UK’s Super Group Eyes US Virtual Gaming

Another UK ‘Super’ company seeks foothold in US mobile gaming market.

For the last two decades, we’ve watched jurisdictions all over the world make regulatory moves in the online gambling space. Each time, the world’s largest digital gaming companies scrambled to secure their fair share of the latest market expansion. None have made such waves as the burgeoning US market – at least, not since the UK reorganized its legal iGaming market to operate under strict regulatory regime in 2014. Ironically enough, it has been mostly UK-based companies that are working so diligently to capitalize on the recent legalization of mobile gambling – sports betting, in particular – in the United States.

Another UK Firm Aims for US Mobile Gaming Market

According to the latest press release, Super Group (aka Super Group Holding Company, or SGHC), is the latest British firm looking to get its foot in the US door. The name Super Group name may not be familiar to you, but if you’re current on global iGaming affairs, you’ll probably recognize their top sports betting brand, Betway, or maybe their online casino portal, Spin.

To claim a share of the US pie, Super Group execs are ironing out two major deals. First, the firm announced its intentions to go public by merging with Delaware-based SPAC company, Sports Entertainment Acquisition Corp (SEAH). Once listed, Super Group seeks to avoid the hassle of applying for multi-state gaming licenses by simply acquiring Florida-based iGaming software firm, Digital Gaming Corp.

With regulatory approval, these two moves alone will grant the Betway parent immediate entry to internet gambling markets in up to 10 US states, including the major markets of Colorado, Indiana, New Jersey and Pennsylvania.

Super Group is just the latest in a long strain of European firms that have sought out the profitable path of securing a position in the growing US market. Other foreign brands that have already succeeded in this endeavor include FTSE 100 company Entain (formerly GVC), parent of Bwin, PartyPoker, Ladbrokes, Coral, Sportingbet and others; FTSE 100 company Flutter Entertainment, parent of Betfair, Fanduel, Paddy Power, The Stars Group (PokerStars) and others; and London-based William Hill, an English gambling firm established all the way back in 1934, and more recently acquired by Nevada-based casino corporation, Caesars Entertainment.

DGC Acquisition Opens Wide Door to US iGaming

Digital Gaming Corp – that’s another name you probably aren’t too familiar with, nut it’s actually one of the most widespread companies operating in the US virtual gaming market today. DGC is a premier developer of online gambling platforms, providing a complete package for iGaming operators to run a gambling website and/or app. Their services include everything from games deployment and management, to security, support, and promotional incentives.

DGC’s first major US iGaming partner was BetMGM, following a contractual agreement back in September 2020. Fast forward to their latest partnership, inked this month, in which we saw DGC rolling out its games portfolio on DraftKings. With friends like these, Super Group’s acquisition of the digital gambling platform development company will firmly plant SGHC in the center of the US mobile gaming market.

“We have established our group as a truly global, scaled and profitable digital gaming business, delivering on our vision to bring first-class entertainment to the worldwide betting and gaming community. This listing will position us strongly to capitalize on the significant global growth opportunities ahead ‒ including in the U.S. market.”

– Neal Menashe, CEO Super Group

Super Group / SEAH Merger, Before & After

Joining forces with a special purpose acquisition company (SPAC) has become an extremely popular way for international companies to gain a foothold in foreign markets. The merger grants the outside firm with an immediate listing on the SPAC’s domestic stock exchange. Being publicly listed gives a company special rights and considerations from the SEC when it comes to future acquisitions. That’s exactly how Super Group intends to streamline the necessary regulatory approval to acquire DGC.

At present (prior to these impending M&As), Super Group is a highly respected company operating out of Guernsey, England. It owns the online sports betting operation of Betway, and the online casino gaming brand, Spin. Through these iGaming products, Super Group maintains gaming licenses in 23 countries across Europe, Africa and the Americas. In the 12 months from March 2020-21, the company handled over $42 billion in wagers, from more than 2.5 million active betting customers.

Betway alone has already secured a strong presence in the global sports industry. The company has 60+ brand partnerships with leagues, teams and reputable sports personalities all over the world, including significant sponsorship deals with a number of US athletic franchises. Betway is a partner four NBA teams – the Brooklyn Nets, Chicago Bulls, Golden State Warriors and Los Angeles Clippers – as well as the English Premier League’s football team, West Ham United, and the competitive eSports team, Ninjas in Pyjamas.

SGHC Management & Future Forecast

When all is said and done, Super Group’s executive lineup will be an impressive one. The National Football League’s (NFL) former executive vice president, Eric Grubman, will assume the role of Super Group Chairman. John Collins, a former executive with the NFL and the National Hockey League (NHL), as well as former president of the Cleveland Browns NFL franchise, will fill a seat on the firm’s board of directors. Grubman and Collins are both current members of the SEAH management team.

Of interesting note, Super Group will be entirely debt-free free at closing, with cash flow of approximately $200 million on its balance sheet to play with. In its 2020 pro-forma, Super Group noted $1.1 billion in net gaming revenue (NGR), with $259 million EBITDA. The company is projecting NGR to exceed $1.5 billion with EBITDA of more than $350 million in 2021, increasing to NGR in excess of $1.7 billion and EBITDA of more than $420 million in 2022.