Esports Entertainment Group has signed a binding letter of intent to acquire a 30 percent minority stake in Czech esports content producer Drafted.gg.
Financial terms of the deal were not disclosed. However, according to Esports Entertainment, the acquisition will build on a strategic collaboration and revenue sharing agreement with Drafted.gg.
Producer Drafted.gg currently runs two content production studios. One is in the Czech capital Prague and the other in the United Arab Emirates. Drafted.gg offers games for sports such as football, basketball and cricket, with games streamed live online across Europe and Asia.
Speaking about the agreement, Esports Entertainment CEO Alex Igelman said it supports the group’s strategy of embedding betting content into its esports and igaming offerings. He adds that this is the first step in a broader planned collaboration.
“We are pleased to receive a minority investment and participate in Drafted.gg’s revenue sharing agreement,” said Igelman. “This initial investment and collaboration allows us to seamlessly add a best-in-class provider to our robust ecosystem.”
Esports Entertainment could acquire the remaining stake in Drafted.gg
Looking at future collaborations, Igelman says Esports Entertainment has plans to acquire the entire Drafted.gg business. He adds that this depends on the performance of the content and Esports Entertainment’s ability to integrate its first US sports betting offering.
“We strongly believe the wide selection of content, which includes thousands of short-form games each month, will be well-received by esports bettors in the U.S.,” Igelman said.
“We are also confident that we can successfully integrate Drafted.gg content with leading US sportsbooks.”
The acquisition will support broader B2C efforts
Igelman adds that the deal fits with broader developments in esports entertainment. This also includes switching to a B2C focus.
In April, newly appointed CEO Igelman outlined B2C expansion and confirmed divestment plans. The latter included the sale of the Bethard business, which was agreed back in February.
Also in April, Esports Entertainment entered into an agreement to convert a majority of its debt into company stock. This dispelled many fears about the company’s future, as the group only considered exiting igaming in December 2022.
“The company’s recent focus has been on developing initiatives to further expand our esports and igaming solutions to create a more comprehensive, comprehensive offering of online betting options for our customers,” said Igelman.
“This announcement perfectly complements our upcoming Delasport sports betting offering and our collaboration with Oddin.gg, a leading esports betting solutions company. Through these relationships, coupled with Drafted.gg’s live esports content, the company has built a comprehensive ecosystem for the benefit of our customers.
“Most important is our unwavering commitment to maintaining the highest standards and auditing processes for gaming integrity. This ensures that the content we generate meets the strict legal requirements regarding betting on skill-based content.
“Overall, we are excited about the prospects of this strategic investment and the importance of this collaboration.”