Esports Entertainment Group Inc (NASDAQ:GMBL) announced Wednesday that its Malta gaming licensed subsidiary Esports Entertainment (Malta) Limited has signed an asset purchase agreement to acquire the business of Lucky Dino Gaming Limited.
In a statement, Esports said the estimated $30 million dealto buy the established Malta-licensed online casino operator with its own proprietary casino platform is expected to be financed through a debt facility the company will procure.
"Over the past five years, Lucky Dino has evolved from a single brand white-label casino operator into a multi-brand, class-leading casino operator and technology business,” said Grant Johnson, CEO of Esports in a statement.
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“In addition to further strengthening our tech stack, Lucky Dino’s assets will give us a substantial foothold in multiple new jurisdictions across Europe and Scandinavia where esports are extremely popular, and with Lucky Dino’s 30K monthly active casino players we will have tremendous cross-selling opportunities with our SportNation and Vie.gg betting platforms,” Johnson added.
In acquiring Lucky Dino’s assets, Esports said it will have access to a premium casino platform based on modern microservices architecture for superior simplicity, scalability, and flexibility. Lucky Dino’s proprietary technology stack includes affiliate marketing software, payment servers, and a comprehensive CRM system with sophisticated gamification and loyalty engine and unique automated player management functionality fit for geographical expansion.
“Lucky Dino has generated an impressive track record of growth, reporting an 86% CAGR on revenue for the five years ended June 30, 2020,” Johnson noted. “With opportunities to realize synergies across shared back-office functions, payment processing and more, we are in a great position to build upon Lucky Dino’s notable EBITDA performance. Ultimately, we will look to bring this exciting online casino platform to the U.S. in the future alongside our vie.gg esports offering.”
Esports said Lucky Dino generated $21 million revenue and $3.8 million EBITDA (earnings before interest, taxes, depreciation, and amortization) in fiscal year 2020 and is forecasted to generate $24 million revenue and $5 million EBITDA in FY21 and $29 million revenue and $6.5 million EBITDA in FY22.
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