Scientific Games (SG) announced that it had reached terms with Endeavor Group Holdings to sell its sports betting platform OpenBet in a cash-and-stock deal valued at $1.2 billion.
The deal will see Endeavor pay $1 billion in cash to SGC, along with another $200 million in Endeavor Class A common stock. The deal is now set in place, and pending all regulatory approvals, will close in the second quarter of 2022.
OpenBet is one of the world’s leading betting tech companies. It offers technology and content to some of the leading sports betting operators worldwide. OpenBet software is currently used by 75 major customers globally and is the leading B2B sports betting partner in the US, UK and Australia.
“This transaction represents the culmination of a thorough process to divest OpenBet in order to maximize value for our shareholders and rapidly advance our vision to become the leading cross-platform global game company,” said Barry Cottle, CEO of SG.
“The transaction is a significant milestone towards optimizing our portfolio and de-levering the balance sheet to enhance our financial flexibility. It will position us to invest both organically and inorganically in key growth areas, particularly in content and digital markets.
“We are delivering on our promises and executing on our strategy to transform our company and unlock significant value for employees, customers and shareholders.”
Why OpenBet is so valuable
OpenBet is one of the leading sports betting technology companies in the world, with 25 years of providing innovation and excellence in the industry. SG prides itself with OpenBet’s 100% uptime in all key sporting events.
At this time, 40% of all US sports bets are placed through the OpenBet platform, while the product has experienced a growth rate of 300% in Canada over the last two years, taking over some 80% of the Canadian sports betting market.
Some of the biggest OpenBet clients include major US sportsbooks. They include BetMGM, Caesars Entertainment, DraftKings, FanDuel, FireKeepers Casino, Golden Nugget, Hard Rock Digital, PointsBet and WynnBET.
OpenBet’s international clientele list includes betting operators Betfair, Betfred, Betsson, Coral, Ladbrokes, Paddy Power, Sky Bet and William Hill.
This makes the acquisition of OpenBet a huge success for Endeavor, who will aim to improve the product further and continue offering excellence to the existing base of international clients.
“OpenBet has built an incredible sports betting suite anchored in its best-in-class betting engine and now including expanded content, services and products for sports books and fans,” said Endeavor CEO Ariel Emanuel.
“This capability set is the ideal complement to our IMG ARENA sports betting business, which works directly with sports rights holders. We look forward to growing these businesses together to capitalize on the strong secular tailwinds in the sports betting ecosystem.”
SG has recently grown lottery ties in MI, PA
Last November, SG was awarded an Internet Compliance Assessment Program (iCAP) certification for its iLottery platform in Pennsylvania.
iCAP certification is considered the gold standard in the US and shows that SG meets requirements established by the National Council on Problem Gambling (NCPG).
Also that month, the Michigan Lottery extended its agreement with SG for its cloud-based gem|Intelligence software. The Lottery said the relationship management (RRM) platform was an important factor in increasing instant game sales.