Kings Entertainment Announces an Agreement to Merge with Bet99
Kings Entertainment, the online gaming operator, has announced a deal to merge with the SVH Group (SVH), the owners of the Bet99 brands, that will impact the Canadian gaming markets.
The planned merger between the two companies will involve a restructuring of the senior positions at Kings and Bet99. This will see Jared Beber, the current Bet99 CEO, become the CEO of the merged company, while Steve Budin, who is the CEO of Kings Entertainment, will lead the operations of its brand LottoKings in an advisory capacity.
Another senior role change is the appointment of Adam Ariv as Executive Chair, who joins from Bragg Gaming. As well as co-founding Bragg, Ariv led a change in the fortune of the company in 2021 from heavy debt to a strong balance sheet.
The combination of Kings Entertainment, a company led by pioneers of the international online sports gambling industry, and SVH, the parent company of operators of the market-leading Bet99 brand, will be transformative for the Canadian sports betting sector, Our vision for Kings has always been to build leadership positions within each of the regulated jurisdictions that we enter, and this agreement will certainly accelerate that goal within the Canadian landscape and beyond.
The Bet99 brands, launched in 2020, have seen the online Canadian sportsbook and casino achieve rapid growth in that time, with revenues of around $600k in the first year, which increased to $26 million last year. Results from Bet99 for the first quarter of 2022 indicate that revenues for this year could be around $49 million.
Merging with an internationally recognized online betting veteran such as Kings is a natural next step for SVH. 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.
This proposed merger is subject to approval from regulators in the Canadian territories, and both companies meet any legislative requirements.