Esports Entertainment takes minority stake in Drafted.gg
Esports Entertainment Group has officially signed a binding letter of intent to acquire a 30% minority stake in Czech esports content producer, Drafted.gg.
While specific financial details of the transaction remain undisclosed, Esports Entertainment has emphasized that this acquisition is an extension of their existing strategic partnership and revenue-sharing agreement with Drafted.gg, which positions them well within the rapidly evolving esports landscape.
Drafted.gg, known for its innovative content production, operates two state-of-the-art studios—one situated in Prague, Czech Republic, and another in the United Arab Emirates. The company specializes in delivering live-streamed content for various sports, including football, basketball, and cricket. This wide array of streaming options caters to audiences across Europe and Asia, enhancing the global reach of esports entertainment.
Commenting on the strategic implications of the deal, Esports Entertainment CEO Alex Igelman remarked, “This acquisition aligns perfectly with our overarching strategy to integrate wagerable content into our esports and igaming offerings. It represents the initial phase of a broader collaboration that we envision for the future.”
“We’re thrilled to secure a minority interest stake and partake in the revenue-sharing frameworks that Drafted.gg has established,” Igelman continued. “This initial investment not only enriches our ecosystem but also enhances our capacity to deliver premier content to our user base.”
Future Acquisition Plans for Drafted.gg
Looking ahead, Igelman has revealed intentions for Esports Entertainment to potentially acquire a controlling stake in Drafted.gg. This significant move hinges on the performance quality of the content and the company’s success in onboarding its inaugural US sportsbook.
“We are confident that our diverse catalogue of thousands of short-cycle games available each month will resonate strongly with esports bettors in the US market,” he stated, highlighting the growing demand for innovative betting solutions.
“Moreover, we are optimistic about our capacity to effectively integrate Drafted.gg’s content with leading sportsbooks across the United States.”
Strengthening B2C Strategy Through Strategic Partnerships
Igelman further elaborated on how this acquisition is part of a larger transformation at Esports Entertainment aimed at enhancing its B2C capabilities.
In April, Igelman, newly appointed as CEO, articulated the company’s shift towards a direct-to-consumer model and outlined specific divestment plans, including the sale of its Bethard business, finalized in February. Additionally, Esports Entertainment has engaged in an agreement to exchange a considerable portion of its debt for equity, addressing shareholders’ concerns about the firm’s stability after contemplating an exit from the igaming sector in December 2022.
“Our recent initiatives are focused on expanding our esports and igaming offerings to develop a holistic, end-to-end online betting platform for our customers,” Igelman elaborated.
“This acquisition aligns seamlessly with our forthcoming Delasport sportsbook initiative and our ongoing collaboration with Oddin.gg, a recognized leader in esports betting solutions. By leveraging these partnerships alongside Drafted.gg’s live esports content, we are constructing a comprehensive ecosystem designed for the benefit of our clientele.”
“Above all, we remain steadfast in our commitment to uphold the highest standards of gaming integrity and rigorous audit processes. Our content generation practices will comply with strict regulatory requirements, ensuring the safe wagering of skill-based games.”
“In summary, we are genuinely excited about the prospects this strategic investment brings and the significance of this collaboration within our business framework.”
