On January 24, Esports Entertainment Group Inc. (GMBL) announced receiving approval for commencing betting operations in New Jersey. Consequently, the stock advanced by a further 6.23% at the last in the premarket, on Tuesday.
In the previous trading session, GMBL remained bullish with a gain of 6.64% at its close of $2.73. Following the announcement, the stock was trading at $2.90 per share in the premarket, at the time of writing.
The online gaming platform, Esports Entertainment Group Inc. was founded in 2008. Currently, the company has a market capitalization of $57.32 million with 22.39 million shares outstanding. Furthermore, GMBL currently stands at a year-to-date loss of 22.22%, while it lost 67.84% last year.
New Jersey Betting Operations Approval
According to the announcement, an Order approving Transactional Waiver from the Director of the New Jersey Division of Gaming Enforcement was granted to the company. Pursuant to the Order, the company can now commence betting operations in the state. Hence, GMBL has become the first esport operator to receive New Jersey Transactional Waiver.
After a five-day ‘soft play’ period, the company intends to launch its VIE.gg betting platform. Moreover, the ‘soft play’ period is expected to begin on Tuesday afternoon, which will uphold some limitations for proper regulatory operations.
GMBL’s Preferred Stock Dividend
On January 5, the company announced the declaration of monthly dividend for its 10.0% Series A Cumulative Redeemable Convertible Preferred Stock. Therefore, GMBL’s board has approved a monthly dividend of $0.08 per Series A Preferred stock share for January, February, and March 2022. Additionally, the 15th of each of the three months will be the record date for each dividend with the 31st of each month being the payment date.
Partnership Renewal
In addition, the company also announced its partnership renewal on January 05, 2022. The company and its EEG Labs brand have renewed their partnership with Take-Two’s NBA 2K League. Currently, the company is working on the season’s Combine and Draft.
GMBL’s Fiscal Q1 2022
On November 15, the company reported its financial results for the first quarter of fiscal 2022, which ended on September 30, 2021.
In Q1 FY2022, the company had net revenue of $16.4 million. Thus, showing an increase of $16.2 million from the year-ago period.
Additionally, GMBL incurred a GAAP net loss of $0.5 million in Q1 FY2022, against $1.8 million in the same period of fiscal 2021. Resultantly, the net loss per share was $0.03 and $0.15 in Q1 of fiscal 2022 and 2021, respectively.
