EBET to sell off B2C brands less than three years after buying them

EBET has confirmed that it would be selling off its seven B2C online betting and casino gaming brands only three years after closing a €135m deal to acquire them from Aspire Global in December 2021.

EBET to unload seven of its assets to cover debt

The business, previously known as Esports Technologies, was hoping to leverage the brands' standing and drive stronger forays into the business-to-consumer space, by leveraging the Karamba, Hopa, BetTarget, GenerationVIP, Dansk777, Scratch2Cash and Griffon Casino operations.

The brands are now being auctioned off by Hilco Streambank, a company that works on selling intangible assets, and is currently running the foreclosure sale for the aforementioned brands. These brands will be sold as part of a public auction that will take place on August 1, 2024, with bids running through July 30.

Although the assets had struggled to drive the financial results hoped for by EBET, they have nevertheless been able to cultivate a strong following and a massive user base that includes more than 925,000 registered users presently. Their copyrights, patents, trademarks and domain names are equally valuable, having been in circulation for years.

EBET is also tangled in a court battle with Aspire Global over the 2021 deal, arguing that some of the figures presented to the buyer, i.e. EBET, were not truthful. Hilco Streambank has also provided details about the financials, arguing that in the 12 months leading up to March 31, 2024, the B2C assets generated a total of $21m in revenue.

The average number of gamblers at each brand a month was 18,400 and the first-time deposit amount was €127, the company said in a statement. 95% of the total revenue came from the online casino segment.

Brands that are well-positioned in a $100bn global market

The company similarly took a look at the net gaming revenue and said that over the same period, the NGR hit $18.9m, with the bulk of that coming from the United Kingdom market – around 59%. Other markets that claimed significant contributions to the business’s bottom line include Germany with 17% of NGR and Denmark with 8% of NGR.

Hilco Streambank has issued a statement in which it outlined the reason why EBET had decided to push forward with the sale, citing the company’s inability to leverage the consumer experience in a way that would make it sustainable.

"Pursuant to the terms of various gaming platform agreements, there are limitations on EBET’s ability to manage the customer experience and engage with the customer to provide customised offerings tailored to the particular customer needs."

Hilco similarly reminded potential buyers that they would have the opportunity to tap into a significant market that is projected to hit $100 bnglobally in 2024. The sale of these assets comes after EBET defaulted on debt that it owes to CP BF Lending, a creditor, and puts the company in a tight spot.

In light of this default, the sale of the assets is not unexpected, as EBET itself said in 2023 that the lender, i.e. CP BF Lending, would most likely exercise its rights to foreclose on assets to "satisfy the company’s debt obligations."

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