As is often the case, there is an awful lot going on behind the scenes in the online gambling industry with the Super Group’s proposed purchase of their long term partners, Digital Gaming Corporation (DGC)
Before we delve a little deeper into the in’s and out’s of this aquisition, for those who are not aware, the Super Group is the owner of online gambling giants, Betway and Spin.
The motive behind Betways decision to purchase DGC is that it will enable them to enter the highly lucrative US betting market due to the fact that the Digital Gaming Corporation is already operating in 12 states.
It should be noted that two of those states, Pennsylvania and New Jersey are two of the most lucrative gambling markets in the US.
The details of the acquisition were first announced back in the spring of 2021 and it is only now that the full details are being released.
It should be noted that there is a slight delay in the deal being completed as the original complete estimate was the end of 2022 but that date has been moved back to January 2021.
Super Group’s projected Q3 earnings
Even the most sceptic commentators will be impressed with the potential Q4 earnings that have been announced by the Super Group.
A snapshot has been released which confirms that the previous guidance was more or less spot on with full year earnings of between €1.15 billion ($1.15 billion) and €1.28 billion ($1.28 billion).
What more, the EBITDA (earnings before interest, taxes, depreciation, and amortisation) forecast of between €200 million and €215 million is also on the ball.
Other exciting news included the statement that both Betway and Spin have been successfully transitioned into the highly lucrative Ontario market, a move that reiterates the Smart Groups plans to become a leading player in this market.
It would be fair to say that this deal will classify the Smart Group as one of the big players in the US gambling market along with big names such as FanDuel and DraftKings.
Exciting news regarding Apricot Investments
It has also been announced that Betway is inactive discussion with Apricot Investments regarding the opportunity to migrate the technical resources under the Betway umbrella
For those who are not familiar with Apricot Investments, they are also the parent company of the renowned software developer, Microgaming.
A press release from Betway confirmed their intentions, “We are taking steps to strengthen Super Group, simplify the capital structure, and better position the company for growth,”
“In relation to discussions regarding our sportsbook, we are exploring with our long-term partner the potential benefits of ownership of the technology.”
Jumpman Gaming revelation
If the news regarding the US expansion plans along with the exciting news about Apricot Investments wasn’t enough, Super Group also confirmed their plans to take a major stake in one of the most successful UK online gambling companies, Jumpman Gaming.
Jumpman Casinos are at the top of the list for many UK based online casino players and even though Super Group already holds a stake in Jumpman Gaming, the announcement of a major stake marks a major milestone for the company.
A statement from Supergroup regarding the major stake details stated the following, “This acquisition provides additional opportunities for Super Group in the UK, as well as other international markets into which Jumpman can expand using its proprietary technology,”
This acquisition must be regarded as an exciting development for the Smart Group and Jumpman casinos.
Regarding Super Groups existing arrangement with Jumpman casinos, it is estimated that it added around €7 million to the group’s revenue figures but it should be noted that the 2022 earnings announcement from the SuperGroup did not include the Jmpman revenue figures.
Source: https://www.bestmegareelsites.co.uk/all-systems-go-for-super-group/
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