Esports Entertainment CEO details B2C, divestment plans
In a significant communication to shareholders dated April 18, Alex Igelman, the newly appointed CEO of Esports Entertainment, laid out the company’s strategic plan for B2C expansion while detailing its ongoing divestment initiatives.
Esports Entertainment has encountered considerable challenges since May 2022, when it expressed concerns about its operational viability. The company’s troubles deepened with the discontinuation of its brands, SportNation and RedZone, in the UK last November. This turmoil culminated in the departure of former CEO Grant Johnson the following month amidst speculation regarding the organization’s future.
Upon his appointment in January 2023, Igelman embarked on a comprehensive review of the company. He stated, “In my first three months, I conducted a thorough assessment of the organization, aligning our strategic vision with the evolving landscape of the esports and esports gambling sectors.”
Central to Esports Entertainment’s rejuvenation plan is a shift towards enhancing its B2C offerings, prominently through the Idefix platform, which was acquired during the $30 million purchase of Lucky Dino in March 2021. Igelman noted, “As an innovative B2C igaming operator functioning under a Malta Gaming Authority (MGA) license, we aim to rekindle our focus on esports wagering by introducing new betting content and solutions.”
He further revealed that the company is in the final stages of integrating the Oddin.gg iframe solution, which will bolster its esports wagering platform. “Our long-term vision includes launching an esports-centric, Idefix-based B2B platform for distribution to third-party operators,” he stated.
Streamlining Through Strategic Divestments
Igelman highlighted a series of divestment actions undertaken to streamline operations, many completed in the current year. “In January, we successfully sold our esports Spanish gaming license for approximately $1.2 million. Shortly after, we finalized the sale of the Bethard business in February for around $1.7 million in cash while simultaneously alleviating approximately $7.5 million in associated debt and liabilities,” he explained.
Additionally, Igelman disclosed that in March, the company initiated the liquidation process for Argyll Entertainment, an online gambling entity in the UK burdened by ongoing losses.
The CEO acknowledged the tough decision to reduce the workforce, which has now seen a reduction of over 37%. “Our employee count decreased from 158 full-time staff at the end of 2022 to 99, including anticipated reductions. While these restructuring measures incurred initial costs, they are projected to result in annual savings of over $4 million in operating expenses over time.”
Strategic Vision for the Future
Despite a tumultuous beginning to 2023, Igelman remains optimistic about the company’s prospects, citing noteworthy achievements during his brief tenure. “Esports Entertainment possesses invaluable and distinctive assets that we believe will play a crucial role in shaping the future of the industry,” he asserted. “I am confident that the strides we have made in just a few months are significant.”
Looking ahead, Igelman emphasized the importance of robust leadership, clear direction, and fiscal prudence. “With a focused approach, I am profoundly confident in our ability to position Esports Entertainment as a frontrunner in this rapidly evolving market while simultaneously creating value for our shareholders.”
