EBet says that the upcoming auction for the sale of EBet’s assets is a significant event and therefore warrants a detailed explanation. A spokesperson for the company said that its crucial to understand that this auction is not a signal of business disruption or discontinuity. On the contrary, it’s a strategic move designed to ensure the smooth and uninterrupted operation of the business.

once again reached out to EBet, and this time, EBet provided an in-depth explanation about the rationale behind its impending auction of assets.

EBET, Inc. engages in the provision of online gambling platforms focusing on internet gaming including casino, sportsbook, and electronic sports events. It operates under the following brands: Dansk777, Hopa.com, Karamba, Griffon Casino, Scratch2Cash, and BetTarget. The company was founded by Aaron Speech (pictured above) in September, 2020 who is also the CEO. It is headquartered in Las Vegas, NV.

SiGMA News was assured that EBet’s operations are projected to continue seamlessly, without any interruption, right up to the auction date. The primary objective of this auction process is to close a sale immediately at the auction, thereby ensuring the continuity of business operations without any changes or interruptions thereafter.

Assuming a successful of substantial value. This implies that the corporate operations of EBet, Inc. are likely to cease.

According to EBet, the auction is a strategic move to sell its assets and certain subsidiary equity as a collective, ensuring the continuation of business operations under new ownership. Despite the cessation of EBet, Inc.'s corporate functions, the business operations are expected to continue seamlessly. This auction signifies a change in ownership, not a disruption of business operations.

The anticipated outcome of the pending auction is the continuation of business operations under new ownership. This means that the new owner will replace EBet, Inc. Therefore, any operations following the auction will occur independently and separately from EBet, Inc.

In essence, this auction is a strategic manoeuvre aimed at ensuring the continuity and stability of the business operations while transitioning the ownership from EBet, Inc. to a new entity. It’s a process designed to facilitate a smooth transition, ensuring that the business continues to operate effectively and efficiently under new ownership. This auction is not an end, but rather a new beginning for the business operations, marking a new chapter in its journey.

The route that Ebet has chosen is a more efficient alternative to any bankruptcy. Chapter 11 bankruptcies are typically expensive, take many months to finalize and are uncertain in terms of outcomes. While Chapter 7 bankruptcies typically lead to the cessation of business operations, the situation is different in this case. "Here, we’re dealing with an Article 9 process. This process is characterized by a swift timeline and is under the control of our Lender," said EBet, further explaining that the anticipated outcome will be a smooth transition around 1 August, 2024, with minimal disruptions or alterations to the business operations to ensure continuity of the business during the change in ownership

The auction that EBet, Inc. is holding is not a fragmented sale of inactive or disparate segments of the company’s assets. Instead, it involves the sale of a collective of the company’s assets and certain subsidiary equity. These components together constitute the company’s business operations. The aim is to sell these as an ongoing business concern, ensuring the continuity of operations.

Upon the successful closing of the auction sale, EBet, Inc., as a corporation, will no longer hold or control any assets of significant value. This is due to the sale of its assets. Consequently, the corporate functions of EBet, Inc. are likely to cease. However, this does not imply a cessation of the business operations.

The current business operations, particularly those involving the company’s sites, are expected to continue without interruption. This continuity is anticipated despite the change in ownership. The new ownership will replace EBet, Inc., ensuring the smooth transition and uninterrupted operation of the business.

On 1 July, 2024, a public announcement was made by Hilco Streambank regarding the auction of certain assets associated with EBet, Inc. The auction is scheduled to take place on 1 August, 2024. The assets up for auction include the equity and business operations housed within EBET’s subsidiary, Karamba Limited. This notably includes several websites such as karamba.com, generationvip.com, hopa.com, scratch2cash.com, griffoncasino.com, bettarget.com, and dansk777.com.

The auction is being conducted by EBet’s lender, with whom the company has cooperated to the extent required under the defined Loan Agreements. The auction is the culmination under the Loan Agreements by their senior secured lender, CPBF Lending, LLC.

After many months of extensions, the lender decided to commence an orderly foreclosure on EBet’s assets. This decision came after 17 June, 2024, when EBET exhausted the last forbearance period with the lender. The foreclosure process is being carried out through an Article 9 sale, a statutory procedure under the Uniform Commercial Code in the United States. This procedure allows a creditor to foreclose on a borrower’s loan default, take control of the borrower’s collateral assets, and sell them. The creditor can also use its debt as credit to bid for and purchase collateral assets.

