EBET B2C assets to be auctioned off less than three years after €135m Aspire Global deal
Hilco Streambank announces public bidding process after operator defaults on loan to creditors and warns it will likely cease operations
EBET and its seven online casino and sports betting brands have been put up for public auction by advisory firm Hilco Streambank.
Formerly Esports Technologies, EBET snapped up the brands in a €135m deal from Aspire Global in December 2021.
The public auction will take place on 1 August, with a bid deadline of 30 July also having been set by Hilco.
Any potential sale will include the Karamba, Hopa, Griffon Casino, BetTarget, Generation VIP, Dansk777 and Scratch2Cash brands.
The successful bidder will gain access to trademarks, domain names, patents, copyrights and a database of more than 925,000 users.
The transaction will also include front-end website code, marketing services accounts and contracts, and a share of certain subsidiaries.
Hilco noted any potential buyer could receive interest as a plaintiff as part of an ongoing litigation process involving EBET.
EBET is currently challenging Aspire Global in court regarding the 2021 acquisition over claims some aspects of the deal were presenting fraudulently.
According to Hilco, the brands’ revenue for the 12 months to 31 March 2024 amounted to $21m (£16.5m), with 95% of that total coming from online casino.
Net gaming revenue (NGR) for the same period landed at $18.9m, with 59% of that total coming from the UK. Germany (17%) and Denmark (8%) were the other best-performing markets for the assets during the time period.
Average monthly actives in 2023 came in at about 18,400, with the average first-time deposit being €127.
The UK reported 12,600 average monthly active players last year, Germany with 1,750 and Denmark with 1,500.
In a statement, Hilco said: “Pursuant to the terms of various gaming platform agreements, there are limitations on EBET’s ability to manage the customer experience and engage with the customer to provide customised offerings tailored to the particular customer needs.
“A buyer has the opportunity to engage with the customer in a more meaningful way.”
Hilco added: “A buyer of the assets has the opportunity to tap into a rapidly growing online gambling market expected to reach $100bn in 2024, and to expand upon the success of the brands by such avenues as putting a greater emphasis on and/or re-entering certain gaming and geographic markets, re-engaging the large player database and/or optimising software and marketing operations.”
The sale process came after EBET defaulted on debt owed to its creditor, CP BF Lending, in June 2023.
In an SEC filing from last month, EBET said: “The lender has a security interest on all assets of the company, and the lender will likely exercise its rights to foreclose on such assets in connection with its attempt to satisfy the company’s debt obligations.
“Upon such a foreclosure, the company will likely no longer have any meaningful assets or business operations and will likely cease operations.”