Lyle Berman, the co-founder of Grand Casinos Inc., is betting big on the increasing popularity of esports with Allied Esports Entertainment (AESE), a new venture created from two companies acquired from China-based Ourgame International Holdings.
The casino industry veteran is using a Minnesota-based special purpose acquisition company, Black Ridge Acquisition Corp., to buy Allied Esports International and WPT Enterprises. Berman is the director of Black Ridge, and will be AESE's chairman of the board after the acquisition is completed.
"In more than 40 years in the gaming and entertainment business, this is the most exciting opportunity I have seen," Berman said in a statement.
Under Berman's leadership, Grand Casino eventually became Lakes Entertainment. The company was based in Minnetonka, but announced in 2015 that it planned to merge with Las Vegas-based Sartini Gaming. Berman stepped aside after the transaction. The same year, Lakes sold its building in Minnetonka for about $4.69 million.
Frank Ng, CEO of Ourgame, will step down from his post to become AESE's new CEO.
Allied Esports International is already having an impact on the esports industry. The company developed the HyperX Esports Area in Las Vegas, which hosts live video gaming events and had a production facility for esports-related programming. WPT, perhaps better known under its full name of World Poker Tour, is an poker company that offers both online and televised gambling programs.
Allied and WPT will combine their respective areas of expertise to offer a variety of in-person gaming experiences and interactive services to further establish the company's footprint in the growing esports industry.
Allied will start out with a presence in Minneapolis, but will eventually move its headquarters to California, the Star Tribune reports. It will have around 100 employees. Thomson Reuters values the debt and equity deal at $213.8 million. Allied expects esports to eventually become a $11 billion industry.
