Esports Entertainment Group agrees $30m Lucky Dino Gaming deal
Malta-based operator targets “substantial foothold” in European and Scandinavian markets
Esports Entertainment Group (EEG) has agreed a deal to acquire Malta-based online gambling firm Lucky Dino Gaming Limited for a fee of $30m (£22.2m).
In a statement confirming the deal, EEG said the deal to buy the firm, which has its own proprietary online casino platform, would be financed through a yet unacquired debt facility that EEG will procure later.
Lucky Dino’s proprietary technology stack includes affiliate marketing software, payment servers and a CRM system with a sophisticated gamification and loyalty engine, together with an automated player management functionality fit for geographical expansion.
According to company financials, Lucky Dino generated $21m in revenue and $3.8m EBITDA in FY20 and is estimated to increase that amount over the next two years to $24m revenue and $5m EBITDA in FY21, rising to $29m revenue and $6.5m EBITDA in FY2022.
“Lucky Dino has generated an impressive track record of growth, reporting an 86% CAGR on revenue for the five years ended June 30, 2020,” Esports Entertainment Group CEO Grant Johnson said.
“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.
“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 said.
“Ultimately, we will look to bring this exciting online casino platform to the US in the future alongside our Vie.gg esports offering,” he added.
Merger & Acquisition advice specialist firm RB Capital acted as sell side advisers for Lucky Dino Gaming on the deal.
Esports Entertainment Group has been on an impressive streak of acquisitions over the past 12 months, inking deals to acquire ggCircuit, Helix Esports, FLIP Sports, Argyll Entertainment and notably the Esports Gaming League over the summer.
However, in November the firm reported a $1.8m loss in its debut set of financial results, due to reduced UK revenue from its acquired Argyll Entertainment subsidiary.