Betway prepares for US expansion as acquisition of Digital Gaming Corp completes
Shares in Betway and Spin owner Super Group are trading higher today (3 January) after the firm completed its acquisition of Digital Gaming Corporation (DGC).
DGC is an online sports betting and iGaming company with market access in up to 12 US states. It is already live in eight of those states.
The acquisition will therefore enable Super Group to fast-track its entry into select US markets, which it said would further enhance its global footprint.
DGC is currently live in Iowa, Pennsylvania, New Jersey, Arizona, Colorado, Indiana and Virginia, as well as Ohio, which opened its doors to licensed online sports betting on New Year’s Day 2023.
The company also hopes to launch in Louisiana during Q1 of this year.
The business operates in all of those states under the Betway brand, which it licences from Super Group on an exclusive basis.
“We are excited to officially welcome DGC into Super Group,” said Super Group CEO Neal Menashe.
“We look forward to working more closely with the team as we apply our proven toolkit to the US. With a healthy balance sheet and a consistent track record of driving profitable growth, Super Group is well positioned to enter the US market, enhancing our global footprint.”
Shares in Super Group are up some 3% following the announcement, though its current $3.09 share price remains a far cry from April 2022’s high of over $11.
Super Group CEO Neal Menashe: “With a healthy balance sheet and a consistent track record of driving profitable growth, Super Group is well positioned to enter the US market, enhancing our global footprint.”
Thanks to its exclusive licensing deal with DGC, Betway already boasts a decent brand presence in US markets.
The brand is partnered with eight NBA teams and three NHL teams, as well as being the official betting partner of the NHL itself.
During Super Group’s Q3 earnings call in November 2022, president and COO Richard Hasson said “a much deeper dive into the DGC business plan, and forecast for growth” would be forthcoming following completion of the acquisition.
One key point for consideration will be the relative merits of running Betway on Super Group’s own proprietary tech stack – as is currently the case in Ohio, Arizona and Virginia – or using third-party suppliers as in its other live states.
That question is “something which we look forward to getting more stuck into once they [DGC] become a part of the group,” Hasson added.
Previously, during the firm’s Q2 2022 earnings call, Hasson predicted that DGC would make an EBITDA contribution of between €50m and €70m to the business in 2023. He added that the business has a breakeven target of late 2024 to early 2025.