Tag Archive : SBTech

DraftKings Closes SBTech, Diamong Eagle Combination

Daily fantasy sports and sports betting operator DraftKings on Thursday completed its $3.3 billion merger with Diamond Eagle Acquisition Corp. (DEAC) and sports betting technology provider SBTech to form the “only vertically integrated pure-play sports betting and online gaming company based in the United States.”

The deal was approved by DEAC shareholders at a Thursday meeting. The combination will see DraftKings begin trading on the NASDAQ Global Select Market today, April 24, under the ticker symbol DKNG.

The DFS and wagering operator can now go public thanks to its tie-up with DEAC, which is a special purpose acquisition company that went public last May.

Commenting on the recently closed merger, DraftKings co-founder and CEO Jason Robins said that this marks another milestone for the company “and the future of digital sports entertainment and gaming in America.”

Mr. Robins went on to say that “by bringing together our leading consumer brand, data science expertise and industry-leading products with SBTech’s proven technology platform, we will accelerate our innovation, growth and scale.”

Mr. Robins will lead the combined company as its Chief Executive Officer. DraftKings will maintain its Boston headquarters as well as US offices in Hoboken, Las Vegas, San Francisco, and New York and international offices in Dublin, Kyiv, Sofia, Plovdiv, and Tel Aviv.

Merger Through Acquisition of SPAC

Mr. Robins said that their choice to go public through the acquisition of a SPAC had its advantages over a traditional IPO, particularly in the face of a global pandemic.

In an interview with Yahoo Finance, the DraftKings CEO said that even before the current situation, they had discussed “how the market had been in an 11-year bull run, and it was quite possible with the election approaching that bad news or something could cause a real downturn.”

Mr. Robins pointed that in the event of such a downturn, a traditional IPO would not have protected them the way the SPAC structure does.

DEAC raised $400 million from its IPO in May 2019. DraftKings is now set to add that money to its balance sheet. In addition, it should be noted that the combined DraftKings-SBTech group has around $500 million in cash on hand at a time where every business needs a capital infusion.

Mr. Robins noted that if they had taken the traditional IPO route, they might not have been able to close their combination with the gambling technology provider.

However, DraftKings has finalized the transaction and can now put another $500 million on its balance sheet at a time that raising money is a very challenging task.

Commenting on the current lack of sports due to the global Covid-19 pandemic, Mr. Robins said that this is a temporary situation and that if most sports return this fall, as planned, operators will have some very busy months with NFL, MLB, MLS, NHL, and golf all taking place at once.

Source: DraftKings completes merger that makes it a public company, starts trading Friday

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Kiron Boasts Expanded Virtuals Delivery Partnership with SBTech

Virtual sports specialist Kiron Interactive has expanded an existing partnership with sports betting and iGaming platform provider SBTech, news emerged today.

Kiron announced that it has successfully integrated its BetMan platform with SBTech to re-energize its relationship with the provider.

Kiron’s BetMan omni-channel RGS provides operators and their customers with a fully-hosted and fully-managed turnkey virtual games betting solution that enables bettors to place bets on Kiron’s virtual games content in retail facilities as well as on desktop and mobile.

Thanks to the recently completed integration, Kiron’s entire virtual games portfolio has now become available with SBTech’s platform. The move has seen Kiron add an extensive variety of virtual sports events and a number of games as well as popular football content, including its latest football-focused product GOAL.

As a result from the extended partnership, SBTech will be able to offer to its operator partners Kiron’s rapid play betting experiences across a multitude of virtual sports events.

Kiron Interactive was established back in 2001. The company’s nearly two-decade experience involves the provision of virtual games and gaming systems to the global gambling industry. Its products have been successfully harnessed across a number of distribution channels, including the Internet, mobile, and satellite broadcast.

Building on a Long-Standing Partnership

The integration of virtual games content via Kiron’s BetMan solution and onto SBTech’s platform builds on a long-standing partnership between the two providers. Kiron and SBTech first joined forces in 2014 and the companies say their relationship has only gone from strength to strength over the past more than five years.

Commenting on their expanded partnership with SBTech, Kiron co-CEO Steven Spartinos said that SBTech has been a valued partner to them and that “expanding the content range available through BetMan reinforces our business relationship and bolsters its platform with a greater range of our quality virtual content at a crucial times.”

