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Esports Entertainment Group Reports Fiscal First Quarter 2021 Financial Results

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Esports Entertainment Group, Inc., an esports and online gambling company, announced its financial results for the fiscal first quarter ended September 30, 2020, as well as an update on several key business initiatives.

Business Highlights

  • Signed agreement to acquire Helix eSports and ggCircuit in deal valued at $43 Million
  • Acquired Argyll Entertainment and its SportNation brand, adding Tier 1 gambling license covering UK and Ireland; Malta gaming license secured in May 2020
  • Acquired assets of FLIP Sports, providing ownership and control of tech stack
  • Acquired Esports Gaming League, with a history of partnerships that include Microsoft, Red Bull Arsenal FC, and Activision; subsequent to acquisition EGL announced first-of-their kind deals with LA Kings, LA Galaxy, and Philadelphia Union to be official esports tournament provider
  • Partnered with Allied Esports as title sponsor of the VIE.gg CS:GO Legend Series tournament; the two-week competition drew 1.7 million unique viewers and generated 1 million hours watched, making it the most-watched Legend Series event since tournament was created in 2017
  • Expanded partnership with Dignitas, an esports asset of Harris Blitzer Sports and Entertainment, securing naming rights to famed CS:GO team; partnership includes strategic digital and physical activations in New Jersey marketplace as core focus
  • Partnered with Twin Rivers Gaming to launch VIE.gg wagering platform in New Jersey in calendar Q1 2021
  • Working with the New Jersey Gaming Commission to launch pilot skill-based player-to-player wagering platform, LANduel
  • Opened corporate office at Prudential Center in Newark, NJ

“We have achieved many significant milestones since uplisting to the NASDAQ in April,” commented Grant Johnson, CEO of Esports Entertainment Group. “The COVID-19 pandemic has absolutely accelerated the rapid growth of esports leading to mainstream broadcasts to national TV audiences on ESPN and Fox. These trends helped us set new record audience viewing stats with our partner Allied Esports for the globally recognized Legend Series, just one of many accomplishments during the quarter. We believe the successes achieved this year provide an extremely strong foundation for long-term growth while offering investors a true pure play opportunity in the burgeoning world of global esports.”

Johnson continued, “We have structured our business to deliver a diversified esports and online gambling company via three key business pillars and believe this multi-tiered approach provides investors broad exposure to two major trends, the rise of competitive gaming and the legalization of online gambling in the US.”

“As we look ahead, we believe the acquisitions we have made as well as those we plan to make, combined with a growing list of world-class partnerships, Esports Entertainment is in a great position to accelerate the monetization of our robust three pillar strategy,” concluded Johnson.

F1Q21 Financial Results

Revenue for the three months ended September 30, 2020 totaled $222,392, an increase of $222,392 over the $0 recorded for the three months ended September 30, 2019 (this includes only 2 months of contribution from Argyll because the deal closed on August 4th). The increase was primarily attributable to the acquisition of Argyll Entertainment as we are now revenue a generating company.

Post F1Q21, October has seen a significant uptick, with levels of turnover, Gross Gaming Revenue and Net Revenue returning to pre-COVID levels. Total handle was above $16 mil for the month of October and revenues for the month were above $600K.

Total operating expenses for the three months ended September 30, 2020 totaled $3.7 million, an increase from the $0.7m recorded for the three months ended September 30, 2019. The increase was primarily attributable to the increased payroll, stock compensation, marketing, legal and professional services fees related to increased business activity.

Total net loss for the three months ended September 30, 2020 was $1.8 million, driven principally by reduced revenues related to the measures taken post the regular UK Gambling Commission audit of Argyll Entertainment, partially offset by a change in fair market value of warrant liability of $2.1m.

As of September 30, 2020, the Company had total current assets of $10.4 million and total current liabilities of $8.2 million, resulting in working capital of $2.3 million. Cash and cash equivalents totaled $8.9 million and shareholders’ equity was $16.8 million at September 30, 2020.

Guidance

The Company reaffirms its guidance of $13 million in revenue in fiscal 2021 and $25 million in revenue in fiscal 2022 from its core Argyll and VIE platforms. On a proforma basis, including the acquisitions of Helix Esports and ggCircuit, the Company expects to report $42 million in revenue in fiscal 2022 with positive EBITDA of $2 million.

Fiscal First Quarter 2021 Conference Call

The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss its F1Q21 financial results. Participants may join the conference call by dialing 1-855-327-6837 (U.S. Toll-Free) or 1-631-891-4304 (International). A live webcast of the conference call will also be available at http://public.viavid.com/index.php?id=142485.

For those unable to participate in the conference call, a telephonic replay of the call will also be available shortly after the completion of the call, until 11:59 pm ET on Monday, November 30, 2020, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 10011948.

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BGaming

CasinoCanada launches free social slot tournament

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CasinoCanada.com launches a new social tournament system built around free-to-enter slot competitions, combining daily, weekly, and monthly events with leaderboards, bonus prizes, and exclusive merchandise.

The tournaments are powered entirely by BGaming slots, marking the first industry collaboration between an affiliate brand and BGaming focused specifically on social tournament engagement.

Participation in all tournaments is free for registered users of legal gambling age.

