UK online betting giant agrees $5bn US float

Posted on April 26, 2021 by Jonathan Symcox

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Super Group, parent company of some of the UK’s leading online gaming brands, is to float on the New York Stock Exchange via a SPAC merger. 

The holding company for sports betting brand Betway and multi-brand online casino offering Spin has been valued at $4.75 billion in the deal, which will see it merge with Sports Entertainment Acquisition Corp. 

SEAH is a publicly traded blank cheque company – known as a SPAC, or special purpose acquisition company – created specifically for the purpose of the deal. 

In the US, public listings via SPACs are growing in popularity as a faster way of listing a company. 

Super Group is licensed in 23 jurisdictions throughout Europe, the Americas and Africa, took in more than $42bn in wagers in the 12 months to March 2021 and currently has over 2.5m monthly unique active customers. 

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Betway currently has more than 60 brand partnerships with many teams, leagues and sport personalities across the globe. These include some of the world’s leading sports franchises, such as the US NBA teams Chicago Bulls, Golden State Warriors, Brooklyn Nets and LA Clippers; Premier League football team West Ham United; and eSports team Ninjas in Pyjamas. 

Its US growth plans will be complemented by Eric Grubman and John Collins, who it says bring with them a wealth of experience and relationships within the broader US sports and entertainment ecosystem.  

In addition, the group will continue the roll out of its offerings on a global basis including the launch in multiple new licensed territories in 2021. 

Super Group, which is headquartered in Guernsey, has also entered into an agreement to acquire recently formed gaming company Digital Gaming Corporation, which has the exclusive right to use the Betway brand in the US and has secured market access for online sports betting and gaming in up to an initial 10 US states including Pennsylvania, New Jersey, Colorado, Indiana and Iowa. 

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Neal Menashe, CEO of Super Group, said: “We have established our group as a truly global, scaled and profitable digital gaming business, delivering on our vision to bring first-class entertainment to the worldwide betting and gaming community.  

Becoming a public company will give us the tools to continue to grow our leading product and technology offering and deliver a strengthened brand-driven marketing strategy. 

“This listing will position us strongly to capitalize on the significant global growth opportunities ahead ‒ including in the US 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.” 

Grubman, Chairman of the Board of Directors of SEAH, said: “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.” 

The transaction, expected to close in the second half of 2021, will deliver approximately $450m of cash to the combined company while Super Group’s existing shareholders will hold approximately 88% of the shares within it. 

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