Esports betting operator Esports Entertainment Group has formed a new US-facing subsidiary, GMBL New Jersey.
The group said the new subsidiary will make its first application for a betting license in the state in the “near future” and will provide updates for each of its license applications as they are submitted.
“Today’s announcement marks yet another significant milestone and provides the market with even greater insight as to our growth strategy,” Grant Johnson, chief executive of Esports Entertainment Group, said.
“The US market represents a very big opportunity for us and thanks to the continued support of our valued shareholders, we intend to aggressively pursue it in 2020 and beyond.”
The move marks the latest in a series of expansion efforts for the group formerly known as Vgambling.
Alongside the announcement of the American subsidiary, the group said it received an additional $1.9m in funding from a public offering of securities. This followed the raising of $885,762 earlier in the month for total fundraising of $2.8m.
Also this month, the operator signed a binding letter of intent to acquire LHE Enterprises, the holding company of online betting and gaming operator Argyll Entertainment.
While terms of the deal have not yet been disclosed, Johnson noted that with Argyll generating annual revenue of around $12.0m (£9.7m/€11.1m), the acquisition would have “a major positive impact” on the business.
In addition, on 14 May, the group secured a gaming service license from the Malta Gaming Authority (MGA).
The licence will run for 10 years and allow Esports Entertainment to offer online pool betting to players.
The suspension of almost all traditional sports due to the novel coronavirus (Covid-19) pandemic has allowed for a rise in esports betting.
The Nevada Gaming Control Board has approved betting on a variety of esports events, including this year’s Call of Duty League, Overwatch League and the North America League Championship Series (NA LCS), European Championship and European Masters in League of Legends, as well as the Counter-Strike: Global Offensive ESL Pro League.