GGRAsia – US$1.2bln deal sees Sci Games’ OpenBet go to Endeavor

US$1.2bln deal sees Sci Games’ OpenBet go to Endeavor

Sep 28, 2021 Newsdesk Industry Talk, Latest News, Top of the deck

Casino equipment and gaming content provider Scientific Games Corp is to get US$1 billion in cash and US$200 million in stock from a company acquiring control of Scientific Games’ OpenBet sports betting platform, according to a Monday press release.

The acquiring business, United States-listed Endeavor Group Holdings Inc, a sports and entertainment firm, will offer US$200-million worth of its Class A common stock, as well as the cash component, to Scientific Games.

Jordan Levin, chief executive of Scientific Games Digital, was cited in the press release as saying Scientific Games was showing its “commitment to Endeavor through the stock component of this deal”.

The agreement “combines OpenBet’s market-leading sports betting ecosystem with unparalleled access to sports rights, content and data across the Endeavor portfolio,” said Scientific Games’ Mr Levin.

OpenBet specialises in betting engine technology. According to the release, it processed approximately three billion bets in 2020, as well as providing trading, pricing and risk-management tools.

The transaction is expected to close in the second quarter of 2022, subject to regulatory consents and approvals, and customary closing conditions.

Ariel Emanuel, chief executive of Endeavor, was cited in the release as saying: “OpenBet marks a strategic addition to our sports betting portfolio as we look to round out our technology and product offering for sportsbook operators and sports brands worldwide.”

California-based Endeavor already has links to the sports betting platform IMG Arena.

“The combination of OpenBet and our IMG Arena business will enable us to expand our footprint across the entire sports betting value chain and further capitalise on the tremendous upside we see coming from this fast-growing global industry,” Mr Emanuel was cited as saying.

According to the release, IMG Arena works with more than 470 leading sportsbook brands worldwide to deliver official live streaming video and data feeds for more than 45,000 sports events annually.

Scientific Games’ second-quarter net income was US$109 million, compared to a US$203-million net loss in the second quarter of 2020.

In July, Scientific Games made a proposal to acquire the remaining 19 percent of equity interest – that it does not currently own– in digital gaming business SciPlay Corp.

Scientific Games had US$9.14 billion in the face value of its long-term debt as of June 30, according to its second-quarter results published in August. The group noted it had paid down US$500 million in debt since October last year.