Hilco Streambank, a market leading advisory firm specialising in intellectual property, is  inviting offers from interested parties for the sale of a number of assets of EBET Inc and its subsidiaries.

EBET is a technology company that operates online gaming brands. Bids are due by 30 July and the auction for the assets is scheduled to take place on 1 August.  EBet also operates seven online casino and sports betting brands, all of which have a large European player base.

EBET’s portfolio comprises brands such as Karamba, Hopa, Griffon Casino, BetTarget, Generation VIP, Dansk 777, and Scratch2Cash. These brands, which offer a broad spectrum of gaming and betting options, generated an estimated revenue of around $21.0 million in the last twelve months as of March 31, 2024. In the calendar year 2023, an average of approximately 18.4k players per month placed a bet, with the average initial deposit being around €127.

Richelle Kalnit, the Chief Commercial Officer of Hilco Streambank, commented, “The acquisition of these assets provides a unique opportunity for a buyer to penetrate the fast-growing online gaming market and build on the success of the brands by focusing on and/or re-entering specific markets, reactivating the extensive player database, and enhancing software and marketing operations.”

A buyer participating in the foreclosure sale could potentially acquire a variety of assets and rights. These include intellectual property rights such as trademarks, domain names, patents, and copyrights. The buyer may also gain access to customer and transaction data for over 925,000 users, as well as the code for the front-end of the website. Additionally, the purchase could include accounts and contracts related to marketing services. The buyer may also inherit the role of plaintiff in ongoing litigation, which carries the potential for a substantial damages award. Finally, the acquisition may encompass shares in certain subsidiaries.

Let’s revisit a pending lawsuit that was previously covered by SiGMA News.

EBet vs Aspire: Examination of allegations and defence

SiGMA News previously reported that EBet filed a lawsuit against Aspire Global and their associated entities in Nevada. The lawsuit is seeking no less than 65 million Euros in damages, including compensatory and punitive damages, along with other damages to be proven at trial. The lawsuit hinges on allegations of fraudulent activities by Aspire Global and a significant breach of a prior share purchase agreement.

In the share purchase agreement, EBet procured specific B2C iGaming assets and related websites from Aspire. Concurrently, a white label operator agreement was established, detailing joint efforts in managing the acquired assets.

EBet’s allegations against Aspire are extensive, involving claims of book and record manipulation, gross exaggeration and falsification of active player data, and a significant failure to uphold necessary operations in Germany. These actions are viewed as breaches of the agreement terms.

EBet argues that Aspire materially violated its duties under the operator agreements. These violations extend beyond record falsification to a variety of actions that EBet contends breach the contractual obligations.

Beyond the primary fraud and contract breach claims, EBet’s legal action includes other causes of action. These could encompass industry regulation violations, potential damage to EBet’s business reputation, and any other pertinent legal grounds that may surface during the trial.

EBet’s decision to pursue legal action marks a significant stride in seeking compensation for the alleged damages resulting from Aspire’s actions. The legal process will progress as both parties present their arguments and evidence, with the final judgment determining the outcome of this intricate and contentious dispute.

The complex network of legal proceedings, defense preparations, and potential trials sets the stage for a contentious legal drama with extensive consequences, making it an even bigger point of interest within the gaming industry, with the foreclosure of EBet’s sale of assets.

SiGMA News reached out to EBet for comments. However, EBet expressed their preference not to comment. As of the time the article was published, no response had been received.

SiGMA East Europe Summit powered by Soft2Bet, will take place in Budapest from 2-4 September 2024.