New Jersey has had a successful run since the introduction of sports betting. Failures are rare. But the esportsbook Vie.gg called it quits in November. The sportsbook rolled out in April, affiliated with Bally’s Atlantic City, but couldn’t make a go of it given the costs of doing business.
The company, owned by Esports Entertainment Group, also shut down locations in Spain and the U.K. Emails sent to customers informed them how to remove funds owed to them, according to Yogonet Gaming News.
The decision to close up shop was grim “but necessary,” EEG Chief Executive Officer Grant Johnson said, referring to the “stressful times” to do business.
In New Jersey, categorizing esports as sports betting carried an annual license fee of seven figures, which, given the development of the sport at this point, proved too arduous. Had the marketplace not taken such a drastic downturn, EEG may have raised money, added a sportsbook and survived.
“But by the time we were approved, clearly the world had changed,” he said.
Bally’s financials from August reported only $590 in sports wagering gross revenue, far from sufficient for a profitable operation. Yet in Nevada regulators are considering expanding esports offerings.
In its third-quarter earnings report, EEG acknowledged the firm would face significant liquidity problems in spite of revenue growth. A lack of liquidity prohibited the company from fully monetizing its assets.
