Gambling industry stakeholders are keenly observing the details surrounding the Dallas Mavericks purchase, as it fueled speculations about the future of legalized gambling and sports betting in Texas. The deal should be completed by the year’s end as the team changes hands to the Adelson family, one of the gambling industry’s most famous billionaire magnates.

The Sale Provided Much-Needed Capital

Even with this new venture, Miriam Adelson will retain the majority shareholder position at Sands. As per the SEC filing, Sands board director Irwin Chafetz, a director of the company since February 2005 and a close friend of the late Sheldon Adelson, the founding chairman of Sands, acts as the trustee for the family’s shares. 

This newest deal, initially announced in an SEC filing on 30 November, provides the financial means for Adelson to secure a majority ownership interest in the NBA franchise. Multiple reports suggest that the team will remain in Dallas, and the current owner, Mark Cuban, will continue overseeing basketball operations for the Mavericks.

The Mavericks Purchase Has Significant Implications

Miriam Adelson’s purchase of the majority stake in the Mavericks should be finalized by the year’s end. The deal requires approval from at least 75% of the NBA Board of Governors, consisting of the 30 team owners. If greenlit, Sands President and Chief COO Patrick Dumont, Miriam Adelson’s son-in-law, will join the Board of Governors as the Mavericks’ representative.

Sands has emphasized that ownership of the Mavericks will go directly to the Adelson family and will not impact the company. However, observers view this transaction as part of Sands’ strategy to persuade Texas legislators to take steps towards revising the state’s constitution, potentially allowing legalized gambling, thus advancing the company’s regional interests.

This Development Can Significantly Benefit Sands

Spearheading the introduction of legalized gambling in Texas would represent a significant victory for Las Vegas Sands as it reevaluates its market position and doubles down on its most promising markets. The company recently increased its stake in Sands China, bolstering its overseas presence. It counts on the region’s continued resurgence and the success of its high-profile Macau properties.

Despite Adelson’s efforts to separate the Dallas Mavericks deal from their primary Las Vegas Sands business, the purchase still has considerable implications on the broader gambling landscape. Many industry insiders believe the Mavericks can become the cornerstone of the Adelsons’ Texas efforts, significantly expanding their reach in the state.

The post Adelson Completes $2 Billion Stock Sale, Paving the Way for the Dallas Mavericks Purchase appeared first on Keno Wizard.

The shares of the leading provider of technology and services, powering betting and gaming operators, Bragg Gaming Group, increased Wednesday, after one of its largest shareholders sent a letter, supporting different business combinations, including partial or full sale of the company’s assets. The letter was sent by Jeremy Raper, the founder of Raper Capital, a company that is in charge of some 375,000 shares in Bragg and the second-largest disclosed investor in the company.

In his letter, sent to CEO Matevz Mazij, the expert spoke about Bragg’s acquisition of Oryx a few years ago, explaining that its current stock price is 25% lower when compared to that period. Raper acknowledged the company has seen “chronic underperformance,” regardless of its listing on NASDAQ dating back to 2021. Raper Capital’s founder explained in his letter to Bragg: “Suffice to say, the public markets have had plenty of opportunity to appraise our Company’s growth story, over time, and yet the record demonstrates that it will not, or cannot, accord even the lower bounds of what most shareholders would consider fair value.”

According to Raper, Bragg can ensure proper returns for the shareholders via a partial or full sale of company assets. He encouraged the company to pursue all possible strategic alternatives, including the aforementioned sale that can help maximize the value for all of its shareholders. Moreover, Raper said he believes that minority shareholders would agree that this would be the best course for Bragg.

“As such, it is evidently clear that a third-party sale of the business is the only way to crystallize a proper return for the underlying business value that you, and legacy management, have created.“

Jeremy Raper, founder of Raper Capital

Proposed Sale To “Unlock Latent Value” for Shareholders

Raper Capital’s founder compared the proposal to similar recent transactions within the iGaming vertical that have taken place over the last 24 months. He uncovered that on average, transactions similar to the proposed one were 19x EV/EBITDA, while a median multiple was approximately 15x EV/EBITDA.

Speaking about Bragg’s shares at the time of writing, Raper said that they trade barely at 5.5x EV/EBITDA. He said that even with a conservative 12x EV/EBITDA Bragg’s share would be worth $13.5 per share based on current year numbers or $18 per share on FY24E numbers.

Toward the end of his letter, Raper said that he plans to continue to be a long-term shareholder of Bragg. “By calling for a sale of the company now, I only seek to preserve, and finally unlock, that latent value for the benefit of all stakeholders,” he explained.

Earlier this month, Bragg confirmed that its current chief operating officer and president, Lara Falzon, gave resignation notice. At the time of the announcement, the company confirmed that she would step down from the two roles, effective from the end of the year.

The post Bragg’s Shares on the Rise after Investor Urges Assets Sale appeared first on Keno Wizard.

