EBET and Btobet have recently taken legal action against Aspire Global, citing a variety of breaches of contract. The two companies filed their respective lawsuits in different courts, with EBET’s case being brought before the Eighth District Court of Clark County in Nevada and Btobet’s case being filed in the Business and Property Courts of England and Wales.
Aspire Global, which was acquired by NeoGames in 2022 and saw the deal officially close in June of that year, is at the center of these legal challenges. EBET’s lawsuit stems from a deal made in May 2021 to acquire specific B2C assets from Aspire Global. This deal was meant to include websites, domains, and intellectual property, and Aspire even established a special purpose entity, Karamba Limited, for this purpose. However, EBET is claiming that Aspire made fraudulent representations regarding the number of player accounts it had, as well as its expenses, revenues, and the process of obtaining an online gaming license in Germany.
Furthermore, EBET alleges that Aspire deliberately exaggerated the number of player accounts in order to entice EBET into the agreement. Additionally, EBET asserts that Aspire was aware that it would not qualify for an online gaming license in Germany due to not fulfilling a necessary payment as part of the process. The legal challenge also accuses Aspire Global of misrepresenting their operating expenses, leading EBET to believe it was purchasing a business with a top-line annual revenue of approximately 65 million Euro. EBET is claiming that the representations and warranties in the share purchase agreement were breached by Aspire, as false information was provided.
Btobet’s legal challenge revolves around a Special Purchase Agreement dated September 2020, related to Aspire’s 20 million Euro acquisition of Btobet at the time. Specifically, the lawsuit centers on clauses related to earnout, with Sousa Enterprises Ltd and Eltsar Ltd – the co-founders of Btobet – alleging that Aspire failed to fulfill its obligations by not paying additional fees in response to additional jurisdiction costs incurred by Btobet in 2022. These costs arose from Btobet’s efforts to expand Aspire into different jurisdictions throughout the year.