According to insider reports, Las Vegas-based betting firm EBET is preparing to withdraw from esports betting markets — as reported by Sharpr today. This news comes hand-in-hand with the revelation that several employees have been let go from EBET, formerly known as Esports Technologies. Reportedly, this shift in focus comes from a desire to leave the esports industry, pivoting and deep-diving into the online casino business – operating brands such as Gogawi casino, Karamba casino, BetTarget and Griffon, to mention a few.
Within recent months, EBET rebranded from Esports Technologies, which now looks like a case of foreshadowing. Last year, in October, EBET and Aquire Global signed an acquisition deal worth some $76 million, with the latter handing over its B2C portfolio, which included several online casinos and sportsbooks. Since then, EBET has made some monumental changes, with some sources stating that the change in mission has come from underperforming esports resources.
Changes in store for EBET
It was revealed that EBET may be suffering from a lack of revenue coming from its various esports investments. By contrast, the firm’s gambling operations in countries such as Germany and Thailand are funding the company’s growth. However, it was stated that this is an unverified piece of information at the time of writing.
At this point, even if EBET does step back from the esports industry, there are still plenty of opportunities for the firm. In May of 2022, EBET revealed strong, record growth following the successful rebranding from Esports Technologies. At the close of Q1 2022, EBET recognised a quarter-on-quarter growth of more than 166%. Around this time, EBET partnered with Incentive Games, establishing a deal that would bolster online casino offerings.
Most recently, EBET stepped onto a grand stage in Toronto to receive two SiGMA Americas Awards. In what could prove to be an ironic statement, one of those awards labelled EBET the Esports Product of the Year.
Now, following this period of growth and celebration, changes are allegedly taking place within EBET. There are claims that a ‘large number’ of employees working on the esports products within EBET have been laid off, two key advisors have been dismissed, and the COO, Bert Barden, will be leaving the firm in 2023.
Future of the industry
At the moment, many firms are experiencing economic struggles amid a global downturn. These aren’t the first layoffs we’ve seen in the esports and gaming industries, and they certainly won’t be the last. Recently, top organisations like 100 Thieves have turned to the dismissal of content creation and esports resources, fighting against impending financial concerns and attempting to weather the storm ahead.
As a general rule, the esports industry is still expanding and growing ever outwards. It’s still predicted to reach new milestones in the coming years, and all predictions regarding the CAGR of the industry remain relatively strong. It’s important to stress that no company is ever truly exempt from an economic downturn, and as the esports industry is still something of an emerging vertical, there’s a tougher journey ahead for the firms centred within it.