Betway Owners, Super Group, Set to Go Public via SPAC Deal
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News has come out that Super Group, which is an online sports betting holding company, is looking to merge with a special acquisition company, also known as SPAC, in order to go public on the NYSE and raise capital for a move into the American betting market. The news is that the current agreement would merge Super Group with SPAC Sports Entertainment Acquisition Corp. (NYSE:SEAH). The pre-equity evaluation on the public move is $4.75 billion.
Super Group owns some major online gambling companies like Betway and Spin. This move does signify that the holding company wants to drastically expand what it is doing. Many look at the American sports betting and online gambling market as the reason for this attempt to raise capital.
Super Group’s Plan
Super Group has made more moves than just attempting this merger. Recently, the company bought out Digital Gaming Corp, which looks like another clue for solving the puzzle. This acquisition has many experts guessing that Super Group is attempting to build a new platform for America specifically.
According to Casino.org, the company released a statement regarding the matter. “The combination with SEAH will give Super Group access to the capital markets and a strong platform to accelerate its global growth strategy, as well as expansion into the fast-growing U.S. online sports betting and gaming market,” So, if there were any questions regarding the plans, Super Group themselves have made it clear that it wants to move into the lucrative space that is American gambling.
American Market
If there was ever a time to get into online gambling, such as online casinos, poker, and sports betting, in America, it would be now. This is because more and more states are legalizing these activities as well as releasing looser and looser regulations. Currently, the biggest markets are New Jersey, Pennsylvania, and Illinois. However, over the last year, Michigan, Colorado, Tennessee, and Virginia have also launched. Not to mention that Maryland, Louisiana, and Florida all look like they could live in this coming year.
However, the most significant factor may well be the fact that New York has finally agreed to online sports betting. While licenses will be limited, whoever wins the bidding process will have skins to hand out to smaller online sportsbooks. There is no doubt that this is playing a major role in Super Group’s decision.
Super Group will have its work cut out for them as they will need to act quickly by either creating or investing in an American sportsbook. The sector is growing fast, and brands are starting to become established. There seemingly is already a “Big 3” between FanDuel, DraftKings, and BetMGM, and then there is a line for tier-2 sportsbooks such as BetRivers, William Hill, WynnBet, PointsBet, and FoxBet. The more established sports betting becomes, the easier it will be to enter, but the harder it will be to gain large chunks of the market.
What Are SPACs?
SPAC or special-purpose acquisition company is basically a company that only has the purpose of raising capital on the stock market. In essence, a company will merge with this shell company so that it can be listed on the stock exchange and raise capital. This is a newer form of going public that does not include the IPO, initial public offering, and instead gets the shares to the market in an indirect way.
