According to news released on Monday, Wynn Resorts, a casino and hotel operator in Las Vegas, plans to merge its nascent online sports betting operation with special purpose acquisition company (SPAC) Austerlitz Acquisition Corp. I before going public.
Texas-native William "Bill" Foley founded the blank-check business Austerlitz. According to the agreement, Wynn will keep 58% of the combined company, which will be worth about $3.2 billion.
This is the most recent in a string of mergers between SPACs and US-focused online gaming and sports betting businesses that have been disclosed in the previous year. The owner of prominent European digital bookmaker Betway, Super Group, recently disclosed plans to partner with Sports Entertainment Acquisition Corp. to list on the New York Stock Exchange.
The partnership that will be created as a result of the Wynn and Austerlitz agreement will get around $640 million in cash. Additionally anticipated to contribute is Mr. Foley's Cannae Holdings Inc.
The combined company will trade on the Nasdaq under the ticker symbol WBET and conduct business as Wynn Interactive Ltd. The business will manage the WynnBET brand of online sports betting. By the end of the year, the transaction is anticipated to be completed.
With access to a total of 15, Wynn Interactive's digital wagering unit now offers its services in six jurisdictions where sports betting is permitted.
An agreement to "Unlock the Tremendous Potential" of Wynn Interactive
Wynn Resorts CEO Matt Maddox responded to the company's announcement by expressing confidence that their SPAC merger will "unlock the incredible potential of Wynn Interactive to further accelerate growth and enable the business to seize the massive opportunity in North America."
It should be noted that in addition to operating the physical sportsbooks at Wynn's casinos in Las Vegas, the new firm will also manage the internet sports betting industry.
Based on a 5% to 7% share of the US digital gambling market, the gaming and hospitality powerhouse predicts that its online revenue will surpass $700 million in 2023. The corporation presently earns about $100 million from online betting.
SPAC transactions have increased significantly in the US over the past year. As the US regulated sports betting market continues to expand at a rapid rate, many gambling executives see a combination with a blank-check company as a speedy method to get their business to market with a possibly larger money raise and decreased complexity than the usual IPO procedure.
While Rush Street Interactive and Golden Nugget Online Gaming ended their agreements with blank-check businesses dMY Technology Group and Landcadia Holdings II, respectively, late in 2020, DraftKings merged with Diamond Eagle Acquisition Corp. last April.
As was already known, Betway's parent firm anticipates joining forces with a SPAC later this year to enter the US sports betting industry.