Esports Technologies Soars to New Heights Following the Acquiring of a UK License

Esports Technologies secures UK entry

Esports Technologies’ (NASDAQ:EBET) stock is surging higher following the company’s announcement that it has obtained access to a UK gaming permit. Bart Barden, the company’s chief operating officer, describes the move as a “major strategic milestone.” Esports Technologies has taken its first steps into the UK market, securing access to a UK gaming license via an operator services agreement resulting from its recently completed B2C acquisition of Aspire Global.

Today, the provider of esports wagering platforms and related technology is up over 3%. This comes after the stock gained more than 5% earlier in Tuesday’s session. This temporarily halts the bleeding, since the stock has fallen 17.1% in the last week.

Esports Technologies states that the UK license is a result of its previously announced $75.9 million cash and stock acquisition of Aspire Global’s business-to-consumer (B2C) unit. Esports Technologies will gain 1.25 million deposited customers as a result of the $75.9 million completion, the majority of whom will come from UK-focused online sportsbook and casino companies Karamba, Hopa, and Griffon Casino.

The firm added 1.25 million deposited consumers as a result of the purchase, the majority of whom came from UK-focused online sportsbook and casino companies Karamba, Hopa, and Griffon Casino,” the business said in a statement. The purchase also includes the acquisition of the BetTarget, Dansk777, and GenerationVIP brands by the Las Vegas-based operator of an online gaming platform.

Aspire Deal Could Be Beneficial in the Long Run

Apart from securing coveted market access in the United Kingdom, the Aspire Global merger could benefit Esports Technologies in other ways. For the fiscal year ended June 30, Aspire’s B2C division generated $73.9 million in revenue and was profitable, earning $8.2 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). That platform had a wagering volume of $1.8 billion throughout that time period. Esports Technologies’ stock has declined 34.13 percent year to date.

Esports Technologies Makes a Significant Move

Gaining access to the UK, one of the world’s most developed gaming industries, is a win for Esports Technologies, a start-up that went public earlier this year. Among publicly traded gambling enterprises, those with exposure to online casinos and sports betting receive the most attention.

However, if more domestic authorities legalize esports wagering, this could change. Between September 2020 and September 2021, Esports Tech obtained a combined handle of $1.83 billion and $183 million in cash deposits.

Entering the UK further diversifies the company’s revenue source geographically. At the moment, the company’s gogawi.com sports betting platform operates mostly in Asia and Latin America. Esports Technologies takes wagers on both esports and traditional pro sports.

“The United Kingdom has one of the largest gaming markets in the world. According to the UK Gambling Commission, Great Britain’s gaming revenue was roughly $19.2 billion from April 2019 to March 2020. According to the firm, “online gaming has grown to become the largest segment, accounting for nearly 40% of overall revenue.”