Esports Entertainment Group, a leading, global iGaming company and business-to-business (B2B) esports solutions provider, has signed a binding Letter of Intent to acquire a 30 per cent minority interest, in furtherance of strategic collaboration and revenue sharing agreement with Drafted.gg, a leading wagerable esports content producer based in Czech Republic.
Alex Igelman, CEO of Esports Entertainment, stated, “We are excited to obtain a minority interest and participate in a revenue-sharing agreement that Drafted.gg has in place, as a first step in a broader planned collaboration. Drafted.gg is a top-tier provider of esports content, currently including popular esports titles in eSoccer, eBasketball, and eCricket. Drafted.gg currently operates two content production studios, one in the United Arab Emirates and the other in Prague, Czech Republic. Matches are streamed live and online across Twitch and YouTube, as well as other platforms, and are currently offered in jurisdictions across Europe and Asia. This transaction supports Esport Entertainment’s strategy to embed wagerable content into our expanding esports and iGaming offering. This initial investment and collaboration with Drafted.gg allows us to seamlessly add a best-in-class provider of 24/7 esports content and wagering to the Company’s robust ecosystem.”
“We anticipate that based on the performance of their esports content during the first phase of our collaboration, as well as Esports Entertainment’s ability to successfully onboard its first U.S. sportsbook, the Company would then acquire the remaining 70% of Drafted.gg. We firmly believe that the vast array of content-comprising thousands of short-cycle games available each month, with the majority concluding in 8 minutes or less-will be well received by esports bettors in the United States. We are also confident in our ability to successfully onboard Drafted.gg content with leading U.S. sportsbooks.”
“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. Today’s 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, ensuring that the content we generate complies with rigorous regulatory requirements tied to wagering on skill-based content. While we have the utmost confidence that Drafted.gg’s processes and procedures are of the highest caliber, our intention is to commission a thorough integrity audit of Drafted.gg by a third party to meet state-by-state standards and support rapid expansion within the sizable US market. Overall, we could not be more excited about the outlook for this strategic investment and the importance of this collaboration.”