Luckbox suspends all betting activity indefinitely
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Luckbox suspends all betting activity indefinitely
Real Luck Group has indefinitely ceased operations of its esports betting platform Luckbox, the company announced yesterday in a release.
“Sorry, we’re closed” Luckbox’s homepage reads today, only allowing customers to withdraw funds after suspending all betting and player registrations.
The stark news arrives after the company failed to secure the necessary funding for its operations which were thought to arrive through an LOI last month that was later deemed “not viable.”
As a result, the company has also engaged insolvency practitioners to wind up Real Time Game Services, an indirect subsidiary which holds agreements with B2C service providers, contractors, and employees.
Luckbox will now begin restructuring its operations to focus on the company’s B2B activities – a transition expected to be completed before the end of the year. The restructuring is said to lend itself to a “better focused corporate structure with no debt and minimal cash burn.”
Real Luck Group will continue to explore other strategic options, including a potential merger, acquisition, or a capital raise to either accelerate its B2B business or restart Luckbox’s operations.
🔎 Between the lines: As noted last month, the operator’s burn rate was clearly catching up with its cash balance.
The company recorded a $2M net loss in its most recent quarter with only $580,000 in unrestricted cash left remaining on its balance sheet.
It was clear then that capital injection was mission critical for Real Luck. Unfortunately, the LOI falling through means the company will have to back track on the progress it has made this year in terms of user registrations and betting handle growth.
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