Another Online Betting and Gaming Stock to Play
Another day, another SPAC deal in the fast-growing online gaming universe. Super Group (SGHC) announced it is merging with Sports Entertainment Acquisition Corp. (SEAH) to create a NYSE-Listed global gaming company.
Sports Entertainment Acquisition Corp. warrants trade under the ticker SEAH/W.
Super Group is the holding company for leading global online sports betting and gaming businesses: Betway, a premier online sports betting brand, and Spin, a multi-brand online casino offering.
The company’s statement says that Super Group has also entered into an agreement to acquire Digital Gaming Corporation (“DGC”) (subject to customary regulatory closing conditions), which will give the group access to up to an initial 10 U.S. states, complementing its global growth strategy.
The Supreme Court legalized sports betting in 2018. The ensuing years have seen massive growth in the industry, as more and more states offer legal online and and/or sportsbooks. According to the American Gaming Association, 21 states and the District of Columbia now have sports betting.
The statement regarding the SGHC merger says, “The combination with SEAH will give Super Group access to the capital markets and a strong platform to accelerate its global growth strategy, as well as expansion into the fast-growing U.S. online sports betting and gaming market.”
After the announcement today the stock of SEAH moved higher, and then pulled back intraday. This has become a common pattern on announcements recently.
Some of the SPAC names have based, and moved higher intraday, and in subsequent days, , like Mudrick Capital Acquisition II (MUDS/W). But others have continued to slump after their initial announcements.
Mudrick, which is slated to buy Topps, has gotten continued attention due to the fact that Topps is expanding its presence in the NFT market. It’s pretty clear that in order to put in a continued move after the initial announcement, the SPAC announcing must be aiming at a hot property that has Wall Street’s eye right now. NFTs fit that bill.
Online gaming attention, during the SEAH announcement today, is currently focused on ARKs Cathie Woods’ recent pick, Skillz (SKLZ/W). SKLZ may continue to steal the thunder from SEAH, at least on the gaming side, in the near term.