Mr. Spartinos went on to say that the demand for virtuals content has been growing significantly and that thanks to the flexibility of their platform and speedy integration they have been able to quickly deliver its wide-ranging virtual portfolio to its partners.

SBTech Commercial Partnerships Director Letizia Angelo said that as virtuals see rising popularity, “the expansion of Kiron’s content available through the SBTech platform is a valuable addition to our offering and that they are confident said content will be widely welcomed by their global gaming partners.

Ms. Angelo went on to say that since they first joined forces more than five years ago, Kiron has been a trusted partner to SBTech and that they are looking forward to expanding their collaboration with them even further as Kiron’s content “continues to push the boundaries of innovation in the virtuals vertical.”

Source: KIRON EXTENDS PARTNERSHIP WITH SBTECH

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SBTech to Set Aside $30 Million for Cyber Attack Legal Settlements

Sports betting technology provider SBTech has been told to set aside $30 million in cash and stock that would be used to cover any legal expenses, should clients of the company institute legal action relating to a recent major cybersecurity incident.

On March 27, SBTech was hit by a sophisticated cyber attack that forced it to power down all its data centers around the globe. As a result, more than 50 sportsbooks powered by the provider’s technology went offline.

Most sportsbooks remained offline for an entire weekend, while others are yet to resume operations following the attempted hack. Churchill Downs’ BetAmerica sportsbooks in Indiana, New Jersey, and Pennsylvania are among the operations that are still offline.

SBTech said that no data was compromised during the cyber attack, but it was still powerful enough to knock out the sportsbooks that it powers.

Changed Merger Terms

Following last month’s cyber attack, Diamond Eagle Acquisition Corp., the special vehicle through which SBTech will merge with US sports betting and daily fantasy sports operator DraftKings, amended the tie-up agreement to require SBTech’s sellers to set aside $30 million to pay any potential settlements with affected clients.

According to a filing with the US Securities and Exchange Commission, the amended agreement will see $10 million of the $600 million in cash consideration that is to be paid to SBTech’s sellers placed in escrow for two years following the deal’s closure.

Shares worth $20 million in the combined company will be subject to a two-year lock-up period.

The money would be used to cover any potential legal settlements with SBTech clients that were affected by the cyber attack. None of the betting technology provider’s operator partners have said they would instigate legal action yet.

According to the amended merger terms, if the $30 million in cash and stock fail to cover legal settlements, another $25 million in escrowed cash and $45 million in locked-up shares would be released for the purpose of reaching settlements.

If that money, too, fails to cover legal expenses, SBTech’s sellers, including founder and majority shareholder Shalom McKenzie, will have to pay for the settlements. The technology provider’s sellers have agreed to the amended terms.

Merger Still On Track Despite Incident

It also emerged that Diamond Eagle has pushed back the meeting during which the proposed combination of DraftKings and SBTech was to be voted on. The meeting was slated to take place on Thursday, April 9, but was rescheduled for April 23.

Diamond Eagle said that the merger remains “on track to close in April”, despite the challenging and dynamic business environment.

DraftKing’s merger with SBTech was announced last year. The combined entity would be valued at $3.3 billion and is estimated to have $500 million of unrestricted cash on hand as it seeks to expand and cement its position in the rapidly growing US sports betting field.

The merger will create the only “vertically-integrated sports betting and online gaming company based in the United States.”

The combined entity, which will assume the name DraftKings once the deal closes, will go public as Diamond Eagle is a publicly traded company.

Source: SBTech ordered to set aside $30m to settle hacking claims

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SBTech joins forces with ORYX Gaming

SBTech has signed a partnership with ORYX Gaming, a Bragg Gaming Group, for its wide-ranging portfolio of casino content and marketing tools. 

The agreement will see ORYX’s entire RGS portfolio of casino and slot content made available to SBTech’s platform partners. 

The direct integration into SBTech’s iGaming platform will allow its platform partners quick and easy access to a library of over 250 games available via ORYX RGS, including ORYX’s proprietary content and games from partnered studios such as Gamomat, Kalamba, Golden Hero and Givme Games.

