A worldwide sports betting, gaming, and entertainment conglomerate, Entain, has purchased Unikrn, an esports wagering firm, for a reported £50 million ($68.9 million). The acquisition will encompass Unikrn’s technological platform, offerings, and personnel. Guiding Entain’s esports endeavors will be Justin Dellario, previously the Vice President of Content and Esports at Twitch.
Entain projects that the esports betting and social casino-related market could expand to a $20 billion or greater addressable market by 2025. The organization intends to construct the “initial scalable platform” to cater to the burgeoning esports kill-based wagering market.
Earlier this year, Unikrn declared a strategic alliance with startup FYX Gaming to collaborate on novel blockchain-based gaming products and monetization solutions. It remains uncertain whether the company’s new proprietor, Entain, will perpetuate this partnership, but blockchain and NFTs have become prevalent methods for operating and engaging fans within the esports industry.
The reason we might witness a rise in esports wagering takeovers
This acquisition approach is becoming more widespread as wagering firms concentrating on conventional sports and online wagering acknowledge the potential of esports. For instance, BetMGM presented an offer of $11 billion to acquire Entain, but the company declined, citing the price as too low.
In March, casino behemoth Bally’s Corporation presented an offer of roughly $100 million to acquire Allied Esports Entertainment, Inc. Allied Esports owns and operates the HyperX Esports Arena located within the Luxor Hotel and Casino in Las Vegas.
The acquisition trend is bidirectional. Esports Entertainment Group (EEG) acquired B2C sports wagering and online casino operator Bethard from its parent company Gameday Group.
The agreement encompassed a €16 million ($18.9 million) cash payment and a 12% net gaming revenue share for a period of two years. According to an announcement, Bethard generated revenue of $31 million (£22.4 million) in 2020.
As more US states enact legislation incorporating esports into the list of authorized online wagering activities, wagering operators will seek to acquire esports wagering companies, and vice versa.
Why we might not see a rise in esports wagering takeovers
Acquiring esports wagering operations rather than constructing one from the ground up makes sound business sense. However, not all operators share this perspective. Occasionally, online wagering and iGaming websites find it more advantageous to “integrate” than to “surpass” esports competition.
A well-known online betting platform, Betway, has recently forged a partnership with G2 Esports, a prominent esports organization based in Berlin. This collaboration aims to deliver exciting experiences for fans, including exclusive contests, live broadcasts, and prize draws.
Other gambling firms are also venturing into the esports realm. Leo Vegas, a mobile casino, is leveraging Abios, an esports data provider, to enhance its website and mobile application. Abios was recently acquired by Kambi, another major player in the industry.
We can anticipate more agreements similar to the one between Entain and Unikrn, but there are numerous avenues for integrating esports into gambling without resorting to acquisitions.
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