EEG has declared a $38.6 million impairment charge pertaining to its esports assets Helix, ggCircuit, and EGL in its Q3 2022 fiscal year financial report, which was concluded on March 31, 2022.

A method employed by organizations to completely eliminate worthless intangible assets is known as an impairment charge. These numbers are used to assess a company’s financial viability. The impairment charges are frequently examined by creditors and investors when deciding whether or not to lend or invest in an organization, or in this case to divest.

According to the report, the Chief Executive Officer of EEG, Grant Johnson, indicated that the company has been unable to generate money from its esports entities due to a lack of liquidity. He stated that there exists no pathway to good profitability from the Helix esports organization and, as such, the parent company looks to divest two of its existing centers.

“We do not see a path to attractive profitability in the Helix business given its significant overhead and ongoing capex and are currently working to divest our two existing centres.”

He also revealed that while the team is working on forecasting possible opportunities that lie in the ggCircuit and EGL entities. EEG is yet to find a way to monetize the assets.

“ggCircuit and EGL are two assets which we have not effectively been able to monetize due to liquidity constraints,” Johnson continued. “Our team is working internally to properly forecast the long-term opportunity for these businesses, which will allow us to better establish their carrying value.”

In 2020, EEG offered to acquire Helix eSports, an esports facility company, and ggCircuit, a B2B software provider with a cloud-base tournament management platform product. The deal was estimated to be worth $43 million.

The company recorded a net loss of $63.8 million as a result of the impairment charge, inclusive of its general and administrative expenses of $14.34 million. The esports and gambling organization disclosed a net revenue of $15.7 million, as the coy recorded an increase of $10.3 million from Q3 2021.

EEG’s iGaming devices were likewise more lucrative. The company’s iGaming brand Lucky Dino’s was stated to have registered a record-breaking quarterly revenue. Johnson described its business as having experienced ‘a more balanced sportsbook hold.’

Esports Entertainment Group completed its initial public offering, raising $13.6 million. In addition, after receiving a betting license in New Jersey, the business established its esports betting platform VIE.gg. The funds raised were said to be used to expand the operating capital reserves and enable it to reimburse some of its outstanding debt.

The company reported a gross profit of $8 million in its fiscal, an increase of $7.2 million from the preceding year. A GAAP loss of $34.5 million to common shareholders was included in the report.

The company is said to have sold 15 million shares of common stock and warrants to acquire 15 million shares of common stock for a total effective offering price of $1, upon which each common share is accompanied by a warrant.
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ISU to Face TBA at LoL UPL 2020 Fall Tournament

Illinois State University will take on TBA for the League of Legends UPL 2020 Fall competition on October 28. The two teams will meet on the battlefield in an epic best-of-three matchup.

TBA seem to have the upper hand in the head-to-head stakes, as they won the last meeting 2-0. ISU lead the Cloud Group standings with nine points, winning three of their five games.

TBA trail the group leaders by three points and currently hold the second position on the table. They’ve only played three matches so far, winning two and losing one.

Asia esports news

Team Zero Take on Xi’an at Streamer Carnival S2

Chinese esports organization Xi’an are getting ready to face Team Zero at the CS: GO Streamer Carnival S2 on October 28. The two sides will battle it out in a best-of-three match, with Counter-Strike betting sites picking Xi’an as the favorites.

Team Zero have lost the last three games played against Xi’an. They currently sit in fifth place on the group table with only two points. On the other hand, Xi’an could move into first position with a win, as they sit one point behind leaders LQ with four points.

Africa esports news

EPS Fortnite Predator Solo Cup Heads To Q3 Stage

The third round of qualifiers for the EPS Fortnite Predator Solo Cup will go ahead this weekend. The competition’s organizers, Goliath Gaming and Predator Gaming, plan to host the match on October 30. Registration is free.

Some 50 players have already acquired a place in the finals, which will occur at the rAge event coming up on November 8. Each qualifying round allows for only 100 spots, and players must place in the top 25 to continue to the next stage.

As the African esports calendar starts to heat up, players look forward to this year’s Fortnite esports competition with a prize pool of R2,500.

Europe esports news

EEG Plan to Go Ahead With Helix Esports Deal

The Malta-based gambling company known as the Esports Entertainment Group (EEG) recently signed a letter of intent for the buyout of Helix eSport and ggCircuit. The firm announced that the deal should go ahead before the year ends.

The US $43 million venture sees EEG acquire both organizations’ strong network ties in the gaming industry. It also takes over Helix’s player-vs-player esports betting platform, LANduel. The acquisition marks EEG’s most significant piece of business for the year.

South America esports news

Team Brazil Play Team Zero at Dota Summit 13

It looks like a battle between North and South America as Team Brazil face Team Zero for their next match at the Dota Summit Online 13: Americas tournament. Meeting in a best-of-two fixture, the Brazilians must find their form as they continue to fall down the standings.

