Esports Entertainment Group became the first esports betting company to launch an initial public offering (IPO) today.
The company is a licensed online gambling company with a specific focus on esports wagering and 18+ gaming. Esports Entertainment offers bet exchange style wagering on esports events in a licensed, regulated and secure platform to the global esports audience at Vie.gg. In addition, Esports Entertainment intends to offer users from around the world the ability to participate in multi-player mobile and PC video game tournaments for cash prizes. Esports Entertainment is led by a team of industry professionals and technical experts from the online gambling and the video game industries, and esports.
Esports Entertainment Group went public on the NASDAQ Capital Market and the company will be trading under the symbol “GMBL”. The uplisting makes GMBL the first iGaming company with its shares publicly traded on a major stock market in the US. EEG announced the pricing of its public offering of 1,980,000 units of shares at a price to the public of $4.25 per unit. Each unit issued in the offering consists of one share of common stock, one Unit A Warrant to purchase one share of common stock and one Unit B Warrant to purchase one share of common stock.
The company behind Vie.gg may be a pioneer, but launching an IPO can potentially set the precedent for other organizations within the esports industry willing to take the plunge. With esports quickly becoming one of the biggest industries in the world, investing in the scene may seem like a no-brainer.
Esports Entertainment Group expects to receive gross proceeds of approximately $8.4 million, before deducting underwriting discounts and commissions and other estimated offering expenses.
The industry is growing rapidly and this decision to open up shares to the public further cements esports as a titan to rival film, music, sports and other forms of entertainment. The total amount bet on esports competitions is expected to hit $12.9 billion and the esports betting industry is projected to exceed $23 billion in value in 2020.
Even though esports is certainly trending upward, some may be reluctant to invest in the relatively new field, especially considering the turbulent situation in the financial markets.