Super Group Completes Acquisition of Digital Gaming Corporation

Rhea-AI Summary

Super Group (SGHC) has successfully acquired Digital Gaming Corporation Limited (DGC), marking its entry into the U.S. online sports betting market. The acquisition allows SGHC to expand its operations across up to twelve states, including eight currently live, leveraging the Betway brand. CEO Neal Menashe emphasized the company's strong financial position and growth potential. The deal is expected to significantly enhance Super Group’s footprint in the growing U.S. market.

Positive

• Acquisition of DGC enhances SGHC's market access in up to twelve U.S. states.
• Eight states currently operational with Betway brand, indicating immediate market presence.
• Strong financial position and history of profitable growth outlined by SGHC's CEO.

Negative

• None.

Expands global footprint into the United States, further capitalizing on growth opportunities

NEW YORK--(BUSINESS WIRE)-- Super Group (SGHC) Limited (NYSE: SGHC) (“SGHC” or “Super Group”), the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, today announced it has completed the acquisition of Digital Gaming Corporation Limited (“DGC”), an online sports betting and iGaming company with market access in up to twelve U.S. states, eight of which are live today.

This acquisition enables Super Group’s U.S. market entry, further enhancing its global footprint.

DGC is live in Iowa, Pennsylvania, New Jersey, Arizona, Colorado, Indiana, Virginia and Ohio, all utilizing the Betway brand, which it licenses from Super Group on an exclusive basis. During the first quarter of 2023, DGC expects to go live in Louisiana joining Arizona, Virginia and Ohio on the Betway Global technology platform.

Neal Menashe, CEO of Super Group, commented: “We are excited to officially welcome DGC into Super Group. We look forward to working more closely with the team as we apply our proven toolkit to the U.S.” Mr. Menashe continued, “With a healthy balance sheet and a consistent track record of driving profitable growth, Super Group is well positioned to enter the U.S. market, enhancing our global footprint.”

About Super Group (SGHC) Limited
Super Group (SGHC) Limited 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 group is licensed in multiple jurisdictions, with leading positions in key markets throughout Europe, the Americas and Africa. The group’s sports betting and online gaming offerings are underpinned by its scale and leading technology, enabling fast and effective entry into new markets. Its proprietary marketing and data analytics engine empowers it to responsibly provide a unique and personalized customer experience. For more information, visit www.sghc.com.

Forward-Looking Statements

Certain statements made in this press release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995.

These forward-looking statements include, but are not limited to, expectations and timing related to market entries and expansion, projections of market opportunity, growth and profitability, expected growth of Super Group’s customer base, and expansion into new markets.

These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the ability to implement business plans, forecasts and other expectations, and identify and realize additional opportunities; (ii) the ability to maintain the listing of Super Group’s securities on a national securities exchange; (iii) changes in the competitive and regulated industries in which Super Group operates; (iv) variations in operating performance across competitors; (v) changes in laws and regulations affecting Super Group’s business; (vi) Super Group’s inability to meet or exceed its financial projections; (vii) changes in general economic conditions, including as a result of the COVID-19 pandemic; (viii) changes in domestic and foreign business, market, financial, political and legal conditions; (ix) future global, regional or local economic and market conditions affecting the sports betting and gaming industry; (x) changes in existing laws and regulations, or their interpretation or enforcement, or the regulatory climate with respect to the sports betting and gaming industry; (xi) the ability of Super Group’s customers to deposit funds in order to participate in Super Group’s gaming products; (xii) compliance with regulatory requirements in a particular regulated jurisdiction, or Super Group’s ability to successfully obtain a license or permit applied for in a particular regulated jurisdiction, or maintain, renew or expand existing licenses; (xiii) the technological solutions Super Group has in place to block customers in certain jurisdictions, including jurisdictions where Super Group’s business is illegal, or which are sanctioned by countries in which Super Group operates from accessing its offerings; (xiv) Super Group’s ability to restrict and manage betting limits at the individual customer level based on individual customer profiles and risk level to the enterprise; (xv) the ability by Super Group’s key executives, certain employees or other individuals related to the business, including significant shareholders, to obtain the necessary licenses or comply with individual regulatory obligations in certain jurisdictions; (xvi) protection or enforcement of Super Group’s intellectual property rights, the confidentiality of its trade secrets and confidential information, or the costs involved in protecting or enforcing Super Group’s intellectual property rights and confidential information; (xvii) compliance with applicable data protection and privacy laws in Super Group’s collection, storage and use, including sharing and international transfers, of personal data; (xviii) failures, errors, defects or disruptions in Super Group’s information technology and other systems and platforms; (xix) Super Group’s ability to develop new products, services, and solutions, bring them to market in a timely manner, and make enhancements to its platform; (xx) Super Group’s ability to maintain and grow its market share, including its ability to enter new markets and acquire and retain paying customers; (xxi) the success, including win or hold rates, of existing and future online betting and gaming products; (xxii) competition within the broader entertainment industry; (xxiii) Super Group’s reliance on strategic relationships with land based casinos, sports teams, event planners, local licensing partners and advertisers; (xxiv) events or media coverage relating to, or the popularity of, online betting and gaming industry; (xxv) trading, liability management and pricing risk related to Super Group’s participation in the sports betting and gaming industry; (xxvi) accessibility to the services of banks, credit card issuers and payment processing services providers due to the nature of Super Group’s business; (xxvii) the regulatory approvals related to proposed acquisitions and the integration of the acquired businesses; and (xxviii) other risks and uncertainties indicated from time to time for Super Group including those under the heading “Risk Factors” in our Annual Report on Form 20-F filed with the SEC on April 20, 2022, and in Super Group’s other filings with the SEC. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in other documents filed or that may be filed by Super Group from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Super Group assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Super Group does not give any assurance that it will achieve its expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221221005441/en/

Investors:

investors@sghc.com



Media:

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Source: Super Group

FAQ

What is the significance of Super Group's acquisition of Digital Gaming Corporation (DGC)?

Super Group's acquisition of DGC expands its footprint into the U.S. online sports betting market, providing access to twelve states.

Which U.S. states are involved in the SGHC and DGC acquisition?

The acquisition allows SGHC to operate in up to twelve states, with eight states currently live including Iowa, Pennsylvania, and New Jersey.

What are the expected benefits for SGHC after acquiring DGC?

The acquisition is expected to enhance SGHC's market presence, drive profitable growth, and leverage the Betway brand effectively.

When is DGC expected to launch its services in new states?

DGC is expected to go live in Louisiana during the first quarter of 2023.

How does this acquisition impact SGHC's financial position?

SGHC maintains a healthy balance sheet and a strong track record of growth, positioning it well to leverage the acquisition for future profitability.