Esports Entertainment Group (EEG) had such promise. The company would help usher in the eSports revolution, a new avenue of sports betting. But things didn’t go as planned.
Share prices fell 12.7 percent December 7 after the company waited 48 hours to announce the firing of CEO Grant Johnson. The lag in information goes against the responsibility of a publicly traded business, according to iGaming Next.
On December 3 Jan Jones Blackhurst replaced Johnson as chairman.
“Grant recognized the value of esports and online gambling and founded EEG on that basis. On behalf of the board, we wish him well,” Blackhurst said.
The firm has a candidate for interim CEO, someone who will be announced in days. Several candidates are under consideration for permanent CEO.
In recent months, Esports Entertainment sold off assets and shuttered its betting platform VIE.
Gone is the Spanish online casino business. On December 7, EEG closed the U.K.-based Argyll Entertainment business. It cost too much to run and failed to produce profits. The company will consider dumping the remaining iGaming assets, too.
Additional selloffs would be considered because of “increasing regulatory burdens and competition.” The company hopes to restructure its debt obligations to take care of the default status.
“The company is optimistic that an agreement can be reached to the benefit of both parties in the near term,” it added.
To cap all this, EEG is mulling over an offer from a third-party firm to buy assets and intellectual property. The combined company would focus on growing esports revenues, according to a statement to investors.
