Industry News

Novibet to Go Public in $625M Merger

Published

2 years ago

April 1, 2022

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.”

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Industry News

Penn Entertainment to Lay Off About 100 Employees

Published

4 days ago

July 23, 2024

Niji Narayan

Penn Entertainment plans to lay off about 100 employees as it focuses on growth for ESPN Bet.

CEO Jay Snowden told staff members in an internal email that the changes will enhance operational efficiencies following its 2021 acquisition of Canadian media and gaming powerhouse theScore.

The company employs about 20,000 people.

“When PENN acquired theScore, we hit the ground running with the build-out of our proprietary tech stack and the migration of our sportsbook to theScore’s best-in-class-platform,” Snowden wrote in the memo. “This led us to temporarily set aside any potential organizational changes that would typically follow a major acquisition.”

Penn went on to say it’s embarking on a new phase of growth in its interactive business, which includes ESPN Bet, a $2 billion branding partnership with Disney’s ESPN. Snowden said the initiatives include product enhancements and deeper integration into ESPN’s ecosystem.

Investors are impatient for Penn to demonstrate its muscle with the rebranded sportsbook, and activist investor Donerail Group has called on the board to sell the casino company.

Rumors have swirled about the potential interest from many other online gaming and brick-and-mortar casino companies.

Truist gaming analyst Barry Jonas wrote in a note Thursday that a sale is unlikely in the near term because of the complexity of a transaction that would likely involve major divestitures.

Penn’s release of new ESPN Bet features this fall during football season should meaningfully improve its product, Jonas said, and a focus on costs indicate the company’s commitment to seeing its investment yield results.

Penn shares have plummeted 25% year to date. It has missed earnings expectations the last two quarters and lowered guidance.

“Investors continue to wonder what an ESPN Bet success could look like, and how much more investment (beyond what’s guided) it’ll take to reach,” Jonas notes.

Industry News

Stevin ‘Hedake’ Smith to Promote Gambling Harm Awareness Through EPIC

Published

5 days ago

July 22, 2024

Niji Narayan

Stevin ‘Hedake’ Smith was at the center of one of the most high-profile examples of gambling-related harm in basketball history, which makes him the perfect latest addition to EPIC Global Solutions’ team as they continue to educate the current generation of professional and collegiate athletes on how to avoid the repeat of a similar scenario.

The former point guard made his name as a star player at Arizona State University in the early 1990s, setting college records for three-point attempts and being a two-time All-Pac-10 selection. However, his involvement in point-shaving – which was the subject of a 2021 Netflix documentary – led to a one-year prison sentence and impacted an NBA career with hometown team, Dallas Mavericks.

The source of his gambling harm – being approached by a gambler to change the final score of a game without changing who wins – is an issue that remains very pertinent to student-athletes 30 years on, in spite of the significant changes to sports wagering legislation.

This ensures that his planned involvement in EPIC’s range of education sessions to teams connected to partners such as the NCAA, MLB, and MLSPA will be an important lesson for the athletes, coaches, and staff in attendance when he travels to address them in his new role as US sports advisor for the company.

“I’m passionate about wanting to tell my story and get out there to prevent this from happening again,” he explained.

“I’ve been able to tell my story to players previously and I’m able to have a relationship with all of them in the audience because of the way I deliver my message and coming from one big fraternity in sport. Knowing that EPIC has a global reach is something that really stood out to me about this opportunity and I’m passionate about getting out there and speaking about my experience.”

Though already a renowned name in sporting circles, Smith’s profile is set to rise again in the months ahead with the release of eponymous autobiography, ‘Hedake’, which will coincide with his work with EPIC.

“We’re proud to welcome Hedake to our team and can’t wait to see the impact he’ll have on audiences,” added Teresa Fiore, EPIC’s VP of partnerships.

“In being approached to shave points on game, Hedake has experienced a type of gambling-related harm which is different to many of our other team members. His story represents an area of increasing concern within sports, which adds to the range of our education designed to benefit our valued partners and the key people in their organisations.”

Industry News

Public Health Advocacy Institute (PHAI) Calls for Overhaul of “Responsible Gambling” Model

Published

5 days ago

July 22, 2024

Niji Narayan

As the National Council on Problem Gambling (NCPG) gathered for their annual conference in San Diego last week, the Public Health Advocacy Institute (PHAI)—a nonprofit research center for public health laws affiliated with Northeastern University School of Law— released a new video to highlight the ethical and scientific failure of the “Responsible Gambling” model.

Under the direction of its president, Professor Richard Daynard, Executive Director Mark Gottlieb, and Director of Gambling Policy Dr. Harry Levant, PHAI is leading the efforts to replace the Responsible Gambling model with a comprehensive public health response to the unprecedented expansion of the gambling industry and online gambling. PHAI will be advocating for and advancing much-needed public health reform and regulation at both the federal and state levels.

The new video, which can be found on the PHAI website here, analyzes key flaws in the Responsible Gambling model—an approach favored by both the gambling industry, and the gambling-industry-funded NCPG.

In the video, Dr. Levant highlights the situation’s urgency, stating “The expansion of online gambling without appropriate safeguards and regulation is an industry-driven ‘wild west’ environment, resulting in a looming public health crisis.”

President Daynard echoed this statement by criticizing the current Responsible Gambling model: “The Responsible Gambling model puts the onus on the customer, rather than focusing on the irresponsible design and marketing decisions of the gambling industry.”

Professor Gottlieb also emphasized the need for change. “The time has come to expose the failures of the Responsible Gambling model and move forward with a public health approach to regulation and reform,” he said.