The worst kept secret in the global legal sports betting scene, the emergence of the US industry, is prepping to welcome a new provider to their fold. British-based Super Group has this week thrown a ton of resources behind their US expansion plans and judging by the reports, is seemingly leaving no stone unturned.
The parent company of the popular sportsbook Betway and online casino company Spin isn’t being shy about their desire to become a player in the rapidly growing US market. The company has brokered a deal with Digital Gaming Corporation to give them immediate access to markets within the US and has also signed on with Sports Entertainment Acquisition Corp. whose aim is to allow Super Group to become the latest publicly traded sports betting company on the New York Stock Exchange.
A Little Background of Super Group
Super Group is a recognizable name in the global sports betting industry, particularly in Europe. Currently, the company is licensed in 23 jurisdictions throughout Europe, the Americas and Africa. They reported more than $42 billion in total handle in the 12 months that ended March 2021 and boast over 2.5 million monthly unique active customers.
Super Group enters the US markets with zero debt and a reported $200 million in cash. The company reportedly had $1.1 billion in net gaming revenue (NGR) and $259 million EBITDA in 2020 which proves that they are a major player in the global legal betting scene.
Super Group’s top brand Betway is already a force in the global betting scene and already has a pre-existing relationship many North American sports franchises including NBA teams Chicago Bulls, Golden State Warriors, Brooklyn Nets and LA Clippers. Major European partnerships include English Premier League football team West Ham United. In total, Betway has more than 60 brand partnerships with teams around the world.
Eric Grubman, Chairman of the Board of Directors of SEAH, the SPAC company looking to take Super Group public said of their new partner: “Super Group is an online gaming and betting powerhouse with a track record of global growth and a strong balance sheet. Super Group’s core DNA is rooted in digital technology, which drives its unparalleled expertise in data and analytics. Neal and Super Group’s diverse and multi-talented global team have a great playbook for how to successfully launch and achieve profitable growth in new markets, and we look forward to partnering closely with them on this exciting next chapter as a public company.”
First, The Sports Entertainment Acquisition Corp. Deal
Super Group is looking to follow the path laid out by such US sporting giants as Rush Street Interactive, one of the two DFS giants, Genius Sports Group, Sportradar and Golden Nugget Online in becoming a publicly traded company in the US. Sports Entertainment Acquisition Corp., headed by NFL Executive Vice President Eric Grubman and former NHL Chief Operating Officer John Collins gives the US newcomer that lane and provides much-needed exposure and experience in the US market.
The “blank check company” not only provides exposure for the Super Group brand, but it will also help the British-based company generate some much-needed funds to be used in expansion efforts of not only the US legal sports betting industry but the global one as well.
Neal Menashe, CEO of Super Group, said: “This listing will position us strongly to capitalize on the significant global growth opportunities ahead ‒ including in the U.S. market ‒ enabling us to further expand our robust, loyal and engaged customer base. In Eric and John, we have found the perfect partners with expertise across sports, entertainment and public markets to help us navigate our next phase of growth.”
The Super Group/Sports Entertainment Acquisition Corp. deal is said to be for $4.75 billion and will allow for Super Group to appear on the New York Stock Exchange under the new ticker symbol “SGHC,”.
Now the Digital Gaming Corporation Deal
Super Group has made another move in order to strengthen its position within the US legal sports betting industry. According to a news release, the company has entered into a deal to acquire Digital Gaming Corp., which gives Super Group immediate market access to 10 US states. Heavyweight states Pennsylvania, New Jersey, Colorado, Indiana and Iowa are included in the deal.
Once regulatory approvals are met, DGC will gain the exclusive right to use the Betway brand in the U.S and use it in the many jurisdictions it has secured during its years of work within the US legal sports betting market. The move gives Super Group an immediate presence in the US and allows them to bypass the arduous process of gaining market access into participating legal sports betting space.
Super Group will face some stiff competition as it looks to infiltrate the US legal sports betting market but looks poised, through two strategic moves to at least make some noise. The goal is for the Betway brand to be live in the US by summer and judging by the speed with which they were able to make a North American splash, the smart money is on them doing just that.