Esports Entertainment says it’s looking for a new CEO, who will be responsible for setting a new strategic direction for the group, including a possible sale of its iGaming assets.
The Malta-based company confirmed earlier this week that its CEO Grant Johnson has left the company. It also announced the appointment of Jan Jones Blackhurst as chair of the board and an independent director.
“Grant recognized the value of esports and online gambling and founded EEG on that basis,” Jones Blackhurst said. “On behalf of the Board, we wish him well. The company is looking forward to bringing in new leadership to work with Board to realize the full potential of our acquired esports businesses.”
Esports Entertainment said it had begun a strategic assessment of options for the iGaming business. This includes a potential sale due to increasing regulatory burdens and competition.
The strategic options also include a potential merger with a third-party. Esports Entertainment said it had recently received a non-binding letter of intent and is evaluating the proposal.
The combined company would focus on growing esports revenues, it said.
In an effort to cut costs, Esports Entertainment has already announced the sale of its Spanish online casino business, which is expected to close on Monday. The proceeds will be used mostly to pay down principal on a senior convertible note.
It has also announced that it is closing the Argyll iGaming operations in the U.K. due to the high costs of operation in the markets and an inability to generate profits there.
Esports Entertainment earlier this week said it has managed to retain its listing on the U.S. NASDAQ stock exchange. However, it will need to comply with certain NASDAQ requirements by the end of March next year.