Now in eighth position, the South American team have only managed to win one of their three matches, acquiring two points. Team Zero haven’t performed much better, winning one of their three games and drawing a game, leaving them with three points.

The last time these organizations met resulted in a 1-1 draw at the BTS Pro Series, leaving punters and Dota 2 betting sites unsure which way the fixture might go. Both teams desperately need a win, and we can expect an action-packed encounter from start to finish.

Oceania esports news

Paradox Set to Take on Lese Esports at ESEA MDL S35

Australian esports organization Paradox Gaming are looking forward to their next fixture against fellow countrymen Lese Esports. The two will lock heads in the ESEA MDL Premier S35 CS:GO competition.

Paradox Gaming are the firm favorites, with Australian esports betting sites giving them odds of $1.19 to win. They have 11 victories under their belt after playing 14 fixtures. In comparison, Lese have lost 10 of their 15 matches.

Paradox have their eyes set on making the playoffs and will undoubtedly bring their A-game, even if facing a sub-par team. As long as they start the CS: GO rounds strong, they shouldn’t have any trouble adding to their already impressive series tally.

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Esports Entertainment Group Strike Deal With LA Franchises

Major betting operator Esports Entertainment Group recently announced a deal with AEG, the company behind two major Los Angeles sporting teams. Going forward, Esports Entertainment will be the official esports tournament organizer for the LA Kings and the LA Galaxy.

This agreement will allow the company to be the exclusive provider of NHL and MLS esports tournaments for these franchises. Any future events would be conducted through the firm’s own platform, the Esports Gaming League (EGL).

Company executives intend for the deal to help their North American strategy, boosting their tournaments’ profile. Meanwhile, the teams hope that this deal will bring more opportunities for fans to have experiences with the brands.

Asia esports news

Talon Esports Raise $2M In Seed Funding

After a successful initial funding round, Talon Esports have managed to raise more than $2 million in capital. The money will be used as seed funding for Talon to continue to expand into new territories and events. Brand development is also a major priority.

Many partners invested in this funding round, with Hana Digital Transformation Fund leading the pack. Other investors include New Wave Esports, Widus Strategic Investments, and Animoca Brands. More than two dozen companies committed funds overall.

Sean Hung and United Esports’ Felix LaHaye also invested on an individual basis. Talon have grown much over the past three years, eventually finding their way to the League of Legends World Championship.

Africa esports news

Africa Esports Championship Set To Highlight African Games

African sports betting sites and esports bookmakers are thriving. The continent is one of the world’s most growth-oriented markets when it comes to esports, yet almost all of the attention goes towards foreign-developed games and assets.

It’s understandable given the marketing efforts that studios undertake for AAA releases. Instead, most African developers are independent. This means working with shoestring marketing budgets and garnering little attention. That’s why the African Esports Championship is stepping in.

This year, the AEC will feature a dedicated showcase for African games. An open invitation was extended to developers from across the continent to submit their work for consideration. Winners will receive mentorship and assistance with distribution and publishing.

Europe esports news

PUBG PCS3 Europe Group Stage Kicks Off

The group stage of PlayerUnknown’s Battlegrounds Continental Series Europe has begun. A field of 24 teams will face off over six days of play, with the teams divided across three groups.

After the group stage is complete, eight teams will be cut. The remaining 16 will move on to the finals. A dozen teams were directly invited, including TSM, FaZe, shiftW, ENCE, and Team Liquid.

The other 12 teams made the tournament through the EU West, East, and MEA Qualifiers. Some to look out for include WinStreak15, 303 Esports, AfterAlt, and PinkPonY.

South America esports news

Latam Esports Figures React To Valorant Act III

After the recent announcement of Valorant’s Act III, several noteworthy changes to the game were unveiled. These include new maps, new characters, changes to the spectator mode, and the deathmatch rules. Now, Latin American esports figures are reacting to the news.

Camila Park, a Valorant esports event organizer better known as “BoAx”, praised the Act III changes. She commented that the two-spectator mode was “horrendous” for watching tournaments. She also added that the new way will help coaches get a more global perspective.

Valorant podcaster Jose “KTN” Norambuena pointed out that multi-camera coverage is still challenging. He mentioned that the game could stand to benefit from a CS:GO-like GOTV and auto-directing feature.

Oceania esports news

Official Launch Of Tekken 7 Online Challenge Australia

The Tekken World Tour has finally arrived in Australia, with the seventh edition of the Tekken Online Challenge starting up. While the preliminary event has been ongoing since the middle of August, the main event only recently kicked off.

Players can still sign up to the open tournaments through the Tekken World Tour website. The event’s organizers have lined up many exciting exhibition matches featuring top fighting game talent from across the nation.

The Tekken Online Challenge is a series of open tournaments sponsored by Bandai Namco. They bring together the finest players in 10 global regions.

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