The takeover of Unikrn by Entain has ignited speculation regarding further acquisitions in the realm of esports wagering.
The convergence of online gambling and esports is becoming increasingly interwoven. Recent acquisitions in the domain of esports betting suggest a close connection between these two sectors.
Entain, a global conglomerate specializing in sports betting, gaming, and interactive entertainment, has reached an agreement to acquire esports betting firm Unikrn for an estimated £50 million ($68.9 million). The acquisition will encompass Unikrn’s technological platform, products, and personnel. Leading Entain’s esports operations will be Justin Dellario, previously Vice President of Content and Esports at Twitch.
Entain projects a $20 billion or greater addressable market by 2025 for esports wagering and social casino-related markets. The company intends to construct “the first scalable platform” to cater to the expanding esports kill-based betting market.
Earlier this year, Unikrn announced a strategic partnership with emerging company FYX Gaming to collaborate on novel blockchain-based gaming products and monetization solutions. The continuation of this partnership under Entain’s ownership remains uncertain, but blockchain and NFTs have emerged as popular methods for the entire esports industry to operate and engage fans.
The reason we may witness a surge in esports wagering takeovers
This kind of acquisition is becoming more frequent as wagering firms concentrating on conventional sports and online wagering recognize the potential of esports. For instance, BetMGM proposed to purchase Entain for $11 billion, but Entain turned down the offer, stating the price was too low.
In March, casino giant Bally’s Corporation proposed to buy Allied Esports Entertainment, Inc. for approximately $100 million. Allied Esports owns and operates the HyperX Esports Arena within the Luxor Resort and Casino in Las Vegas.
The acquisition trend is reciprocal. Esports Entertainment Group (EEG) acquired B2C sports betting and online casino operator Bethard from its parent company Gameday Group.
The agreement included a €16 million ($18.9 million) cash payment and a 12% net gaming revenue share for two years. According to a press release, Bethard generated $31 million (£22.4 million) in revenue in 2020.
As more US states enact legislation adding esports to the list of permitted online bets, betting operators will seek to acquire esports betting firms, and vice versa.
The reason we may not witness a surge in esports wagering takeovers
Acquiring esports wagering businesses makes more financial sense than constructing one from the ground up. However, not all operators think the same way. Sometimes, online wagering and gaming websites find it more advantageous to “join” than “beat” esports competition.
A prominent online gaming enterprise, Betway, has recently forged a partnership with G2 Esports, a renowned esports organization hailing from Berlin. This collaboration aims to deliver exciting fan experiences, including exclusive matches, live broadcasts, and prize giveaways.
Other gambling entities are also venturing into the realm of esports. Leo Vegas, a mobile casino platform, is leveraging Abios, a company specializing in esports data and technology, to enhance its website and mobile application.
We can anticipate witnessing more agreements akin to the one between Entain and Unikrn. However, even without acquisitions, there are numerous avenues to integrate esports into gambling offerings.
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