Star Entertainment Group has completed the sale of its Sheraton Grand Mirage Resort Gold Coast property. Announced earlier this year, the sale saw the Australian casino and hospitality giant sell the property for AUD 192 million (roughly $128 million at the time of the announcement).

The sale of the property came amid regulatory headwinds that saw the company lose public trust and experience deterioration in operating conditions.

Grand Mirage Resort Gold Coast was purchased by the Karedis and Laundy families. Best known for their activity in Australia’s liquor and hospitality sectors, the families will thus be able to expand their portfolio with another major property.

The sale was officially closed on November 3, providing Star Entertainment with almost AUD $60 (approximately $39 million in USD) in net proceeds. For reference, Australian Wattle Development originally purchased the property for AUD 140 million in 2017.

The Group Is Yet to Recover from the Bell Review

The Star’s post-review hurdles are not over yet. In 2021, the NSW Independent Casino Commission appointed Adam Bell SC to review the company’s business in New South Wales. After months of investigation, the Bell review uncovered multiple violations.

The company had to pay hundreds of millions in fines, almost lost its license to conduct business in the state and was forced to implement remediation measures and do better. The fines and the public trust Star lost caused its business to decline.

The silver lining is that the company’s remediation process seems to be going well. At the end of August, the company reported that it has so far implemented 22 of the 30 Bell review recommendations. The struggling casino and hospitality giant reaffirmed its intentions to do follow the recommendations outlined in the review and fix its shortcomings.

In addition, the company was recently able to strike a tax relief deal in NSW. The concession on casino duty rates with the NSW government is expected to help Star get its finances under control.

In other news, Star Entertainment was recently criticized by professional poker players who accused the company of banning players without providing any justification. Considering WPT’s exclusive partnership with Star Entertainment, this caused trouble for some elite poker players.

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PointsBet will return millions to its shareholders following the sale of its US business to Fanatics Betting and Gaming. This was confirmed during the company’s latest extraordinary general meeting.

PointsBet agreed to divest its US assets on June 30, selling its American operations of $225 million. The transaction is intended to take place over a multi-stage completion process and is still subject to regulatory approvals and customary conditions. If the deal is approved, PointsBet will receive $175 million at the initial completion and another $50 million at the subsequent completion. 

Following the sale of its US business, PointsBet plans to distribute the net proceeds to its shareholders, along with the majority of the company’s corporate cash reserves. PointsBet explained that the sale of its US assets would change its business, resulting in a surplus of reserves, thus enabling the move.

Following the sale of the US Business, the funding requirements of the Company’s remaining assets will be fundamentally different to the status quo.

PointsBet statement

According to PointsBet, the first capital return will see around $203.6 million (converted to USD from AUD) returned to the shareholders following the initial completion (expected to be completed by mid-September).

After that, a second capital return of between $80.8 million and $92.4 million will see money returned to the shareholders upon the subsequent completion (around March 2024).

The Deal Between Fanatics and PointsBet Was Mutually-Beneficial

In other news, PointsBet published its FY 2023 results, demonstrating a turnover of AUD 5.74 billion. The company attributed its stellar performance to the divestment of its US assets, which allowed it to focus on other lucrative initiatives.

Fanatics, on the other hand, will now be in the perfect position to challenge some of the mainstays of the US gambling market, including juggernauts such as FanDuel and DraftKings. Analysts believe that the acquisition will help Fanatics capitalize on the upcoming NFL season.

In the meantime, the transaction between PointsBet and Fanatics will also provide the latter company with a unique shot at New York’s gambling market. By acquiring PointsBet’s US business, Fanatics also hopes to secure an entry into one of the most promising US markets.

While regulators agreed that the company’s suitability to hold PointsBet’s NY license must be evaluated, the move is nevertheless a big opportunity for Fanatics to grow its US footprint.

The post PointsBet to Return Millions to Shareholders Following the Sale of Its US Arm appeared first on Keno Wizard.

Italy’s Lega Serie A unveiled the revision of its betting rights. The top-flight soccer division will tender rights for the 2024/25 season to international data suppliers. For reference, rights for the Lega Serie A have been held by Stats Perform since 2021.

Serie A drafted nine packages labeled A to F(c). Each package covers a different aspect of the betting rights, with Package A being the most appealing to international betting data suppliers.

Also known as the International Sports Betting Package, Package A focuses on audiovisual rights, as well as match and coach data. It covers all approved countries outside of Italy, making it very appealing to global data companies.

Package B, or the Sports Betting Package Italy, on the other hand, covers match data and coach data for the Italian market. Because of the prominence of the Italian gambling market, local companies are likely to be very interested in this package as well.

Meanwhile, Packages C-E cover media data, sports betting tracking data and media tracking data.

