Esports Entertainment Group reports wider loss, but eyes expansion of online wagering business

Esports Entertainment Group (OTCQB:GMBL) reported on Tuesday higher operating expenses and net losses, but the company believes it will eventually grow as demand for e-sports wagering expands and becomes more popular in the years ahead.

In a regulatory filing, Esports said that for the year ending June 30, 2018, the company incurred total operating expenses and a resulting net loss of $2,005,715 and $2,028,662, respectively, compared to the year ending June 30, 2017 when total operating expenses and the resulting net loss reached $754,149 and $837,932, respectively.

The company said it plans to expand the business.

“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.

“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.” 

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Esports also intends to launch “skill-based video game tournaments to be played on mobile devices within the next six months. “

“We will license the software required for these tournaments from one of several software firms being interviewed. The software license is expected to require an initial estimated payment of $250,000 and monthly payments of up to $25,000,” the company said.

The company’s expenses will be: $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 establish operations in, Malta, $500,000 for the gaming license in Asia,  and $5 million to market the online betting services.

“Our auditor’s report on our June 30, 2018 financial statements expresses an opinion that substantial doubt exists as to whether we can continue as an ongoing business,” the filing said.

Reporting by Rene Pastor, contactable on [email protected]

Story by ProactiveInvestors