Scientific Games has sold its OpenBet sports betting business to Endeavor Group Holdings for $1.2 billion.
Scientific Games announced plans earlier this year that it would divest itself of OpenBet but did not reveal if it would do so through an IPO, SPAC or straight sale. They landed on a straight sale to Endeavor that will net them $1 billion in cash and a $200 million in Class A shares. As long as it receives regulatory approval the transaction is expected to close sometime in the second quarter of 2022.
OpenBet offers sports betting technology used by some of the most well-known sports betting operators in the American market, including BetMGM, FanDuel Sportsbook, Golden Nugget and WynnBET. OpenBet also provide betting technology to many global partners in Europe and Asia.
Along with announcing the purchase of OpenBet, Endeavor also announced they plan on combining OpenBet with their own sports betting business IMG Arena. IMG Arena currently works for sportsbook brands across the globe to deliver official live streaming video and data feeds for live sporting events.
In a release Endeavor CEO Areil Emanuel said, “OpenBet has built an incredible sports betting suite anchored in its best-in-class betting engine and now including expanded content, services and products for sports books and fans. This capability set is the ideal complement to our IMG ARENA sports betting business, which works directly with sports rights holders. We look forward to growing these businesses together to capitalize on the strong secular tailwinds in the sports betting ecosystem.”
The announcement has already been good news for Endeavor shareholders. Following the announcement of the deal on Monday Endeavor’s stock price surged nearly 10 percent.