Super Group, the UK-based owner of Betway and Spin, has officially completed its takeover of Digital Gaming Corporation, giving it a major foothold in the U.S. legal sports betting industry.
DGC currently enjoys market access in 12 states and is already live in eight — Pennsylvania, New Jersey, Ohio, Virginia, Indiana, Arizona, Colorado, and Iowa — all under the banner of the Betway sportsbook brand, which it has been licensing on an exclusive basis from Super Group.
Super Group will soon be seeing Betway going live in a ninth state with DGC's planned launch in Louisiana in the first quarter of 2023, making the Pelican State the latest to deploy the Betway Global technology platform alongside Arizona, Virginia, and Ohio.
"We are excited to officially welcome DGC into Super Group. We look forward to working more closely with the team as we apply our proven toolkit to the U.S.," said Neal Menashe, CEO of Super Group.
"With a healthy balance sheet and a consistent track record of driving profitable growth, Super Group is well positioned to enter the U.S. market, enhancing our global footprint."
The closing of the acquisition comes two days after DGC successfully launched the Betway sportsbook in the Buckeye State after Ohio officially went live on Sunday. Betway is partnered with Boyd Gaming's Belterra Park racino in Cincinnati and is also the official partner of the Cleveland Cavaliers NBA franchise.
Betway partnership with NHL key to Super Group's expansion into North America
One of the pillars of Super Group's expansion strategy for North America is the multi-year partnership that Betway signed with the National Hockey League in May 2021.
In addition, Betway has negotiated separate deals with various NHL clubs, including partnering with the Philadelphia Flyers and the New Jersey Devils.
In October, Super Group announced that its Jackpot50 gaming brand had become an official online casino partner of the Toronto Maple Leafs as well as the NBA's Toronto Raptors, giving it signage rights at the Scotiabank Arena for all Maple Leafs and Raptors home games.
"We are attempting to reinforce the Betway/Spin brand around the world," said Menasche in November during the company's third-quarter earnings call. "Spin's best-known brand, Jackpot50, enjoyed its first sports sponsorship with the Toronto Maple Leafs and the Toronto Raptors during quarter three and went live in October."
Super Group also counting on Spin to gain market share in Ontario
The growing presence of Betway in the U.S. market mirrors Super Group's ambitions for both Betway and Spin in Ontario's regulated sports betting market.
Positive initial results from Betway's August launch in Ontario were a highlight of Super Group's Q3 earnings report, which according to Menasche, had "successfully transitioned" from the grey market where it had been operating previously to the province's newly regulated market.
"Our performance there has been in line with our expectations, including the excavation and engagement of historic Ontario customers with the new Ontario-specific platform," said Menasche. "Overall, Canada continues to perform and remains profitable for us."
The global gaming operator saw Q3 sports betting revenue rise by nearly $15 million to $107.4 million, a robust 14% YoY gain over the $93.8 million reported in the same period last year.
Apricot deal next to close?
Super Group is also poised to bring its sportsbook tech in-house in light of the company's ongoing negotiations with Apricot Investments, the parent company of Microgaming — Betway's longtime sportsbook tech provider.
Super Group has already taken the option to acquire a copy of the Microgaming sports betting platform.
"We are taking steps to strengthen Super Group, simplify the capital structure, and better position the company for growth," read a November press release. "In relation to discussions regarding our sportsbook, we are exploring with our long-term partner the potential benefits of ownership of the technology."
Should this deal close in the coming months, Super Group will have taken another important step toward boosting its profitability in 2023.
