Las Vegas-based esports wagering giant Esports Technologies is getting a much-needed lift-up after plummeting over the course of last week. The change comes as a result of the company managing to get access to a gaming permit in the UK. The permit will give the company access to a huge market worth $19.2 billion in Great Britain alone, according to data from the UK Gambling Commission.
As soon as the news on the license deal came out, Esports Technologies stocks went up by almost 3% on Wednesday, after a 5% rise earlier on Tuesday. The growth is beneficial and expected to reverse part of the damage done when the company’s stocks tumbled a little over 17% a week ago.
Esports Technologies Gains Almost 1.25 Million UK Customers, Gets License
The company connected its recent UK license procurement to one of its most recent acquisitions of a business-to-consumer unit belonging to Aspire Global. The deal was sealed for close to $76 million in cash and stocks. As a result of the acquisition, Esports Technologies managed to get access to a huge market of 1.25 million deposited customers.
Most of these customers originate in the UK, in online sportsbooks as well as popular casino brands like Griffon Casino, Karamba, and Hopa. The UK is known for being one of the best-developed gaming markets on the planet, so the strategic move is expected to generate satisfying results for the company.
Esports Technologies will also be acquiring the BetTarget, Dansk777, and GenerationVIP brands as part of the transaction. COO and managing director Bart Barden referred to the license procurement as a “massive strategic milestone”.
Esports a Promising Market for Stakeholders
It is already known that gaming companies with great exposure to casino and sports betting listed on the stock market have been receiving a lot of attention nowadays. However, as many domestic jurisdictions have started to give the green light to esports betting, things may gradually change. By penetrating the UK market, Esports Technology would also rely on added geographic diversification to increase its revenues.
To date, the company has already acquired a combined handle worth $1.83 billion as well as cash deposits worth $183 million between September 2020 and September 2021. Plus, its sports wagering platform is now doing most of the work in Latin America and Asia. The company accepts esports wagers and wagers on traditional professional sports.