Industry News
Novibet to Go Public in $625M Merger
Artemis Strategic Investment Corporation, a publicly traded special purpose acquisition company, and Logflex MT Holding Limited (doing business as “Novibet”), an established and profitable technology-enabled operator, jointly announced that the companies entered into a definitive agreement for a business combination, whereby Artemis will merge into a new wholly-owned subsidiary of Novibet in a transaction based on Novibet’s pre-transaction enterprise valuation of $625 million. Following completion of the transaction, Novibet’s ordinary shares will be listed on the Nasdaq Stock Market. Artemis founders and existing Novibet stakeholders will hold approximately 75% of the combined company at close.
The proceeds from the business combination and expected ongoing positive cash flow growth from existing operations are expected to favorably position Novibet to execute on a multi-pronged growth strategy that will grow its presence in the total addressable market (TAM).
Holly Gagnon, Chairperson and Co-Chief Executive Officer of Artemis, said: “Novibet has a strong record of success developing a superior technical platform to address the global iGaming opportunity in a manner that delivers profitable financial performance and positive cash flow. This record, combined with its demonstrated ability to successfully and profitably enter new markets as well as the significant opportunity to leverage its competitive advantages in new markets, including in North America, aligns with our original investment thesis and makes Novibet an ideal partner for Artemis.”
“Novibet’s innovative and wholly-owned technology platform and expansive suite of iCasino games and products have helped establish it as a successful iGaming and sports betting operator in the fast-growing Greece market and is helping to drive profitable market share growth in its other markets. Over the last three years, Novibet has consistently grown iGaming and sports betting users while also increasing the number of bets or hands played per user, resulting in a nearly 69% increase in the twelve-month value of each user to $617 in 2021 when compared to 2019.
“We expect the available growth capital and ongoing positive cash flow growth from Novibet’s current operations, coupled with our own substantial industry expertise, will provide a significant benefit to Novibet’s efforts to continue to grow share in its existing markets and simultaneously address new markets, including the large North American iGaming and sports betting opportunity along with the Latin American market. We are confident that Novibet’s proven, efficient, digital-focused customer acquisition strategy and depth of content offerings will enable it to deliver continued profitable growth as it launches its North American offerings beginning early next year.”
George Athanasopoulos, Chief Executive Officer of Novibet, said: “Novibet has always focused on generating revenue growth that delivers positive cash flow. As we move closer to launching in additional markets where we can leverage our product and technology advantages, that focus will not waver. Our proposed combination with Artemis will enable us to both accelerate growth in our existing markets and efficiently enter newer markets. We see a significant growth opportunity in North America as our planned launch of operations in the US, Canada and Mexico will significantly grow our TAM with our expected initial market access agreements for seven states enabling us to reach 14% of the U.S. population. Furthermore, with approximately $135 million of expected unrestricted cash (assuming no redemptions) and positive cash flow from operations, we will be well-positioned to opportunistically pursue accretive acquisitions that can further grow our revenue and profitability. We believe our execution on these strategies will result in consistent cash flow growth which, combined with our new access to the U.S. financial markets, will help us to continue to invest in growth opportunities and drive significant long-term shareholder value.”
Bragg is going to attend the SBC Summit North America taking place at the Meadowlands exposition center, New Jersey in May.
“See you in the Garden State to discuss how Bragg’s full-service suite of market leading iGaming content and technology solutions can be tailored to suit the demands of the U.S. market. Connect with members of the team to learn ways Bragg can accelerate your business with our technology, content and managed services solutions. Discover more about our award-winning Player Account Management (PAM), which is leading the way across the European market and in multiple regulated markets. Learn how our cutting-edge content aggregation RGS which already integrates a host of casino, sportsbook and lottery operators and is supported by our leading gamification product Fuze,” the Company said.
Participate in an insightful discussion
Join Bragg Group Director of Content Doug Fallon and fellow panelists at SBC Summit North America to discuss how game design can be leveraged to deliver profitable products in the iGaming industry.
Don’t miss this great panel discussion “Game Design 101: Launching a Profitable Product” taking place on iGaming Stage 3 at 16:00 on Wednesday, May 8.