Players compete across rotating tournaments featuring a changing lineup of BGaming titles, including hit titles Aztec Magic Bonanza, Bonanza Billion, and Elvis Frog, among others.

Prizes include various bonuses and free spins from CasinoCanada partner casinos.

Selected special tournaments also feature exclusive BGaming merchandise prizes.

Tournament performance is reflected in public leaderboards, adding a competitive and community-driven layer to the CasinoCanada experience.

While social slot tournaments have become increasingly common in iGaming, many existing formats are built around the same providers and similar tournament structures.

CasinoCanada’s approach focuses on free participation, rotating BGaming content, partner casino bonus rewards, merchandise prizes, and recurring competition.

Eugene Ravdin, Head of PR at CasinoCanada, said: “The affiliate industry is moving beyond static review pages and traditional bonus listings. Community features, recurring engagement formats, and social competition are becoming increasingly important for long-term audience retention.

“Our goal is to create something more interactive and community-driven while also giving more visibility to BGaming’s slot portfolio through a format that players can engage with on a daily basis.”

Kate Puteiko, CMO at BGaming, said: “Players and the community have always been the beating heart of everything we do here at BGaming.

Online play no longer has to be a solitary activity, and tournaments like this are an excellent way to connect players and enhance everyone’s experience.

CasinoCanada shares this vision, and this collaboration is a natural extension of that.

We are excited to see our games front and centre of these tournaments and for players to begin creating memorable moments competing with them.”

CasinoCanada plans to introduce additional community features in the future, including gamification systems and forum functionality designed to expand user interaction around the tournament ecosystem.

The tournaments are now live at: https://casinocanada.com/tournaments/

The post CasinoCanada launches free social slot tournament appeared first on Americas iGaming & Sports Betting News.

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Delasport Accelerates Canadian Growth

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Delasport continues to strengthen its position in the Canadian regulated market, now powering three live brands in Ontario while preparing for further expansion into Alberta as the province moves toward opening its regulated online gaming market.

Delasport’s technology is currently live in Ontario with TitanPlay.ca, Maverick Games, and Betnova.ca. The company provides a combination of full turnkey platform solutions of Casino, Sport, Player Account Management and Managed Services as well as its high-performance Sportsbook iFrame technology. This enables operators to launch quickly while delivering a premium user experience tailored to the Canadian audience.

With Ontario continuing to establish itself as one of North America’s most competitive regulated markets, Delasport’s growing local presence reflects the company’s long-term commitment to Canada and its confidence in the market’s continued evolution.

“Ontario is a strategically important market for us, and it has already proven to be a strong success story. Seeing multiple brands successfully operating on our technology and services demonstrates the strength of our platform in acquiring and retaining players in Ontario. We’re excited to continue this momentum as we prepare for Alberta,” said Oren Cohen Shwartz, CEO of Delasport.

As part of its next phase of Canadian growth, Delasport has officially applied for Alberta’s upcoming B2B licensing framework and is already preparing to go live with a partner operator once the market opens.

The company’s Canadian momentum is further supported by its mobile-first approach. TitanPlay’s iOS application is already available on the Apple App Store for users in Ontario, delivering a seamless casino and sportsbook experience powered by Delasport technology.

Delasport’s platform in Canada includes a wide range of personalization and engagement tools designed to enhance user retention and entertainment value.

The company has continued to position itself as one of the industry’s leading providers in regulated markets worldwide, with a strong focus on scalable technology, localization, compliance, and player-centric innovation.

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Canada

Responsible Gambling Council Urges Financial Institutions to Strengthen Protections Against Gambling Harm

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The Responsible Gambling Council (RGC) has urged Canada’s financial sector to take a proactive role in mitigating gambling-related financial harm. A new whitepaper released highlights how banks and credit unions are uniquely positioned to protect the financial well-being of their customers.

The whitepaper, Opportunities for Impact: The Role of Financial Institutions in Mitigating Gambling-Related Harm, argues that financial institutions have a unique duty of care. Financial institutions have direct access to gambling transaction data that reveals early warning signs of financial vulnerability. These indicators include rapidly shrinking savings and an increased reliance on overdrafts or credit.

“The rapid expansion of regulated gambling in Canada requires an evolved response from our financial systems. By adopting tools already proven in other jurisdictions, Canadian banks can become leaders in protecting customer financial health,” said Tracy Parker, SVP, Accreditation, Advisory & Insights at RGC.

Jurisdictions like the UK and Australia have already recognized the powerful role financial institutions play. Banks such as Monzo and Starling in the UK were the first to offer voluntary gambling blocks to their customers. Similarly, the National Australia Bank provides dedicated support pages and links to financial counseling.

RGC recommends that Canadian financial institutions implement several key strategies:

• Improving the accuracy of Merchant Category Codes to better track gambling spend.

• Offering voluntary transaction blocks and self-defined monthly spend limits.

• Providing targeted messaging and support resources within digital banking platforms.

Beyond retail banking, RGC highlights the importance of commercial relationships. Financial institutions can influence industry practices by setting high harm prevention expectations for gambling operators. Integrating these considerations into due diligence processes helps mitigate reputational and regulatory risks.

The post Responsible Gambling Council Urges Financial Institutions to Strengthen Protections Against Gambling Harm appeared first on Americas iGaming & Sports Betting News.

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