Capital Calls: Betway to go

2 minute read

A man watches the game after betting at the FANDUEL sportsbook during the Super Bowl LIII in East Rutherford, New Jersey , U.S., February 3, 2019. REUTERS/Eduardo Munoz

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NEW YORK, April 26 (Reuters Breakingviews) - Concise insights on global finance.

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BETTING ON SPACS. First DraftKings (DKNG.O), then Golden Nugget Online Gaming (GNOG.O), now Betway. The latter global online sports-betting brand’s owner, Super Group, is merging with a special-purpose acquisition company at a post-deal valuation of around $4.6 billion read more .

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Super Group is also buying Digital Gaming, which will give it access to 10 U.S. states. The American market, now gradually opening up, is the jackpot for online sports and casino groups read more . The SPAC buying Super Group, Sports Entertainment Acquisition (SEAH.N), is led by former National Football League executives.

With the U.S. securities watchdog ramping up scrutiny of SPACs, the buyer of Super Group is hedging its bets with seven pages of risk factors in its presentation. Those warnings may get little attention though, given the strong performance of earlier gaming mergers. SPACs typically trade at around $10 a share before they identify targets. DraftKings’ shares now trade at $58. GNOG now trades at $14 and change. Genius Sports (GENI.N), the sports-data SPAC merger that closed just last week, is above $21. Would-be owners should keep in mind that the insiders always have the edge read more . (By Richard Beales)

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Earlier in Capital Calls:

EU’s vaccine feud is more political than financial read more

Honest IPO read more

Total pulls legal ripcord in Mozambique read more

U.S. bank mergers read more

Nestlé reaches for the vitamin pills read more

When rebranding turns into Abrdn read more

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