Online sports betting brand Bet99 is one step closer to a public stock market listing following a go-ahead from a Canadian-based exchange.
Kings Entertainment Group Inc. announced on Monday that it had received a conditional approval from the Canadian Securities Exchange (CSE) in connection with the company's planned merger with Sports Venture Holdings Inc. (SVH), the parent company of the Bet99 brand.
SVH and Kings announced a deal in May that would combine the two companies into a single firm that will have its shares listed on the CSE, allowing more investors to gain exposure to the Bet99 online sportsbook and casino business.
Familiar faces
Vancouver-based Kings added that it has called a shareholder meeting for October 25 to seek investor approval of the Bet99 combination, among other things. The online-gambling company’s board of directors has already approved the business combination and is recommending shareholders do the same.
“We hope to close this transformational transaction shortly following our shareholder meeting,” said Steve Budin, CEO of Kings Entertainment, in a press release.
Bet99 launched in 2020 and has targeted the Canadian market, including sports betting in Ontario, striking partnerships with well-known athletes such as Georges St-Pierre and Auston Matthews. Advertisements for the brand’s free-to-play website have appeared on Canadian television starring those athletes, earning Bet99 name recognition.
In May, Kings and SVH referred to Bet99 as "one of the largest online sport and casino betting websites that accept players from Canada," and said it has handled more than $1.2 billion in wagers.
Wanna play tonight?! @Bet99Sportsbook pic.twitter.com/aEJTnLEb63
— Georges Laraque (@GeorgesLaraque) September 26, 2022
While Bet99 has been considered a “grey” market sportsbook in the country, as it accepted action without being regulated by a provincial government, it was recently issued an internet gaming operator registration by the Alcohol and Gaming Commission of Ontario (which was a closing condition for the business combination).
The registration tees up Bet99 to launch soon in Ontario’s regulated market for iGaming, joining more than 20 other online sportsbooks that have legally gone live in Canada’s most populous province since April.
Meanwhile, the CSE listing could allow Bet99’s owners to tap capital markets for their future funding needs. If Kings shareholders do sign off on the merger with SVH and the deal goes through, it’s expected the new, publicly-listed company will be renamed Interactive Entertainment Group Inc.
Kings said Monday that a recent review by management and auditors revealed "certain errors" in interim financial statements filed in connection with the deal. The statements have now been amended in what the company views as a non-material way.
"Merging with an internationally recognized online betting veteran such as Kings is a natural next step for SVH," said Jared Beber, CEO of Sports Venture Holdings, in a May press release. "Bringing the Bet99 brand to the public capital markets, through Kings' CSE and OTC listings, will not only support expansion by engaging a much broader investor base, but will also build the Bet99 brand with an even wider audience of betting enthusiasts.”
