Esports Entertainment Group (EEG), the parent company of SportNation and RedZone, has declared that its UK operations will cease on November 30th, 2022.
Both SportNation and RedZone have attributed the closure to various factors, including the economic feasibility of running a small online gambling venture within the UK market.
Customers can continue to wager and access their accounts until November 30th. From December 7th, they will be able to log in to withdraw funds. The final closure will take effect on that date.
Following the closure, there will be an additional seven-day period 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.”
The operator has indicated its intention to retain customer data for five years after the website closure to fulfill legal and regulatory obligations.
The SportNation brand also maintains a dot.com website licensed in Malta, which has not announced any plans for closure.
SportNation and RedZone became subsidiaries of Esports Entertainment Group in 2020 when the group acquired Argyll Entertainment.
Argyle was also in charge of running Fansbet in the UK, which was previously owned by Rush Gaming and operated as a white label site through Viral Interactive.
At the time of its launch, Fansbet did not suggest that it would be closing down soon.
However, on SportNation’s frequently asked questions page, the firm provided exit information, advising customers to transfer their business to FitzDares rather than continuing to use the FansBet brand.
Concentrate on Keeping Customers
In EEG’s yearly report for the period ending June 30, the company discussed the operations of its Argyle brands in the UK, including SportNation and RedZone.
EEG stated that it intends to decrease marketing expenditures, moving towards keeping existing customers rather than acquiring new ones, and has taken actions such as leaving affiliate website Oddschecker.
“In recent months, the company has reduced marketing spending and has been focusing on keeping existing customers and reactivating past customers. We believe these efforts will have a positive impact on our operating results.”
The company also mentioned “regulatory changes” related to its Argyle brands in the UK, but if the FansBet brand continues to remain in the market, it would imply that the exit 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 responding to inquiries from the UK Gambling Commission. This is a requirement to maintain its UK operating permit after the ownership transfer.
The company continues to function in the UK, and the Gambling Commission has not issued any negative pronouncements regarding their operations.
The report additionally addresses the company’s recent financial difficulties. They stated that creditors have not yet sought to recover their outstanding debts, but they retain the ability to do so. Such an action would have a significantly detrimental impact on the company.
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