Sayonara, Vie.gg: Esports Entertainment Group Shuts Down Esports-Focused Betting Operations in UK, Spain, and New Jersey! 😵💫
Esports betting platform Vie.gg, operated by EEG, ceases operations in New Jersey, Spain, and the United Kingdom.
Get ready to bid farewell to Vie.gg, as the Esports Entertainment Group (EEG) is about to shut it down in the UK, Spain, and New Jersey! Yup, you heard that right! 🤯
EEG sent out an email to its customers across these jurisdictions, informing them that their sites would be active only until the end of the month (October 31, that is!), and, come November 1, 2022, they'll be pulling the plug.
"We've made the tough call to pull the plug on Vie.gg," EEG stated in the email, adding that customers can log in and close their accounts until the D-Day. záˇŐ
The Rise and Fall of Vie.gg: A Brief History 📈📉
Vie.gg has been taking bets on esports in the UK and Spain for the past couple of years. Fast forward to April 2022, and it launched in New Jersey, partnering with Bally's Atlantic City Hotel and Casino, after securing a temporary license from the Division of Gaming Enforcement earlier in the year.
But alas! EEG announced that any accounts left open after November 1 will be automatically closed, and the funds on players' balances will be returned by check, mailed to the address registered on their accounts. 💸
The Cost of Operating an Esportsbook: A Seven-Figure Nightmare 🎮💔
So, why is EEG closing down its esports-focused sportsbook operation in New Jersey, with the situation in Spain and the UK not much different? EEG's CEO, Grant Johnson, shed some light on this in an interview with NJ Gambling Sites this week.
He admitted that EEG cannot handle seven-figure costs a year for operating an esportsbook in New Jersey, and the situation in Spain and the UK isn't much better. He also explained that their capital-raising plans were derailed by the radical market turn, and by the time they got approval, "the world had changed," hence the need for restructuring to survive the storm.
"At this time, NJ, Spain, and the UK are all jurisdictions we don't have the required capital to remain active in," Johnson said, adding that the company is planning to cut costs and stockpile some cash for the rough times ahead. 💰
The Looming Liquidity Crisis: EEG's Money Woes 💸💸
Johnson also talked about the upcoming liquidity issues that EEG is facing, despite revenue growth. He revealed that the lack of liquidity has already impacted the company by not letting them fully monetize their Helix, ggCircuit, and EGL esports assets, resulting in a multi-million impairment charge.
Addressing the near-term challenges for the business, Johnson said that the lack of liquidity has already impacted the company, preventing them from fully monetizing their Helix, ggCircuit, and EGL esports assets, resulting in a multi-million impairment charge. 💸💸
A Brighter Future?
- Esports Entertainment Group (EEG), the company behind Vie.gg, is closing down its esports-focused betting operations in the UK, Spain, and New Jersey.
- Customers in the aforementioned jurisdictions have until the end of October to close their accounts, after which the sites will be shut down permanently.
- EEG's CEO, Grant Johnson, mentioned in an interview that the high operating costs of running an esportsbook, approximately seven figures annually, is a major factor in this decision.
- Johnson also pointed out that the company's capital-raising plans were disrupted due to a significant market turn, leading to the need for restructuring to survive.
- EEG is facing a liquidity crisis, preventing them from fully monetizing their esports assets like Helix, ggCircuit, and EGL, resulting in a multi-million impairment charge.
- The company is planning to cut costs and stockpile cash in preparation for difficult times ahead, focusing on restructuring and surviving the current storm in the industry.
- Johnson also expressed concerns about the looming liquidity issues that EEG is likely to face in the near future, despite revenue growth. He highlighted the impact of these issues on the company's ability to fully monetize its esports assets and thrive in the personal finance, finance, banking and insurance, fintech, wealth-management, business, and casino sectors.
