Esports Entertainment Signs Multi-Year Deal as LAFC’s Esports Tournament Platform Provider
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Esports Entertainment Group, Inc. (GMBL) has inked a multi-year partnership deal with the Los Angeles Football Club (LAFC). GMBL has been chosen as the Major League Soccer (MLS) franchise’s esports tournament provider. Shares of the esports and online gambling company have jumped more than 153% over the past six months.
Together with LAFC, Esports Entertainment will capitalize on player imagery within the Southern California market. The company will also work with LAFC players to create custom videos that will publicize the tournaments as well as appear in the team’s expansive ongoing digital marketing efforts across all social and online channels.
Per the terms of the deal, the company will operate esports tournaments for LAFC using its Esports Gaming League (EGL) platform. (See Esports Entertainment stock analysis on TipRanks)
EGL allows live and online events along with tournaments where gamers compete and enjoy a wide range of content relating to esports and video games on a proprietary technology platform. Other services offered include full turnkey esports events, live broadcast production, game launches, and online branded tournaments.
Esports Entertainment CEO Grant Johnson commented, “We are excited to further extend our reach into MLS through our partnership with LAFC. We are excited to add LAFC to our growing roster of top-tier professional sports organizations and look forward to helping the team strengthen connections and engagement with their growing fan base.”
On May 26, H.C. Wainwright analyst Scott Buck maintained a Buy rating and a price target of $20 (78.6% upside potential) on the stock.
Buck believes that the recently-announced acquisition of Bethard Group Limited will enhance the company’s sports wagering and online gaming domain. The deal will also bring new licenses to popular esports locations, Spain and Sweden.
Overall, the stock has a Strong Buy consensus rating based on 4 unanimous Buys. The average analyst price target of $22.50 implies 100.9% upside potential from current levels.
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