The Article 9 process is more efficient and less costly than bankruptcy and occurs on a much faster timeline. The auction process does not intend to shut down EBET’s websites or cease its i-gaming business operations. Instead, the real value of EBet’s assets lies in the continuous operation of its sites. EBET has sufficient liquidity to continue operations through the pending auction date. All of EBets gaming websites will continue to operate without change, and player deposits and withdrawals will be taken and made in the ordinary course up to the sale.

The objective of the sale, as positioned by EBet’s lender and its advisors, is to ensure a seamless transition occurs on or about 1 August, 2024, without any disruption of operations after that. This marks a major transition for EBet, Inc., but one that is designed to ensure the continuity and stability of its operations.

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

In Ireland, amendments to the Gambling Regulation Bill have been under debate, following months of intense lobbying.

The Government of Ireland, facing what they called a "tsunami of social problems" related to gambling, decided to legislate. In 2022, Ireland's Gambling Regulation Bill started its journey through the legislative process. The reform should be enacted into law in 2024. Measures include a ban on daytime gambling advertising, the establishment of a fund aimed at combating gambling-related problems, and the creation of Ireland’s first gambling regulator.

Justice Minister, Helen McEntee, has proposed amendments to the current legislation, which have recently received government approval. Among those, one in particular has sparked controversy.

According to the amended legislation, children under 18 would now be allowed to enter premises such as racetracks where gambling takes place, provided these venues offer more than just gambling. However, minors will not be permitted to place bets. The rationale behind this amendment is to encourage venues to diversify their offerings beyond gambling revenue.

This amendment has faced criticism over concerns that it may expose minors to gambling and normalise the activity, as underage gambling is already an issue in Ireland. According to a , nearly one in four 16-year-olds gambled for money in the past 12 months, with over 15% experiencing excessive or problem gambling behaviours.

The development of the gambling law and its amendments has been eagerly anticipated by industry operators, who have engaged in extensive lobbying efforts to influence the bill's contents, and to water down some of the expected regulations.

Bookmakers,, and even charities feared potential financial losses from the new legislation. Charities like Arthritis Ireland have requested exemptions from the advertising watershed, arguing that lottery and raffle revenues are vital for their operations.

The proposed amendments aim to provide flexibility to these charities, NGOs, and sports organisations like the Gaelic Athletic Association (GAA), Ireland’s largest sporting body.

In Germany, the iGaming and gambling regulator, GGL, has recently published its 2023, marking the authority's third anniversary.

Regulation of the German gambling market dates back to 2012 with the introduction of the Interstate Treaty on Gambling. In 2021, the treaty was amended to include more regulations concerning the iGaming industry. German regulations are now a complex framework of state laws and federal laws. Online gambling is regulated at the federal level, at the exception of online casino games that are regulated at the state level. Land-based gambling (casinos, gaming halls, betting shops and lottery agents) is regulated both at the state and municipal level.

One of the regulator's main missions is to fight illegal gambling by shutting down and prosecuting unlicensed operators, and by increasing efforts towards channelisation. The GGL states that in2023 only, 1,864 websites were checked, and 438 cases of suspected unauthorised gambling or advertising for unauthorised gambling were investigated. This intense monitoring eventually allowed the GGL to close down 63 illegal operators.

GGL’s primary tool for enforcing its decisions is payment blocking, ensuring that illegal operators cannot perform payment transactions via the main payment service providers. The GGL declares that this tool has been very effective. Nevertheless, it also hopes to soon implement IP blocking, although the legal framework for this measure is still not fully established.

In preparation for Euro 2024, the regulator declares that it began preparations in 2023 and intensified the monitoring of sport-related activity and advertising.

The GGL proudly announced the issuance of 39 new licenses in 2023, acknowledging that the application process is lengthy and challenging. Each licensed operator will continue to be closely monitored even after receiving their licenses, along with the 142 operators already registered and listed on the GGL .

In the future, as a way to optimise administrative processes, the GGL could be involved in the creation process of games. "One way to speed up the application process could be to directly involve the manufacturers of the games, the development studios, in the application process for the approval of the individual games," says Ronald Benter, GGL board member. "That would speed up the process considerably."

The German gambling market has increased by 2%, according to the GGL reports. It represents 13.7 billion euros, with 22% attributed to online gambling only. Conversely, the report estimates the gross gaming revenue of the black market to range between 400 and 600 million euros.

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 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.

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.

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