The Elys BMG Group, a recognized operator and provider in the gaming sector, has made public their plans to sell off their Italy-facing B2C subsidiary, Multigioco. Multigioco, which is responsible for running the Italian gaming site Newgioco, is set to be sold to an undisclosed buyer, as per Elys’ statement.
Multigioco operates from Rome and through its Newgioco platform, caters to the gaming needs of Italian clientele. Although the brand does not hold a major share in the market, it possesses years of field experience. To put into perspective, Newgioco has been a player in the Italian gaming scene since 2015 and has in-depth knowledge of the region’s gaming nuances.
Elys BMG Group conveyed that the agreement to divest the B2C subsidiary will come into effect upon the certification of a notary in Italy. It was further explained by the company that in order to proceed with the transaction, a regulatory nod is required from the Agenzia delle Dogane e dei Monopoli (ADM), Italy’s monopoly regulator. Moreover, the sale of Newgioco will require approval from the Autorità Garante della Concorrenzae del Mercato, which is the Italian antitrust competition agency.
Furthermore, Elys BMG Group emphasised that the agreement execution relies upon the fulfilment of certain other stipulations as laid out in the deal.
Hindrances to Elys’ Growth due to Nasdaq Exit
Elys is an international player in the gaming sector, marking its presence across numerous continents. Back in July 2023, the company amplified its reach within New Mexico by entering into an agreement to supply a new retail sportsbook located at the Santa Claran Casino Resort in New Mexico.
In the subsequent months, Elys introduced a US-centric online and mobile sports betting brand, SportBet.com. The operator has shown optimism in tapping into the heavily profitable US market and leveraging the consistent growth of the American sports betting arena.
Even with the continual expansion of its geographic footprint, Elys had to part ways with the Nasdaq market, following a period of about eight months of trading its shares below $1. The company’s stocks, which were listed under the ticker symbol ELYS, failed to meet the minimum closing bid price, resulting in non-compliance with the market norms.
Notwithstanding the fact that the firm has been relatively devoid of debt, unlike several of its gaming industry competitors, its shares were unable to elicit investor faith.
