Month: April 2022

Of the €51.3m consideration for 100% of Sportnco shares, €27.8m has been paid in cash and the remaining €23.5m has been paid through 12,623,400 in GiG shares at a share price of NOK18.08 each. This is equal to the volume-weighted average price of GiG shares for the previous 10 days of trading.

Following the deal, Sportnco retains €18.6m of its existing long-term loans.

The cash part of the acquisition was partly financed by GiG’s agreement with SkyCity in December 2021, where it was agreed that SkyCity would invest €25m in GiG through a share issue of NOK18.00 per share. This is equal to 13,487,500 new GiG shares.

GiG has now issued 26,110,900 new shares to Sportnco and SkyCity shareholders. The shares issued to Sportnco are subject to a six-month lock-up period before they may be sold.

Under the deal, Sportnco shareholders may also be entitled to an earn-out payment of up to €11.5m per year based on the combined company’s performance across 2022 and 2023.

GiG first signed a special purchase agreement to acquire Sportnco on 22 December 2021.

“It is with tremendous excitement that we now step forward into the next chapter in GiG’s history,” said Richard Brown, CEO of GiG. “The team at Sportnco have built a tremendous business, one that is highly complementary to GiG’s offering both in product but also addressable market increase, and now the work begins to realise the truly existing growth opportunities that the business combination can pursue.

“We welcome both the owners of Sportnco & SkyCity as shareholders and the staff of Sportnco into GIG organisation and now move forward with full focus on the execution of the post-merger integration plan.”

In considering the effect of the deal on its 2022 outlook, GiG projects that the combined businesses could generate between €87m and €93m in revenue and €30m to €35m in earnings before interest, tax, depreciation and amortisation (EBITDA) throughout the year.

“Together with all the teams and shareholders who have built the success of Sportnco and Tecnalis, we are extremely proud of the journey we have accomplished since 2008, and of our integration today into the GiG group,” said Hervé Schlosser, CEO and founder of Sportnco. “I look forward to opening this new chapter as I am confident that, together, we will offer stronger technology solutions for our customers in the fast-growing regulated markets.”

GiG’s revenue grew by 28% in its full year 2021 results. Media services continued to make up the vast majority of GiG’s overall revenue, bringing in €45.0m.

The sportsbook will include “a comprehensive list of competitions, markets and events”, with official data from events including the Premier League, ATP Tour, NBA and NFL.

The product can also be localised for targeted audiences using curated content and a translation service.

“Our team has worked tirelessly over many months to build a product we feel highlights our aim of being the leading content provider within our sector,” vice president of sportsbook Gareth Crook said. “The addition of our sportsbook product is a further step along in our mission and we intend on adding a high quality and trustworthy product.

Crook added that  operators have already shown signs of interest in the sportsbook.

“We have an experienced and market-oriented team driving us forward and we’ve already had significant interest expressed in our Sportsbook from multiple markets,” he said. “We cannot wait to bring great betting experiences to players around the world.”

Given that the supplier also offers slots, live casino, bingo and virtual sports, chief business development officer Yossi Barzely said the move means Pragmatic can now offer a “one-company solution” for operators hoping to offer both betting and gaming.

 “The launch of our Sportsbook marks an incredibly proud moment for Pragmatic Play,” he said. “We are not shy of adding new verticals to our offering if we believe we can be a differentiator, and by entering the sports betting space we’re now able to offer a complete one-company solution for operators looking to establish themselves or progress to new heights.”

The deal will run across four competitions, with coverage featured on betting television channels SIS and Racing Post Greyhound TV.

The competitions will feature 48 runners, with a first prize of £10,000, and will take place at the Oxford Greyhound stadium.

Additional events will also take place at Towcester.

“It is fantastic news for everyone involved in greyhound racing that Bet365 have decided to expand their sponsorship portfolio into greyhound racing, and we are delighted that they have chosen Towcester and Oxford to partner with,” said Nathan Corden, representative of the Oxford Greyhound and Towcester stadiums. “They have committed to four category 1 events with the Bet365 Empress Stakes in September and Bet365 Puppy Oaks in November headlining the action at Towcester.”

“Bet365 will also champion the return of big-time racing at the eagerly anticipated reopening of Oxford stadium in the second half of 2022 with new competitions including a new six-bend Bet365 Challenge Cup.”

The deal marks Bet365’s first greyhound racing sponsorship.

“We are delighted to be able to support competitions across UK greyhound racing and we are confident that our customers around the world will enjoy the top quality racing and betting opportunities as a result of our long-term commitment,” said a Bet365 spokesperson.

“Greyhound racing is integral to our product offering and this sponsorship showcases the commitment we have to the sport as well as the tracks and the people involved.”

The Metric-Lacerta partnership will aim to bring together skills in technology development and deployment, advanced customer analytics and automated pricing systems to “set a new standard” in online sportsbooks managed services. 

Lacerta was founded as a standalone entity by a team from London-based sports betting consultancy Starlizard, with expertise in sportsbook operations, technology and analytics.

Metric Gaming also specialises in sportsbook technology and holds licences in New Jersey, Colorado, Pennsylvania and Michigan 

“The powerful combination of our technology and Lacerta’s pricing and analytical excellence is a compelling alternative for those operators looking to build or buy their own sportsbook platform.” Metric Gaming chief executive Keith Hayes said.  

“As a Vegas headquartered company, we are particularly excited at the opportunity this creates for us to better serve the North American market.” 

