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EBET’s gaming brands will be sold by its creditors in a foreclosure sale, with the company likely to cease operations.

Hilco Streambank announced yesterday (1 July) it would be selling EBET’s seven European iGaming and sports betting brands in a 1 August public auction.

It follows the company defaulting on debt owed to its creditor, CP BF Lending, in June 2023, with the lender agreeing to temporarily hold off from exercising its rights in a termination event.

The termination event has now taken place, with EBET owing a total of $37.1m of debt to its creditors as of 17 June.

In an 18 June SEC filing, EBET said: “The lender has a security interest on all assets of the company, and the lender will likely exercise its rights to foreclose on such assets in connection with its attempt to satisfy the company’s debt obligations.

“Upon such a foreclosure, the company will likely no longer have any meaningful assets or business operations and will likely cease operations.”

The business had failed to pay its obligations multiple times despite attempting to restructure the debt in October 2023.

It followed the firm’s 2022 attempt to survive by cutting 50% of staff and pivoting to iGaming, away from esports.

The brands up for sale include Karamba, Hopa, Griffon Casino, BetTarget, Generation VIP, Dansk 777, and Scratch2Cash.

Karamba was among the brands bought by then-called Esports Technologies in 2021, as part of its $75.9m acquisition of Aspire Global’s B2C assets.

The company’s sites generated approximately $21m in revenue in the 12 months preceding 31 March 2024.

During 2023, an average of 18,400 players used the sites per month, with a mean first-time deposit of €127.  

Buyers to get interest in ongoing EBET litigation

The auction will see EBET’s trademarks, domain names, patents, copyrights, and front-end website code go up for sale.

Interested parties will also be able to buy customer and transaction data for the company’s 925,000 previous users, as well as its marketing services accounts and contracts.

Hilco Streambank also highlighted that purchasers will receive interest as a plaintiff in ongoing litigation, with the potential to receive substantial damages and shares of certain subsidiaries.

EBET is currently challenging Aspire in court over the 2021 asset purchase, arguing certain aspects of the deal were presenting fraudulently.

Hilco Streambank CCO Richelle Kalnit said: “A buyer of the assets has the opportunity to tap into a rapidly growing online gaming market and to expand upon the brands’ success by emphasising and/or re-entering certain markets, re-engaging the large player database, and optimising software and marketing operations.”

NEXT.io has contacted EBET and CEO Aaron Speach (pictured) for comment.

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