Financial terms of the deal were not disclosed. However, Esports Entertainment says the acquisition will build on a strategic collaboration and revenue sharing agreement with Drafted.gg.
Producer Drafted.gg currently operates two content production studios. One is located in the Czech capital of Prague and the other in the United Arab Emirates. Drafted.gg provides games for sports such as football, basketball and cricket, with matches streamed live online across Europe and Asia.
Reflecting on the agreement, Esports Entertainment CEO Alex Igelman says it supports the group’s strategy of embedding wagerable content into its esports and igaming offering. He adds that this represents the first step in a broader planned collaboration.
“We’re excited to obtain a minority interest and participate in a revenue-sharing agreement that Drafted.gg has in place,” Igelman said. “This initial investment and collaboration allows us to seamlessly add a best-in-class provider to our robust ecosystem.”
Esports Entertainment could purchase remaining Drafted.gg stake
Looking at future collaborations, Igelman says plans are in place for Esports Entertainment to acquire the entire Drafted.gg business. This, he adds, depends on the performance of the content and Esports Entertainment’s ability to onboard its first US sportsbook.
“We firmly believe that the vast array of content, comprising thousands of short-cycle games available each month, will be well received by esports bettors in the US,” Igelman said.
“We are also confident in our ability to successfully onboard Drafted.gg content with leading US sportsbooks.”
Acquisition will support wider B2C efforts
Igelman adds that the deal fits in with wider developments at Esports Entertainment. This includes its switch to a B2C focus.
In April, newly appointed CEO Igelman outlined B2C expansion and confirmed divestment plans. The latter of these included the sale of its Bethard business, which has already been agreed in February.
Also in April, Esports Entertainment entered an agreement to exchange much of its debt with company stock. This allayed many fears over the company’s future, with the group as recently as December 2022 considering exiting igaming.
“The company’s recent focus has turned towards developing initiatives to further broaden our esports and igaming solutions in order to create a more comprehensive, end-to-end offering of online betting options for our customers,” Igelman said.
“This announcement perfectly complements our impending Delasport sportsbook offering and our collaboration with Oddin.gg, a leading esports betting solution entity. Through these relationships, and coupled with Drafted.gg’s live esports content, the company has built a comprehensive ecosystem for the benefit of our clients and customers.
“Most importantly, our unwavering commitment is to uphold the highest level of gaming integrity standards and audit processes. This ensures content we generate complies with rigorous regulatory requirements tied to wagering on skill-based content.
“Overall, we could not be more excited about the outlook for this strategic investment and the importance of this collaboration.”
Original article: https://igamingbusiness.com/strategy/ma/esports-entertainment-minority-stake-drafted-gg/
