Esports Entertainment Group (OTCQB:GMBL) provided details of its global expansion plans for 2019, saying in a regulatory filing that it will be seeking licenses in regions as far-flung as Malta and in Asia as growing demand for e-sports wagering becomes more popular in coming years.
"We have applied for an online gambling license in Malta and we intend to establish our office and commence online gambling operations in that jurisdiction within the next six months so that we can service much of the European Union market," Esports said in a filing with the US Securities and Exchange Commission.
"We intend to apply for an online gambling license in an Asia jurisdiction and we intend to establish our office and commence online gambling operations in that jurisdiction within the next 18 months."
Esports also said it intends to launch skill-based video game tournaments to be played on mobile devices within the next six months.
“We are working closely with our banking partners to ensure we have the necessary capital to launch new exciting products to the market, like our new pool betting product that launched today and our skill-based tournament play for cash prizes, which we will be launching next year," Esports CEO Grant Johnson said in an email.
The licensed online gambling company's expenses for the expansion will be as follows: $500,000 for the video game tournaments to be played on mobile devices; $1 million for the skill-based video game tournaments to be played on PCs and video game consoles; $1 million to obtain the online gaming license from and to establish operations in Malta; $500,000 for the gaming license in Asia; and $5 million to market online betting services.
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Esports also said in the filing that for the year ended June 30, 2018, the company incurred total operating expenses and a resulting net loss of $2,005,715 and $2,028,662, respectively, compared with previous year, when total operating expenses and the resulting net loss reached $754,149 and $837,932, respectively.
Johnson told Proactive Investors previously that Esports is growing just like a technology company and is focused on being first to market, ramping up operations and signing as many partnerships as possible. Hard numbers that reflect how it has actually performed will become available 18 months to two years down the road, he explained.
"We just got all the pieces together. We want to make sure all the pieces are in place," he said. "I believe we will be one of the top 10 operators" as an online gambling exchange in the coming years.
--Updated with additional details--