The iGaming sector is witnessing a significant legal tussle as two companies, Ebet and Btobet, have initiated separate legal challenges against Aspire Global—a prominent name in the industry—bringing to light disputes stemming from acquisition deals and misrepresentations.
Aspire Global, a key player that has recently undergone a change in ownership following its acquisition by NeoGames in 2022, faces allegations from both Ebet and Btobet, with the cases lodged in distinct jurisdictions. Ebet has taken its grievances to the Eighth District Court of Clark County, Nevada, while Btobet has opted for the Business and Property Courts of England and Wales, mirroring the international reach and complexity of dealings in the online gaming industry.
The root of Ebet’s legal challenge traces back to an agreement in May 2021, wherein Ebet intended to acquire a package of B2C assets from Aspire Global, which included websites, domains, and intellectual property. Part of Aspire Global’s process involved establishing a special purpose entity called Karamba Limited to facilitate this transaction.
However, the deal has soured, with Ebet alleging they were led into the agreement based on misrepresentations made by Aspire Global. It is claimed that Aspire Global provided falsely inflated numbers of player accounts, misleading figures regarding both expenses and revenues, and inaccuracies about Aspire’s endeavors to secure an online gaming license in Germany. Specifically, Ebet accuses Aspire of fabricating its eligibility for the German license, having failed to make a fundamental payment key to the application.
Moreover, Ebet alleges that Aspire Global’s financial malfeasance extends to the way they presented their operating expenses in audited carve-out financials, purportedly persuading Ebet of the business’s value with a misrepresented annual revenue of approximately 65 million Euro. This misinformation is said to have led to a breach of representations and warranties contained within the share purchase agreement.
On another front, the legal challenge from Btobet also entails discord over a transaction—this time concerning Aspire’s acquisition of Btobet for €20m in September 2020. The claimants, co-founder entities Sousa Enterprises Ltd and Eltsar Ltd, assert that additional jurisdiction costs were incurred by Btobet in 2022 as it endeavored to expand Aspire into new territories. The legal contention is that Aspire did not adequately remunerate Btobet despite these increased expenses, thereby breaching obligations tied to earnout provisions stipulated in the Special Purchase Agreement.
The burgeoning disputes encapsulate the complexities of mergers and acquisitions within the dynamic and highly regulated iGaming industry. Both legal challenges highlight the importance of due diligence, transparent dealings, and the adherence to contractual obligations. The repercussions of these legal entanglements could have far-reaching implications, not only for the entities involved but also for the perception of trust and stability within the iGaming sector.
As the cases proceed through legal examination, the integrity of corporate transactions and the clarity of communication within high-stakes deals are under scrutiny. The outcomes of Ebet’s and Btobet’s challenges may potentially set precedents and influence the due course of future mergers and acquisitions in the global gaming and betting marketplace.
For now, the industry observes keenly as Aspire Global strives to defend its position and reputation amidst the unfolding disputes raised by Ebet and Btobet, anticipating the ripple effects these cases may generate throughout the sector.
