Kings Entertainment Edging Closer to Bet99 Merger
Perhaps right on cue, new whisperings of yet another merger and acquisition deal in the online gambling industry began to circle the air mere months ago, with the latest news being that Kings Entertainment Group is close to completing a deal to take over the conglomerate Sports Venture Holdings, which owns popular betting brand Bet99.
The Canadian company is making a serious statement of intent with this move, as it also aims to make a splash in the market.
Founded by Canadian-born Swiss hockey player Doug Honegger, Bet99 is able to operate in the newly regulated Ontario market, though, up against the powerhouses of FanDuel, DraftKings, BetMGM and the rest, the chances of the brand making an impact without help are slim.
Honegger to Win Over Potential Fans?
The affinity that the hockey player may have with the local sporting market could well just help to make the brand profitable and even successful over the next couple of years, and with additional investment from a company like Kings Entertainment Group, this may propel them significantly.
With approval of the takeover already granted by the Canadian Securities Exchange (CSE), all components are essentially completed, with just last-minute provisions regarding share allocation to take into account, which was illustrated in a Kings Entertainment company press release.
There is no assurance that the CSE will provide final approval to list the resulting issuer’s common shares on the CSE. The CSE’s final approval remains subject to the company fulfilling all of the requirements of the CSE.
It is understood that until the deal is completed, Kings Entertainment chief, Steve Budin will lead the combined group in an advisory capacity.
Budin explained: “The near unanimous approval of our shareholders at the meeting shows our shareholders’ continued trust and support for management and our business strategy,” Budin commented.
“The approvals received today mark an important step towards the completion of our previously announced business combination.
“With this approval in place, we intend to proceed with a financing to ensure that Interactive Entertainment Group, the entity resulting from the business combination, is well funded and would hope to close the business combination shortly after the financing.”
Once the deal is completed, it is believed that Jared Beber (99Bet CEO), Robin Godfrey, David Danziger, Kevin Kirby, Cory Levi and Hélène Fortin will form the leadership committee of the combined entity, with Budin focusing on heading up LottoKings.
Canadian iGaming M&A Activity to Increase?
What we have seen over the last few years is a substantial number of mergers and acquisitions in the US iGaming industry due to more and more states passing legislation. This is now arguably the biggest market in the industry for takeovers.
However, following the regulation of the Canadian province of Ontario earlier this year, it has seen the market increase considerably, especially with US firms, while new Canadian companies have also sought to make an impact.
As such, this involving Kings Entertainment Group might well trigger a domino effect in the local market, while they may have further expansion plans of their own.