The iGaming, or online gambling, niche market was red-hot in 2020 and 2021 but may be cooling off now. So, it makes sense that Esports Entertainment (NASDAQ:GMBL) would choose to sell its Bethard iGaming business. GMBL stock bounced around in response to this and other news items.
This morning, Esports Entertainment issued a press release with multiple company-specific updates. First and foremost, Esports Entertainment entered into a share purchase agreement to sell Bethard, an “operator of online casino and sportsbook brands that is licensed in Malta and Sweden.”
Esports Entertainment expects to receive a total of 9.5 million euros for its Bethard business. Interestingly, the press release didn’t specify the name of the purchaser.
Notably, Esports Entertainment previously disclosed that it’s shutting down its Argyll business. Argyll was a licensed gambling operation based in the U.K.
What’s Happening With GMBL Stock?
It seems that financial traders are still assessing the news related to Esports Entertainment. Within the first hour of trading today, GMBL stock shot up 10%, then pulled back and went negative for a moment, but then was up 5% at the time of writing.
So, there’s no telling where the Esports Entertainment share price might land today, though the overall sentiment appears to be positive. That’s understandable since Esports Entertainment is being proactive in reducing its debt load.
In less than a year, Esports Entertainment managed to reduce its debt from $32.2 million to $15.5 million. Among other actions, the company sold its Spanish gambling license earlier this year. This brought 2.1 million euros in proceeds to Esports Entertainment.
Moreover, the company terminated a lease “at an idle property … eliminating remaining total lease liability over the lease term of $0.8 million.” Thus, little by little, it looks like Esports Entertainment may be able to eliminate its debt eventually.
At least, that’s what some of Esports Entertainment’s investors are probably hoping will happen. By and large, traders seem to be optimistic as they push GMBL stock higher today.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
