Elys Game Technologies is allegedly not supporting US Bookmaking by the terms of their contract from last July’s acquisition, according to court filings.
US Bookmaking’s three founders are suing publicly traded ELYS for damages, alleging multiple breaches of the Membership Interest Purchase Agreement agreed to on July 5, 2021, 10 days before the deal was finalized. The lawsuit first was filed June 20.
Elys Executive Chairman Mike Ciavarella told he could not comment on the situation, as he is in Las Vegas addressing the lawsuit.
Details on US Bookmaking and Elys agreement
US Bookmaking’s three founders, Vic Salerno, Robert Kocienski and Robert Walker, had the chance to earn up to $41.8 million in a 50-50 cash/stock split as earnout payments based on adjusted EBITDA from 2021 through 2025. Elys paid $12 million in cash and stock up front for the purchase.