EBET Announces Corporate Restructuring, Confirms Esports Retreat
EBET, a Las Vegas-based wagering technology firm, has announced an intense corporate restructuring plan. Reportedly, EBET seeks to drive up a positive EBITDA run rate beginning August 2022, and to do that, the leadership team has identified several key areas of improvement. This news comes just days after rumours circulated that EBET would be making a split from esports, instead focusing its attention more acutely on sports betting and online casinos.
EBET, formerly known as Esports Technologies, completed a rebranding process at the start of 2022 that paved the way for this overhaul. By the end of the year, EBET is projecting considerable growth, driven chiefly by the changes it seeks to make as a part of this corporate restructuring.
EBET Set To Escalate
Following the rebrand in 2022, EBET went from strength to strength, publishing a report that detailed revenue growth in Q1 of 2022 of more than 166%. It went on to form a partnership with Incentive Games, which was a deal to bolster EBET’s online casino offerings, a sector that the firm now wants to focus on quite heavily. As 2022 pushed on, EBET also revealed that it had been working on a ‘next-generation’ odds and modelling feed system.
There were several key areas identified in the report published by EBET, Inc, which will both ‘escalate and enhance’ the business:
- Re-aligning resources to escalate and expand its focus to iGaming
- Optimizing the efficiency of marketing campaigns
- Generally reducing the operating costs of the business
- Reducing investment in non-revenue-generating esports products
- Elimination of non-material contracts
- Reducing the total number of employees and contractors by approximately 54%
Of course, no restructuring effort is without its victims, and judging by the list above, EBET’s workforce will take a considerable hit. In this current economical climate, many organisations are thinning out their resource herd where possible, as pursestrings tighten on a universal level. As the breakdown above acknowledges, EBET will reduce its investment in esports products, pulling back and focusing instead on iGaming.
All The Way Up
However, despite the winding down of certain resources, EBET, Inc still predicts growth in new markets. For instance, there is a planned expansion to Brazil, and in time, the firm predicts it will begin trading in the Netherlands and certain provinces in Canada. There are also planned expansions and upgrades in store for some of EBET’s key platforms, such as Karamba, as well as the launch of a new affiliate platform.
In a statement, the CEO of EBET, Aaron Speach, spoke highly of the firm and its goals:
We are on a current run rate to achieve positive EBITDA this month and feel that we have reached a major inflection point for EBET’s business. I have never been this excited about EBET’s future for our executive team and our shareholders. We are seeing significant scalable gains and look to continue the path to increase profitability and shareholder value. We encourage everyone to join us on our conference call today to discuss all of our exciting developments.
There’s a long year ahead – let’s see how it plays out for EBET.