Esports Entertainment Group has made a significant move in the esports industry, signing a binding letter of intent to acquire a 30% minority interest in Czech esports content producer Drafted.gg. Although the financial details of the deal were not disclosed, it is expected to build on an existing strategic collaboration and revenue-sharing agreement between the two companies.
Drafted.gg, which operates two content production studios in Prague and the United Arab Emirates, is known for providing live streaming of sports games such as football, basketball, and cricket. The acquisition aligns with Esports Entertainment’s strategy to integrate wagerable content into its esports and igaming offerings and represents the initial phase of a broader collaboration.
Esports Entertainment CEO Alex Igelman expressed excitement about the investment, emphasizing that it allows the company to add a top-tier provider to its ecosystem. There are also plans in place for Esports Entertainment to potentially acquire the entire Drafted.gg business in the future, contingent upon the performance of the content and the company’s ability to onboard its first US sportsbook.
Igelman believes that the diverse range of content offered by Drafted.gg will appeal to esports bettors in the US and is confident in the company’s ability to integrate Drafted.gg content with leading US sportsbooks. The acquisition of Drafted.gg’s minority interest supports Esports Entertainment’s wider efforts to shift its focus to business-to-consumer (B2C) operations.
This strategic move comes on the heels of other recent developments within Esports Entertainment, including the divestment of its Bethard business and an agreement to exchange debt for company stock. The company has also shifted its focus toward developing initiatives to expand its esports and igaming solutions, creating a comprehensive online betting offering for its customers.
Overall, the acquisition of Drafted.gg’s minority interest represents a significant step forward for Esports Entertainment Group, as it seeks to strengthen its position in the esports and igaming industry and deliver a comprehensive ecosystem for its clients and customers, emphasizing the importance of upholding gaming integrity standards and compliance with regulatory requirements.