Esports betting platform Luckbox suspends operations due to funding challenges and failed merger, shifts focus to B2B
Posted : 07 October 2023
Betting platform Luckbox, owned by Real Luck Group, has taken the immediate step of suspending all betting and player registrations due to a lack of new funding and a failed merger or acquisition proposal. Real Luck Group cited difficulties in securing the necessary capital injection due to challenging conditions in the capital markets. Consequently, Luckbox's B2C services have ceased operations, and the platform is pivoting towards its B2B activities.
Luckbox, a prominent betting company in the esports sector, has been steadily growing and attracting top talent from the esports industry since 2018. Despite raising substantial investments, including $17.8 million in 2021, the company faced increasing costs and losses, with losses amounting to CAD$6.9 million in H1 2023 compared to CAD$4 million in H1 2022.
Real Luck Group had previously announced a Letter of Intent (LOI) for a potential merger or acquisition to provide initial capital by the end of September. However, this deal fell through, leading to the decision to shut down the B2C platform and reimburse Luckbox users.
The company is now planning a strategic shift towards a B2B model to reduce costs, with this transition expected to be completed by the end of the year. Additionally, Real Luck Group will wind up one of its indirect subsidiaries, Real Time Game Services Ltd.
ADD A COMMENT :
Hot Topics
User name is required Email Id is required Comment is required
ADD A COMMENT :