The publicly listed and Malta-licensed online gambling firm Esports Entertainment Group, which operation is primarily focused on esports betting and 18+ gaming, revealed that it is to acquire the owner of online casino and sports betting operator Argyll Entertainment AG, LHE Enterprises Ltd.
The Maltese gambling company did not reveal the price of the deal but shared that the operating support subsidiaries of Argyll Entertainment would also be included in the acquisition.
The last few years have seen the company, which officially rolled out sportnation.bet as its flagship brand in 2017, expand its presence within the UK and Irish market. Currently, it leverages a team of 40 individuals, who work in different verticals, including regulation, marketing, risk management, technology, etc. and who are aimed at providing the firm’s customers with safe and transparent online gambling services, a great variety of high-quality gaming and sports content and attractive rewards programs.
Argyll Entertainment is incorporated in Switzerland, but it currently has support services operating on the territory of Malta and the UK. The gambling brand also holds operating licences issued by the UK Gambling Commission (UKGC) that allows it to offer online casino and sports betting sites across the UK, and by the Irish Revenue Commissioners that allows it to run its services in Ireland.
Gambling Companies Seeking to Consolidate Their Presence in Established Regulated Markets
Argyll Entertainment, which has been owned and operated by LHE Enterprises Ltd, is currently generating revenue of approximately $12 million on an annual basis. Bearing that in mind, analysts have projected that the newly-announced acquisition will have a considerable positive impact on Esports Entertainment Group’s performance, especially considering the fact that players in the UK and Ireland have been keen sports bettors.
For the time being, Esports Entertainment Group is offering pool betting, daily fantasy sports betting, fixed odds and exchange style betting on various esports events on a platform that has already been licensed and regulated. The company has been willing to start offering its customers the chance to participate in multi-player mobile and PC video game tournaments offering monetary prizes.
Now, the acquisition of Argyll Entertainment is expected to be beneficial for the Malta-based company, as it would help it expand its presence in countries where gambling has been a preferred pastime, not to mention that the deal would result in expanding the offering of Esports Entertainment Group beyond the esports betting, despite the promising future which this type of gambling is expected to have in the years to come.
As Casino Guardian has already reported, the gambling sector not only in the UK but also worldwide has been subject to consolidation in the last few years. Lately, many gambling regulatory authorities have been focused on the implementation of stricter gambling regulation in an attempt to protect consumers from possible gambling-related harm. This trend of stricter regulation, however, has made it more difficult for some operators to continue their existence, which resulted in consolidation through merger and acquisition deals in the sector over the last few years.
- Author
Olivia Cole
