Super Group has informed investors that its acquisition of Digital Gaming Corporation (DGC) is expected to close in January 2023, allowing the New York-listed company to boost its US prospects in the new year.
Providing investors with a Q3 trading update, Super Group confirmed that its acquisition of its US partner should be completed in the next few months, whilst offering updates on several other business areas.
First announced in April 2021, the transaction was made to expand Super Group in the US, with DGC being given exclusive rights to the Betway brand in the UK. It has secured market access in 10 states in time for the acquisition to go through.
Taking its first US bet in March 2021, DGC has access to Pennsylvania, New Jersey, Colorado, Indiana, and Iowa amongst other states.
In addition, Super Group reiterated its full-year financial projections, anticipating revenue between €1.15bn and €1.28bn ($1.148bn – $1.278bn) and Adjusted EBITDA of between €200m and €215m ($199.75m – $214.73m).
It also noted the “successful” transition of the Betway sports betting and Spin online gaming brands into Ontario during the second half of 2022 as it seeks to solidify a presence in key North American jurisdictions.
Finally, Betway is in discussions with Apricot, its sportsbook provider, to “materially increase the dedicated development resources available to Betway as the exclusive licensee of its sportsbook”.
Under a potential deal, the operator would increase the spending and investment in software development for the next several quarters.
Neal Menashe, CEO of Super Group, stated: “We are taking steps to strengthen Super Group, simplify the capital structure, and better position the company for growth. In relation to discussions regarding our sportsbook, we are exploring with our long-term partner the potential benefits of ownership of the technology.
“I look forward to discussing our results and business updates in greater detail after we release third-quarter results on November 22.”
