Scientific Games Reaches Deal to Divest OpenBet
Scientific Games has announced that it will be divesting its sports betting division OpenBet to the talent and media agency holding company Endeavor Group (NYSE: EDR) for $1.2 billion.
The deal will be funded with $1 billion in cash and $200 million in Class A common stock. According to Endeavor, it will complement its existing position in the sports betting market, created via data specialist IMG Arena. The combination of the two is set to create a unique end-to-end solution that will deliver leagues, federations and sportsbooks with official data, video streams, content, mobile products, and betting solutions.
OpenBet employs more than 1,000 people around the world and it is focused exclusively on licensed customers and regulated markets. The product is used by several leading brands including DraftKings, FanDuel, WynnBet, SkyBet, Ladbrokes and William Hill.
OpenBet marks a strategic addition to our sports betting portfolio as we look to round out our technology and product offering for sportsbook operators and sports brands worldwide. The combination of OpenBet and our IMG Arena business will enable us to expand our footprint across the entire sports betting value chain and further capitalize on the tremendous upside we see coming from this fast-growing global industry.
Jordan Levin, the digital business chief executive at Scientific Games, explained that the combination of OpenBet’s sports betting platform with the sports rights and data from Endeavor will result in a unique opportunity to “define the future of sports betting entertainment”. He added that Emanuel’s vision for the industry was “exceptional”, which is why Scientific Games has acquired a stake in Endeavor. Last month Scientific games reported a 63.2% increase in revenues year-on-year.
Endeavor owns several media and talent agencies, including IMG and its data division IMG Arena. IGM Area works with sportsbooks, leagues, and federations to provide services such as live streaming and on-demand virtual sports.
Assuming it receives regulatory approval, the deal is expected to close in the second quarter of 2022.