Esports Entertainment has faced challenges since May 2022 when it expressed doubt about its future. In November, its UK brands SportNation and RedZone ceased trading, and former CEO Grant Johnson left the company the following month. The new CEO, Igelman, conducted a thorough review and developed an action plan to navigate the evolving landscape of the esports and esports gambling industries.
Esports Entertainment is now focusing on expanding its B2C offerings, particularly through its Idefix platform, which was acquired as part of the Lucky Dino acquisition. With its MGA license, the company plans to prioritize esports wagering and introduce new betting content and offerings. Additionally, it is integrating the Oddin.gg iframe solution for esports wagering and aims to develop an esports-first B2B platform for sale to third parties.
The company has also engaged in divestment efforts to streamline operations. This year, it sold its esports Spanish gaming license and the Bethard business, resulting in debt reduction and cash flow. Argyll Entertainment in the UK, an online gambling business with recurring losses, is being liquidated.
To further optimize its operations, Esports Entertainment reduced its employee headcount by over 37% this year. Although restructuring incurred upfront costs, the company anticipates over $4 million in annual operating expense savings.
Despite the challenges, Igelman views the company’s achievements in his short tenure as CEO as noteworthy and believes in the value of its differentiated assets. With strong leadership, strategic direction, and financial discipline, Esports Entertainment aims to become a leader in this rapidly emerging market and create value for its shareholders.
