EEG’s SportNation and RedZone to cease trading in the UK

EEG acquired the two brands in 2020.
EEG acquired the two brands in 2020.

Esports Entertainment Group says the sites are closing for a “variety of reasons”.

UK.- Esports Entertainment Group has announced that it’s closing its SportNation and RedZone brands in the UK. Both brands will cease operating on November 30. It said the sites were closing “for a variety of reasons including the economics of operating a small igaming business in the UK market”.

Users will be able to continue to use their accounts, including to place bets until November 30. From that date, they will be able to log in to withdraw funds ahead of the final closure scheduled for December 7. The operator said it will process all requests to withdraw any remaining funds over £1 by December 14.

It said that after that date “should any customer balances remain, we will continue to comply with requests for refunds of such balances to the extent required by law and in accordance with our terms and conditions”. The operator will keep possession of customer data for five years in line with legal and regulatory requirements.

EEG acquired SportNation and RedZone in 2020 in its acquisition of Argyll Entertainment, which also operates Fansbet, formerly of Rush’s Viral Interactive. There is no indication that Fansbet plans to close, nor that SportNation’s Malta-based site will close. However, curiously, SportNation has recommended that UK customers take their business to the sportsbook FitzDares.

EEG struggled last year, and it announced in May that it may not be able to remain in business. It reported revenue of $58.4m for the year ending June 30, $53.1m of that from betting brands and $5.2m from esports events and arenas. However, it reported an operating loss of $89.4m and a net loss totalling $102.3m.

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