DraftKings announced the appointment of Lori Kalani as Chief Responsible Gaming Officer reporting to DraftKings’ chief executive officer, Jason Robins. Kalani becomes DraftKings’ first Chief Responsible Gaming Officer committed to the continued elevation and integration of the company’s player safety and protection activities and initiatives across all facets of its platforms and player communities.
“Responsible gaming is one of our top priorities and it is a core part of our mission to build games that our customers can enjoy responsibly. In this leadership role, Lori will further advance our responsible gaming initiatives and uphold our commitment to setting new industry standards,” Jason Robins, CEO and Co-Founder of DraftKings, said.
Leveraging a systems-based approach, DraftKings’ responsible gaming initiatives utilize, among other things, technology, employee training, evidence-based research, collaboration with third parties and advocacy groups, and comprehensive player education to promote responsible play across all platforms and all player communities, and to provide players with tools to help them manage their play responsibly.
“I have long admired DraftKings’ impact as an entertainment and engagement platform that brings a community of gaming enthusiasts together. Joining DraftKings represents an exciting opportunity for me to bolster the efforts of the company and look for opportunities to reinforce our responsible gaming initiatives. I am eager to partner with colleagues, regulators, industry leaders, and community advocates to further demonstrate DraftKings’ commitment to responsible gaming and promote a healthy gaming environment for all customers,” said Lori Kalani.
Kalani’s extensive experience in consumer protection law and proven accomplishments in developing working relationships with regulators, attorneys general and other key stakeholders will enable her to effectively work alongside DraftKings’ Compliance team to further cultivate DraftKings’ dedication to best-in-class consumer safety and protection practices.
Kalani previously was a partner at the Cozen O’Connor law firm and Co-Chaired the State Attorneys General practice. Her extensive background spans diverse industries including gaming, social media, telecommunications, hospitality and healthcare. Kalani’s nuanced understanding of regulatory environments and her expertise in representing clients in industry-shaping challenges that intersected law, politics, and policy make her the ideal leader to advance DraftKings’ responsible gaming initiatives.
Kutt, the leading social betting platform, announced that it closed the first quarter of 2024 with a successful fundraise of over $1 million and that it has surpassed the 10,000 user mark. The company also commissioned a study of 1000 bettors that clearly defines what social betting is and what users want — further cementing its ownership of the space.
“Betting has been a social activity for thousands of years, so it’s no surprise that consumers want the ability to facilitate and track wagers against their friends. If anything, bettors unquestionably prefer a more curated, social experience — they want to be part of a wider community and to be part of the conversation around sports, entertainment, and important events,” Sim Harmon, CEO and founder of Kutt, said.
While sports betting has boomed across the country since the Professional and Amateur Sports Protection Act (PASPA) was overturned in 2018, established gambling companies have largely stuck to the tried-and-true format sportsbooks have been using for decades — traditional sports bets against the house. But consumer desire to experience more has increased as the betting industry has matured, with 82% of bettors interested in wagering directly against their friends and other individuals through a decentralized platform, according to Kutt’s recently commissioned survey.
The survey found that, in addition to Kutt’s traditional offerings, an overwhelming majority of bettors (80%) are interested in wagering on non-sporting events, with 77% wanting to bet on entertainment, 62% interested in wagering on politics, and 60% with a desire to bet on life events. Kutt allows users to wager with friends on any event with publicly verifiable results, making it the ultimate “put your money where your mouth is” destination for fans. The survey also shed light on some compelling aspects and trends among current bettors, including:
- A higher percentage of bettors surveyed placed a wager with a friend in the past year (61%) vs. a sportsbook (60%)
- More than half of U.S. bettors (54%) have betting group chats with friends
- A majority of U.S. bettors (60%) text their friends about the progress of a bet while watching a game.
Adding further validity to the findings of the survey and the demand for a real-money social betting experience is Kutt’s recent $1 million+ institutional fundraise, led by Lightning Capital, a firm that invests in digital assets and online communities. The investment will fuel initiatives aimed at growing the Kutt community, enhancing user experiences, and expanding betting markets.
“We look for emerging companies in high-growth industries to invest in. Kutt’s enthusiastic user base, rapidly growing partnership portfolio, and their differentiated product offering were very attractive to us. We are eager to help them continue to define and own the social betting space,” Jock Percy, General Partner at Lightning Capital, said.
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