Gamomat Games offers over 100 titles exclusive to ORYX with features including unique side-game jackpots that have proven to be extremely popular with players. Golden Hero is the only real pachislot content provider in the iGaming market worldwide and ORYX holds the exclusive distribution deal for its content in Europe. SBTech partners will also have access to Kalamba’s content which offers advanced game mechanics and features that improve KPIs, increase acquisition, retention, monetisation and player engagement.

SBTech has a wealth of industry knowledge and experience, and powers some of the fastest growing and best performing operators in Europe; including Virgin Bet and Mansionbet, which will soon be able to benefit from a variety of unique and localised content as well as advanced marketing tools such as promotions, leaderboards, tournaments and jackpots through a single seamless integration.

ORYX is licensed by the Malta Gaming Authority (MGA) and the Romanian National Gambling Office (ONJN) and is compliant, certified or approved in 14 other major jurisdictions.

Letizia Angelo, Commercial Partnerships Director at SBTech, added: “We are delighted to add ORYX’s content to our award-winning iGaming platform further expanding our casino content mix for our partners. SBTech is committed to driving partner revenues in all verticals and by adding ORYX’s extensive range of gaming content we will continue to do so in these challenging times.”

Matevz Mazij, Managing Director of ORYX Gaming, said: “We’re thrilled to announce yet another partnership in what has been a very successful period for us in terms of growing our partner network of top operators and successful integration with Tier 1 platform providers. SBTech powers some fantastic betting and casino brands in many regulated jurisdictions which will give us access to a new and wide-reaching player base.”

SBTech must create $30m cyber attack fund for DraftKings deal

As a result of a cyber attack on its partners, SBTech has to set aside a fund of $30m to compensate for any damages in accordance with its DraftKings deal.

Diamond Eagle Acquisition Corp. (DEAC), the acquisition company heading DraftKings’ acquisition of SBTech, detailed the new obligation in an additonal indemnity clause on the deal’s contract.

The cyber attack shut down a number of SBTech’s partner sites last month for approximately six days.

However, the supplier ensured that due to the coronavirus pandemic causing mass sporting cancellations, the impact of the downtime was minimal for partners on the revenue side.

According to the new clause, SBTech owners will need to set aside $30m of the $600m being paid in the deal to be held in escrow for two years.

If compensation costs exceed this $30m amount, the DEAC is able to also use funds from the previously arranged $25m escrow and $45m in shares.

The DraftKings – SBTech deal is expected to close in the first half of 2020.

It is anticipated the combined company will have a market capitalisation of approximately $3.3bn, with over $500m of unrestricted cash on the balance sheet.

Danske Spil Shuts YouBet Site over Mistake by Supplier SBTech

Denmark’s state-run gambling operator Danske Spil has shut its YouBet site this past weekend after discovering it had offered betting on Swedish lower league football matches. YouBet was powered by sports betting technology provider SBTech.

Danske Spil decided to shut the site after it found out that it had continued to offer sports betting markets on Swedish amateur football games, even though its parent had pulled such markets from its main betting operation, Oddset.

Denmark’s state-owned gambling business was recently subjected to heavy criticism for offering odds on lower-tier football leagues in neighboring Sweden at a time when all major sporting events are canceled.

Danske Spil blamed the YouBet incident on a “mistake of our supplier” and noted that it shut down the website as soon as it discovered the error.

The Danish operator and SBTech, a major supplier of technology for the sports betting industry, announced their partnership in the spring of 2018. The product of their collaboration – YouBet – was launched in March of that year.

The website was marketed as one targeting “fresh sports betting demographics”, while also entertaining online casino enthusiasts, and aimed to complement Danske Spil’s existing offering. Aside from betting on different sports and events, YouBet also featured more than 1,000 casino titles from global developers and live studios.

Offering What Is Available

Responding to criticism, the Director of Danske Spil’s sports betting unit Niels Folmann told local media outlets earlier that they offered what was available from international football right now.

Aside from taking wagers on Swedish amateur football, the Danish operator was also among the sportsbooks that accepted bets on the so-called “ghost” games, or matches that never happened, in Ukraine.

Mr. Folmann explained that those games slipped into their platforms because their current supply of options to offer to their players is extremely limited. Danske Spil refunded losing bets on the controversial Ukrainian matches.

News about the suspension of the YouBet operation over bets on lower-tier Swedish games emerge just days after Sweden’s former gambling monopoly, Svenska Spel, called on the country’s government to prohibit betting on the exact same games as the practice jeopardizes the safety of professional sports.

