After the news about the collapse of the Kings Entertainment and Sports Venture Holdings’ agreement from last year, the B.C. online provider has now released a further update on the matter. On Monday, the Vancouver-based firm informed that its proposed business combination with SVH dating from May 24, 2022, will be officially terminated.
Kings Entertainment is a prominent online service provider for lottery, casino, and sportsbook gambling based in B.C., Canada and was established in 2005. The company is also parent to global online gaming innovators LottoKings and WinTrillions, which offer a wide range of gambling and sports betting offerings to millions of players in the industry.
Company Will be Reimbursed
The agreed business combination agreement from May 24, 2022, has now been terminated. And in relation to the news, SVH has agreed to repay the B.C. firm, the full amount of the CA$2.5 million advance made by the provider and reimburse it for CA$1.75 million of its costs and expenses which were conducted in relation to the proposed transaction.
Kings Entertainment says that it is now focusing on expansion in the broadening global lottery sector. The recently seen growth in the sector over the last year, and several billion-dollar jackpots, have incited the Canadian company to shift its focus to it. Allied Market Research calculated that the global lottery market will grow at a CAGR of 3.8% from 2023 to 2031, reaching CA$430.4 billion by 2031.
In addition to that, the supplier also reported that it has realized substantial efficiencies in operating costs over the prior quarters and aims for profitability by the end of 2023. Its finance position is even better than it was before the suspension of the SVH agreement and plans to move quickly to identify acquisitions in the current sector or even expand to the emerging AI market.
CEO of the company, Steve Budin, noted that the lottery market has demonstrated strong indicators in 2023, and the company is well-positioned to take advantage of it. He explained that the firm has laid a strong foundation for expansion by cutting costs in its operations, and will now utilize its strong exposure to accelerate international growth if a suitable opportunity presents itself.
Some of 2022’s Highlights
This year, Kings Entertainment will be looking to build on its 2022 achievements and performance which further enhanced the company’s offerings and exposure across markets. In October 2022, it reported a partnership with Native Ads Inc. This agreement allows the latter to lead a comprehensive media marketing campaign for the B.C. iGaming provider and promote it as a top gaming brand.
Other noteworthy highlights from its 2022 performance include its July 2022 report, which was a strong period for the supplier of casino services. For the said month, lottery sales increased by 18% in comparison to June 2022, with WinTrillions and Lotto Kings both accumulating a hefty CA$446,126 the prior month, while total active customers spiked by 9%.
Source: “Kings Entertainment Reaches Settlement with SVH” PR Newswire, April 3, 2023