Super Group to sell B2B division of Digital Gaming Corporation to focus on B2C growth

Super Group, the parent company of Betway and Spin, has agreed to sell the B2B division of recently acquired Digital Gaming Corporation (DGC) to Games Global.

The transaction is expected to close in the second half of 2023, subject to receiving regulatory approvals in the US.

Financial details of the deal were not disclosed.

DGC’s B2B division is currently operating in Pennsylvania, New Jersey, Michigan, and Connecticut.

Super Group acquired DGC in January to accelerate its entry into select US markets and enhance its global footprint.

Super Group CEO Neal Menashe commented: “Disposing of DGC’s B2B division makes commercial sense and will allow us to continue to focus solely on our B2C growth in the United States.

“We have been using Games Global’s award-winning content for many years, and we are very confident the DGC B2B division will be in great hands.”

Plans for DGC

Super Group generated €123m in net revenue in North America in Q3 2022, accounting for approximately 40% of the company’s total revenue.

At the Q2 2022 earnings call, Super Group president and COO Richard Hasson had forecasted that DGC would bring in an EBITDA of between €50m and €70m in 2023, with a target of breaking even between late 2024 and early 2025.

However, in November, Hasson stated that the company would review DGC’s business plan and growth projections after the acquisition was completed.

Investors have responded positively to Super Group’s plans. At the time of writing, shares in Super Group were trading approximately 4% higher.

Growth of Games Global

Games Global, meanwhile, is a relatively young company. The business was established in early 2021.

In 2022, the supplier acquired the distribution business, games intellectual property, and progressive jackpot network of Microgaming.

The company is licensed in the Isle of Man, the UK, and Malta.

“The acquisition of DGC B2B is an extremely exciting opportunity, accelerating Games Global’s entry into the rapidly growing US iGaming market,” said Games Global CEO Walter Bugno.

Games Global’s portfolio includes over 3,000 proprietary games, a progressive jackpot network, over 50 partner studios, and a distribution channel servicing some 900 brands.