Esports Entertainment Group (EEG), the parent company of SportNation and RedZone, has announced that these brands will cease operations in the United Kingdom on November 30, 2022.
Both SportNation and RedZone have cited a number of factors, including the financial challenges of running a small betting operation in the UK market, as reasons for their closure.
Customers can continue to place bets and use their accounts until November 30th, experiencing normal functionality. Following this date, they can access their accounts to withdraw funds starting December 7th, marking the official closure.
A seven-day period will then be allocated for the operator to process withdrawal requests exceeding £1. SportNation and RedZone have stated that, “If any customer balances remain, we will continue to honor such balance refund requests as required by law and in accordance with our terms and conditions,” starting December 14th.
The operator has stated its intention to retain customer data for a period of five years following the closure of the websites, in compliance with legal and regulatory obligations.
The SportNation brand also maintains a website in Malta, operating under the domain name dot.com, which has not announced any closure plans.
SportNation and RedZone became part of Esports Entertainment Group in 2020, following the group’s acquisition of Argyll Entertainment.
Argyle was also in charge of running Fansbet in the United Kingdom. Fansbet was previously owned by Rush Gaming and operated as a white-label site through Viral Interactive.
At the time of the announcement, Fansbet did not suggest that it would be closing down soon.
However, on SportNation’s frequently asked questions page, it provided exit details and told consumers to send their business to FitzDares instead of continuing to use the FansBet name.
Concentrating on Keeping Customers
In documents filed with the Securities and Exchange Commission accompanying EEG’s annual report for the year ending June 30, the company discussed its UK operations under the Argyle brand, which included SportNation and RedZone.
EEG said it plans to cut down on marketing spending and move towards keeping existing users rather than getting new ones. It has already taken steps such as leaving the affiliate website Oddschecker.
“In recent months, the company has reduced marketing spending and has been focusing on keeping existing customers and bringing back past customers. We believe these efforts will have a positive impact on our operating results.”
The company also mentioned “changes in regulations” related to its UK Argyle brands, but the departure of FansBet suggests that it is not related to the Argyle license, which covers all three brands.
Following the acquisition of the Argyll igaming enterprise in July 2020, the firm has been addressing inquiries from the UK Gambling Commission. This is essential to maintain their UK permit due to the alteration in the company’s ownership structure.
The firm continues to operate within the UK, and the Gambling Commission has not issued any negative pronouncements regarding their activities.
This report also delves into the company’s recent financial difficulties. They have stated that their creditors have not yet attempted to collect on their debts, but the possibility remains. Should this occur, it would pose a significant threat to the company’s stability.
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