Esports Entertainment Group announced its second iGaming acquisition of the year, with a $30 million deal for Lucky Dino Gaming, a Malta-licensed operator.
Lucky Dino Gaming runs four brands under its Malta License—Olaspill, Lucky Dino, Casion Jefe, and Kalevala Kasion—which are all powered by proprietary technology.
The business’ tech stack includes payment servers, affiliate marketing software, a customer relationship management system (CRM) including a gamification and loyalty engine and an automated player management facility.
The $30 million fee will be financed via a debt facility provided by Esports Entertainment. Boutique investment and M&A brokerage RB Capital served as the transaction’s sell-side advisors.
“Over the past five years, Lucky Dino has evolved from a single brand white-label casino operator into a multi-brand, class-leading casino operator and technology business,” Grant Johnson, Esports Entertainment Group chief executive, said.
“In addition to further strengthening our tech stack, Lucky Dino’s assets will give us a substantial foothold in multiple new jurisdictions across Europe and Scandinavia where esports are extremely popular, and with Lucky Dino’s 30,000 monthly active casino players we will have tremendous cross-selling opportunities with our SportNation and Vie.gg betting platform,” he added.
Lucky Dino earned around $21 million in revenue in its 2020 fiscal year, and earnings before interest, tax, depreciation and amortization (EBITDA) of $3.8 million. Revenue for FY2021 is predicted to increase to $24 million, and EBITDA to $5 million, before increasing to $29 million and $6.5 million respectively in FY2022.
“Lucky Dino has generated an impressive track record of growth, reporting an 86% compound annual growth rate on revenue for the five years ended June 30, 2020,” Johnson explained.
“With opportunities to realize synergies across shared back-office functions, payment processing and more, we are in a great position to build upon Lucky Dino’s notable EBITDA performance. Ultimately, we will look to bring this exciting online casino platformt o the US in the future alongside our vie.gg esports offering,” he added.