Esports Mogul scores new platform deal with Walmart-backed gaming tournament
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Esports Mogul(ASX:ESH) had some good news out of the US this morning, as it looks to gain traction for its tournament gaming platform in the North American market.
The company said it’s been chosen as the tournament platform of choice for the ReWired Festival, which takes place in the southern US state of Arkansas.
The two-day festival will take place over October 21-22 this year, and uses esports to encourage interaction with the STEM (science, technology, engineering, maths) fields as well as the arts.
ESH said the deal represents a “new and repeatable revenue stream for Mogul, as the ReWired Festival represents the first in a multi-year, multi-event series”.
Commenting on the deal, CEO Michael Rubinelli said it demonstrates ESH’s ability to gain traction in North American markets. Specific revenue figures generated from the deal weren’t disclosed.
Shares in ESH initially ticked higher by 10 per cent in morning trade to 1.2c.
Research from Stockhead earlier this week showed the VanEck Vectors Video Gaming and eSports ETF (ASX:ESPO) has attracted $100m of investment in just seven months since it first launched last September.
Ahead of the October finals, the ReWired Festival will commence on the ESH platform in June with a lead-in qualifier tournament that runs until September.
The festival is the brainchild of Inclusion Companies, a US events business that has an extensive corporate network, ESH said.
As a result, the ReWired festival is backed by retail giant Walmart, and gamers will compete for a US$100,000 prize pool.
In that context, ESH said the use of its tournament platform adds material strategic value in the North American market.
“Showcasing our best-in-class tournament platform technology and services expertise with globally recognised brands assists the company in developing its sales pipeline,” ESH said.
Inclusion Companies CEO Trevor Drinkwater said the use of Mogul’s platform will allow it to run the lead-in tournament to start driving engagement with players and sponsors “months in advance of the physical event”.
For Mogul chief Michael Rubinelli, the deal reflects the ESH platform’s credibility in the US market following a period of co-development with Inclusion around the tournament structure and sponsorship offerings.
“We have made significant investments in furthering forward momentum in the North American market,” Rubinelli said.
“The opportunity to run the esports component of this event further showcases our platform to the largest brands in the country.”