Super Group, which is the parent company of online bookmaker, Betway is finally breaking into the US market. The UK-based group announced this after completing a merger with a blank-check acquisition firm called Sports Entertainment Acquisition Corp (SEAH.N) (Wrex, 2021). This merger is valued at a whopping deal of about $5 billion. This is a lot of money being invested into the US market.
Asides from this, Betway also announced that it had acquired Digital Gaming Corp, tapping the online sports betting and gaming market in 10 states of the US. This is a piece of great news to betters residing in the Sports Entertainment Acquisition Corp United States as Betway is one of the most renowned betting companies in Europe. Also, it will have a great impact on the US market because of the popularity and ambitions it will bring along.
![Betway_logo (1)](https://www.comparecasino.com/wp-content/uploads/2021/05/Betway_logo-1-scaled.jpg)
About Super Group (Betway)
In case you have not heard about Super Group, let me introduce them to you…
Super Group is a holding company that has several gambling brands (including Betway). They own both online casino brands and sports betting brands. And in terms of the license, the group is licensed in 23 jurisdictions around the world. They are also operating in over 20 countries including the likes of Brazil, South Africa, Nigeria, UK, amongst others (Allen, 2021).
In terms of monetary value, the Super Group brand is one of the biggest brands bringing in enormous revenues every year. So, you should rest assured that they are bringing all this money to the US market. This year, Super Group has projected a revenue of about $1.5 billion with $350 million in EBITDA. They also affirmed that they took in more than $42 billion in wages over the past 12 months. That is a lot of money! They also boast over 2.5 million monthly unique active customers.
Betway which is under Super Group has more than 60 brand partnerships with leagues, teams, and sports personalities. Some notable ones are two basketball teams playing in the NBA which are Los Angeles Clippers, Chicago Bulls, Golden State Warriors, Brooklyn Nets, amongst others (Business Wire, 2021).
Super Group’s US Plan
But how does this group plan on breaking into the US market?
As part of the transactional deal SuperGroup made with Sports Entertainment Acquisition Corp, the group will enter the US sports betting market by acquiring a company called Digital Gaming Corporation (DGC). DGC will then have the exclusive right to use the Betway brand in the United States. This will also give them access to the market coming from online sports betting as well as gaming. The deal will begin starting from 10 US states. Some of these states include New Jersey, Pennsylvania, Iowa, Indiana, amongst others (Allen, 2021).
From this transaction, Super Group is valued at $4.75 billion. This deal will provide $450 million in cash and this money is coming from the Sports Entertainment Acquisition’s trust funds (Deter, 2021). After closing, Super Group will have $200 million in cash available on its balance sheet. The Super Group stock will trade on the New York Stock Exchange under the ticker symbol SGHC. (Deter, 2021). This large stock that will be traded by Super Group will surely have a huge impact on the US stock exchange market.
Impact of Betway on the US market
What impact will Betway collaborating with DGC have on the US market?
Before this announcement, the Betway brand was yet to make any significant inroads into the fledgling US betting market. But thanks to the cooperative effort between them and DGC, they can not only break into the US market but will positively impact the betting market. This is because some US states are beginning to deregulate online sports betting and casino gaming whereby only online sports betting is allowed. Examples of these states include Illinois and Indiana.
This has created a gold rush between online betting companies to stake a claim on the US market. This will play to the advantage of Betway because of the transactional deal with DGC (which is a gaming company). This means they can provide gaming services in the states that it’s allowed, and also provide online betting services in the states that it’s allowed, and offer both services to the states where both are allowed. This is a major profit margin that will be raised which will boost the US market value (Yogonet, 2021).
Super Group FAQ
Is West Ham United sponsored by Betway?
Yes, Betway proudly sponsors West Ham United (a football team, currently competing in the English Premier League.
Who is the CEO of Super Group?
The CEO of Super Group is Neal Menashe. He is the person that announced this deal.
References.
- Business wire (2021). Super Group to Combine with Sports Entertainment Acquisition Corp. to create NYSE-Listed Global Company. https://www.businesswire.com/news/home/20210425005014/en/Super-Group-to-Combine-with-Sports-Entertainment-Acquisition-Corp.-to-Create-NYSE-Listed-Global-Gaming-Company
- Yogobet (2021). Betway has sights set on the growing US betting market. 23rd April 2021. https://www.yogonet.com/international/noticias/2021/02/23/56600-betway-has-sights-set-on-the-growing-us-betting-market?amp
- Deter Amber (2021). Super Group (Betway) IPO: Sports Betting Parent Company to go Public. Investment U. 26th April 2021. https://investmentu.com/super-group-betway-ipo/?amp
- Allen Brad (2021). Global Gambling Giant Listing in NY via a $5 Billion SPAC deal. Legal Sports Report. 27th April 2021. https://www.legalsportsreport.com/51055/betway-listing-in-us-via-spac/
- Wrex (2021). UK firm Super Group entering US Sports, online casino market. 27th April 2021. https://wrex.com/2021/04/27/uk-firm-super-group-entering-us-sports-online-casino-market/