Danske Spil shutting the YouBet site came as the latest heavy blow to SBTech after the company recently became victim of a massive cyberattack that prompted it to power down its data centers around the world.

As a result, more than 50 sports betting businesses powered by its technology went offline for an entire weekend.

SBTech did not disclose the nature of the attack, but according to experts, the fact that sportsbooks powered by the provider were down for around or more than 72 hours suggested that the incident was not a direct denial of service (DDoS) attack.

SBTech said that all customer data had been encrypted, which prevented data from being compromised.

Source: Danske Spil shuts YouBet site for Swedish amateur footie bets

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South Africa’s Bet.co.za Migrates to SBTech Betting Platform

Sports betting technology provider SBTech has marked its first foray into South Africa’s regulated online wagering market through a recently formed partnership with Bet.co.za.

The partnership between the leading South African operator and the technology company saw Bet.co.za migrate to SBTech’s sportsbook and online gaming platform.

Through this migration the online and mobile sports betting brand has been able to go live with products that are new to the South African digital gambling space.

The partnership between Bet.co.za and SBTech includes the addition of the provider’s Lucky Numbers product as well as an integration with BetGames.TV, which would enable customers to bet on live lottery draws and live games, using localized payment methods.

In addition, Bet.co.za is set to benefit from a bespoke trading and risk management strategy that is localized for the regulated South African gambling market.

Bet.co.za is the first South African online gambling operator SBTech has partnered with. The recently secured deal has provided the major sports betting technology provider with the oppertunity to enter a new regulated territory as part of its strategy to constantly and rapidly expand and strengthen its regulated foothold and deliver on its international development plans.

A Key Milestone

Commenting on their South African debut, SBTech Chief Development Officer Andrew Cochrane said that they are “thrilled to enter another major regulated market” and to team up with one of “South Africa’s premium gaming operators.”

Mr. Cochrane went on to say that a great amount of “collaborative work has taken place behind the scenes ahead of this migration and going live with Bet.co.za marks a key milestone” in their partnership with the South African gambling business.

Bet.co.za CEO Scott Canny said that by migrating to SBTech’s platform they will be able to enhance, elevate, and fully customize the experience they offer to their customers and provide them with a product that is “unlike anything else available in the South African market.”

Mr. Canny went on that their local marketing expertise paired with SBTech’s platform are set to cement Bet.co.za’s position as the best online bookmaker in South Africa.

SBTech is currently in the process of combining its business with US sports betting and daily fantasy sports operator DraftKings. The tie-up, originally announced in late 2019, will create a $3.3 billion company that will be the only “vertically-integrated sports betting and online gaming company based in the United States.”

In other words, the mega-deal will provide DraftKings with in-house sports betting and iGaming technology, while spearheading SBTech’s ambition to cement itself as a leading wagering provider in the lucrative US sports betting market.

According to preliminary estimates, the combined entity will have more than $500 million in unrestricted cash on its balance sheet. The tie-up is expected to close by mid-2020.

Source: SBTech Enters South African Market with Bet.co.za Platform Migration

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SBTech expands into South Africa with Bet.co.za deal

SBTech has made its first move into South Africa after signing a partnership with online and mobile sports betting brand Bet.co.za.

The deal will see Bet.co.za incorporate SBTech’s Lucky Numbers product and form an integration with BetGames.TV, enabling players to bet on live lottery draws and live games.

The supplier has also tailored its trading and risk management strategy for the market.

Andrew Cochrane, Chief Development Officer of SBTech, said: “We are thrilled to enter another major regulated market with Bet.co.za, one of South Africa’s premium gaming operators.

“A significant amount of collaborative work has taken place behind the scenes ahead of this migration and going live with Bet.co.za marks a key milestone in this ongoing partnership.”

SBTech has implemented key measures during the COVID-19 crisis to ensure the wellbeing of its staff and commitment to its partners.

The supplier is continuing to work closely with its third-party data providers to ensure a calendar of events, while also offering its suite of alternative products, such as esports and casino.

Last week, SBTech took the decision to power down its data centres after its partner sites were targeted by a cyber attack.

According to the supplier, the impact of the downtime was minimal for partners on the revenue side.