Lacerta Sports founder and chief executive Steve Edery added: “The companies share a vision of how the sports betting market should operate, by combining Metric’s advanced sportsbook platform with our best-in-class pricing and analytical capabilities we believe we can reshape the online sports betting market.”

The operator also noted that this figure was 85% of the total it recorded in 2019, before the Covid-19 pandemic had a major impact on its ability to do business.

Q4 of 2021 was the first quarter of operation of Nueva Codere, the new business created after creditors took control of the original Codere business due to mounting debts.

Looking at revenue by market, Spain brought in €42m, which was 31.6% more than in 2020, and close to 90% of the total recorded in 2019.

In Italy, revenue grew by 50.0% to €75m, which Codere noted came despite the introduction of a mandatory “Covid passport” to enter its facilities.

In Mexico, revenue more than doubled to €54m, though this was still 26% less than Q4 of 2019’s total.

“The recovery in this market has been slower than in other geographies due to the continuity of operating and capacity restrictions, as well as the country’s slow macroeconomic recovery,” Codere said.

In Argentina – where recovery was again impacted by macroeconomic effects – revenue was €66m, which was 13% short of Q4 of 2019’s figure.

Revenue from Uruguay increased by 6% to €12.6m while revenue from Panama doubled to €16.5m. In Colombia, revenue came to €4m.

Looking at Codere’s remaining online business, revenue was up 10% from 2020 and 46% from 2019. Much of the online operations of the pre-restructuring Codere were spun off into Codere Online, which went public on the Nasdaq exchange through a SPAC merger last year.

In addition to reporting its results, Codere announced the appointments of Antonio Zafra as corporate director for legal and compliance and Fernando Pombo, corporate director for strategy and corporate development.

Zafra is an experienced lawyer, having held legal and compliance roles at CaixaBank and IberiaBank, as well as also serving as chief of staff for the Undersecretary of Spain’s Ministry of

Economy.

Prior to joining Codere, Pombo was chief financial officer of healthcare group Omint, while he has also worked in consulting for Arthur Andersen and Ernst & Young.

The accreditation means that Rush Street Interactive’s BetRivers.com and PlaySugarHouse.com sites have been approved by the RGC, where a panel of independent responsible gaming specialists review responsible regulatory requirements.

The operator announced the accreditation at the end of Problem Gambling Awareness Month, running throughout March.

“RG Check is a clear demonstration that an operator prioritizes and embeds responsible gambling into the core of its operations. RGC commends BetRivers.com and PlaySugarHouse.com for achieving RG Check Accreditation,” Shelley White, CEO of the Responsible Gambling Council said.

“This achievement represents RSI’s commitment to transparency, player safeguards, duty of care and continuous improvement, as well as contributes to creating a culture of responsible gambling and sustainable play.

“RG Check is an invaluable tool for managing risk and increasing the effectiveness of RG programming. RGC is proud to provide continuous support to RSI’s harm minimisation efforts.”

Rush Street Interactive is currently live in 13 states across Columbia and the US. So far in 2022, the operator has launched online sportsbooks in New York and Louisiana with plans to go live April 4 in Ontario, Canada.

“Receiving RG Check Accreditation is a testament to our commitment and execution of RSI’s corporate social responsibility strategy, which includes the continued implementation of the Company’s responsible gaming initiatives,” said Richard Schwartz, chief executive officer of RSI.

“We want to ensure our valued customers and employees are equipped with the tools and resources necessary to help ensure a culture of safe, fair and fun gaming experiences.”

Gross gaming revenue from sports betting was 88.5% higher than $10.4m in February 2021 but was 43.4% lower than the $34.6m reported by the Colorado Department of Revenue in January this year.

Official figures also showed $19.6m in revenue was generated from online sports betting, while retail sportsbook posted a loss of $36,124 for the month.

Turning to handle and consumers wagered a total of $440.5 on sports in February, up 65.3% from $266.5m last year, but 23.2% behind the record $573.5m spent in January this year.

Some $434.9m was bet online during the month, while the remaining $5.6m was spent at retail sportsbooks.

Professional basketball was again the most popular sport among Colorado consumers, drawing $155.6m in bets, ahead of college basketball on $68.2m and American football at $31.4m.

Players won $420.9m from sports betting, while the state was able to collect $314,731 in sports betting taxes.

The Parx brand will promote responsible gaming consumer education at its sportsbooks, via its BetParx app and on its digital channels.

Launched in 2019, the campaign promotes four key principles of responsible sports betting including setting a budget and keeping to it, ensuring gambling is social, knowing the odds and only wagering with trusted and licensed operators.

“Responsible gaming is an integral part of Greenwood Racing’s sports betting strategy,” Parx chief marketing officer Marc Oppenheimer said. “We’re excited to extend our long-standing commitment to responsible gaming consumer education through this partnership with the AGA.”

AGA senior vice president Casey Clark added: “The AGA is thrilled to welcome Parx Casino and BetParx as Have A Game Plan campaign partners. The expansion of legal sports betting options—to 130 million Americans today—reinforces the importance of bringing together as many voices as possible to educate consumers on responsible wagering.”

Parx joins campaign partners from across the gaming industry such as Barstool Sportsbook, BetMGM, DraftKings, Delaware North, Entain, FanDuel, MGM Resorts International, Penn National Gaming and Rush Street Interactive.

The AGA has also secured the support of sports and media properties such as Nascar, the National Hockey League, the Ultimate Fighting Championship and golf’s PGA Tour.