The group has increased its revenue guidance to $105m following the completion of the deal for the Swedish business. In 2020, the Swedish business generated $31m in revenue. The transaction, which was first announced in May, involves a €16m cash payment and a 12% net gaming revenue share for two years. The overall value of the deal is estimated to be around $27m.
“This is a significant addition for Esports Entertainment Group, as it significantly boosts our revenue and expands our reach in the market,” said Grant Johnson, the CEO of Esports Entertainment. “As a result of this transaction, we will obtain two new gaming licenses, including one in the strategically important Swedish market. With these additions, we will have a total of six tier one licenses globally.”
Bethard, which is based in Malta and is licensed in both Sweden and Spain, will play a crucial role in the continued growth of Johnson’s business. The acquisition of Bethard was announced shortly after UEFA, the European football governing body, initiated an investigation into AC Milan star Zlatan Ibrahimović over his alleged ownership share in a betting operator. Ibrahimović, who is a brand ambassador for Bethard, is reported to have a stake in the company through his Unknown AB business.
Esports Entertainment has made several significant acquisitions in the past year. These include the purchase of Lucky Dino Gaming Limited (operator of Lucky Dino, Olaspill, Kalevala Kasino, and Casino Jefe) for approximately $30m in March of this year, as well as the acquisition of SportNation and RedZone operator Argyll Entertainment in 2020.
In the financial results for the quarter ending on March 31, Esports Entertainment reported a total revenue of $5.4m, compared to no revenue in the same quarter of 2020. However, the company experienced a net loss of $12.4m for the quarter, up from a net loss of $6.3m in the corresponding period last year.
