EEG shuts down UK brands of SportNation & RedZone

EEG shuts down UK brands of SportNation & RedZone

Esports Entertainment Group (EEG) has terminated its UK sportsbook portfolio of SportNation and RedZone Sports.

This evening, Argyll Entertainment AG, the operating firm of SportNation and RedZone notified customers via email that the brands were “closing in the UK market”.

Customers were informed that websites would remain ‘active and operational’ until 30 November 2022. Beyond the notice period, customers will be granted a further week ‘with limited functionality’ to process withdrawals and shut down accounts.

Players have been notified of the process to request withdrawals for any outstanding balances, via FAQ pages.

Founded in 2016, SportNation was the former flagship sportsbook of Argyll Entertainment, who would subsequently launch RedZone in 2017 – a bespoke US sportsbook for British audiences.

The brands came under the ownership of EEG following the Nasdaq firm’s acquisition of Argyll Entertainment in the summer of 2020, undertaken to bolster EEG’s European sportsbook presence.

EEG’s UK withdrawal follows concerns about the liquidity of its business following dire 2021 and 2022 trading.

Q3 trading saw EEG account for corporate losses totalling $50m, impacted by the costly write-downs of its esports assets of ggCircuit and EGL.

Further bottom-line impacts saw EGG halve its corporate cash balance to $9.4m, down from $20m as reported in June 2021, as the firm’s asset value dwindled to $85m.

In October, EEG began costs saving initiatives terminating its esports wagering platform, a decision required to address “near-term challenges”.

EEG CEO Grant Johnson has cited confidence that the company can overcome its embattled position by identifying areas that can deliver seven-figure savings into the bank.

SBC News EEG shuts down UK brands of SportNation & RedZone

Source: SBC News