GMBL New Jersey, a new US-facing subsidiary, has been formed by Esports betting operator Esports Entertainment Group (EEG). EEG stated that very soon, they will give updates for all of their license applications as they are submitted, and the new subsidiary will make its first application for a betting license in the state.
Grant Johnson, chief executive of Esports Entertainment Group, stated that their announcement marks yet another significant milestone and provides the market with even greater insight as to their growth strategy. He also stated that the US market represents a very big opportunity for them and thanked the continued support of their valued shareholders. They intend to pursue it in 2020 and beyond aggressively.
EEG stated that they received an extra $1.9m funds from a public offering of securities. This is after the contribution of $885,762 earlier this month for total fundraising of $2.8m when the operator signed a binding letter of intent to obtain LHE Enterprises. Johnson also noted that the acquisition would have “a major positive impact” on the business with Argyll generating an annual revenue of around $12.0m (£9.7m/€11.1m).
Furthermore, the group secured a gaming service license from the Malta Gaming Authority (MGA) on 14 May. The license will enable Esports Entertainment to offer online pool betting to players, running for ten years. A rise in esports betting has resulted from the suspension of almost all traditional sports because of the novel coronavirus (Covid-19) pandemic.