The next big thing might not be so big after all, at least not for Allied Esports Entertainment.
In 2018, with the opening of the HyperX Esports Arena at the Luxor in Las Vegas, Allied Esports was among the first to invest in the potential of esports as a spectator sport and betting option. Now it’s exploring the sale of the venue and getting out of esports altogether, according to the Las Vegas Review-Journal.
Company President and CEO Claire Wu said Lake Street Capital Markets from Minneapolis will assist in providing options, including a sale. Allied sold the World Poker Tour for $105 million to Element Partners in a sale that closed July 12.
The problem with HyperX, apparently, was that the arena appealed mainly to teenage gamers too young to gamble. Some observers criticized a dearth of programming and investment.
“We’re not kind of boxed in to have to do a particular deal under a particular timeframe, and then have to do it under poor economic deal terms,” Chief Financial Officer Tony Hung said on a recent conference call with investors.
The company expects to use cash from any sale, including proceeds from the poker tour, to move into online entertainment or other aspects of gaming.
