Esports Betting Allies

Allied Esports is pushing into sports betting, entering a partnership with data provider GRID. As an esports event and content production company, Allied expects it can be one of the major content providers for the esports betting market, which is projected to be worth approximately $20 billion in the near future.

Bullishness on esports betting isn’t new, as last week DraftKings CEO Jason Robins said it’s when, not if, esports betting will be a “huge category.”

The news of the partnership came a day after Allied announced it had 1.6 million live views on Twitch for the six-day Allied Esports Odyssey, a Riot Games’ Valorant competition. Allied shares are up 38% this week.

Last week, Allied released its earnings report for the quarter ending in June, which included a 37.6% year-over-year decline in revenue to $4.6 million. The drop resulted in a $10.9 million net loss during the quarter, compared to a $2.8 million loss in the same period last year. Allied did pivot to hosting online events during the pandemic, something the company expects to continue.