The final package, Package F, is split into three sub-packages that cover data included in other packages. Thus, Package F(a) encompasses the data included in A and B. F(b), on the other hand, covers A, B and D. Finally, F(c) combines the rights outlined in Package C and E.

Companies Must Be Mindful of the Rules

While licensees will be allowed to use the rights to form partnerships, they are not permitted to use imagery of Serie A athletes, staff and logos. Licensees can also sign sub-licensing agreements only if explicitly authorized by the terms of their license.

Once a company is approved for a betting rights package, it must accept responsibility for managing the rights. In addition, it also has to pay a security deposit of 15% of the license fee. After that, the approved firm must pay the remainder of the license fee in three installments.

The first installment must be paid by July 1, 2024, with the other two to follow on November 1, 2024, and March 1, 2025. The same payment timeframe will be used in the following years as well, the league noted.

Licensed companies must commit to providing monthly updates to Serie A, informing the league of the top 10 markets in terms of gross gaming revenue. Licensees must also provide the league with player behavior data and information on Serie A’s performance compared to other Italian sports leagues.

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Enjoy Group, a South American casino and hospitality company, has contacted the Chilean Commission of Financial Markets (Commission for the Mercado Financiero/CMF) about a potential sale of casino properties in Chile and Uruguay. The decision comes in the wake of a failed merger with DREAMS SA.

Enjoy was supposed to merge with the aforementioned company but the deal was abandoned in April. Since then, Enjoy Group has been seeking other long-term strategic plans to boost its profitability.

The announcement follows a publication by the Diario Financiero on July 30, which claimed that Enjoy’s operations in Chile and Uruguay are up for sale.

A sale of its operations in Chile and Uruguay could lead to a favorable transaction that may benefit the company. The move has been coordinated with ASSET Chile, a financial advisor that Enjoy Group hired to explore potential business deals.

ASSET Chile is tasked with seeking interest from potential investors and finding a deal that would benefit the company.

Enjoy promised to keep the CMF informed about any relevant developments in relation to the potential sale.

Chile Seeks to Launch iGaming, Joining the LATAM Revolution

In the meantime, Chile continues to consider the legalization of online gambling, as attested by the recent advancement of an online gambling bill. The measure was first introduced in March and gained traction in June after being stuck in limbo for a while.

For reference, the only legal gaming companies in the country currently are Lotería de Concepción, Polla Chilena de Beneficencia and Teletrak.

The bill still needs additional approvals but its advancement was hailed by the gambling industry. More recently, the country approved changes to the bill, further highlighting the interest in exploring the online vertical.

In other LATAM-related news, Galera.bet, a Brazilian sports betting brand, just joined the International Betting Integrity Association as its latest member. This highlighted the company’s desire to protect the integrity of professional sporting events in the region and oppose sports and betting-related corruption.

The move comes as Brazil prepares to regulate sports betting, paving the way to a revolution in the local gambling market. However, the Brazilian Institute of Responsible Gaming, a newly-founded industry body, expressed its disapproval of changes to the envisioned taxation rules, believing them to be harsh and unsustainable.

The post Enjoy Group Considers Sale of LATAM Assets Following Failed Merger appeared first on Keno Wizard.

PointsBet announced that an overwhelming majority of its shareholders supported the sale of its US-facing business to the well-known sports merchandise company, Fanatics. Fanatics Betting and Gaming, the company’s sports retail division, filed a proposal for the takeover of PointsBet’s US assets in a deal for some $225.0 million, a significant increase from its initial proposal.

In light of the fresh proposal, some 98% of PointsBet’s shareholders showed approval for the sale of the company’s US business arm. The announcement comes at a time when PointsBet faced difficulties while trying to expand in the competitive US sports betting market.

It was back in 2021 when PointsBet started its US expansion. Brett Paton, PointsBet’s chairman, who was recently cited by The Sydney Morning Herald, spoke about the frustration of the shareholders over the share price of the company since the start of its US-facing expansion and the costs associated with that venture. “Let me say on behalf of your board that we understand your disappointment about the share price performance of our company,” he said, explaining that he and PointsBet’s chief, Sam Swanell, understand their frustration and concern.

“Continuing to operate the US business would require significant capital and further capital raises.“

Brett Paton, chairman at PointsBet

On the other hand, Paton spoke about the ongoing high costs required to continue the US business operation. Speaking about the sale of US assets to Fanatics he pointed out that the “transaction addresses that uncertainty.”

While the aforementioned transaction will offload PointsBet’s US business, the company will remain in control of its Australian and Canadian businesses. Additionally, it will continue to leverage its leading iGaming and sports betting technology that is used within regulated gambling markets in Australia, as well as North America, providing further growth opportunities.

Fanatics Wins a Tough Fight for PointsBet’s US Business

It was last month when Fanatics and PointsBet agreed on a $150 million deal for the latter’s US business. At the time, Fanatics agreed to pay $100 million upon closing of the agreement as well as $50 million in February next year.

But what was thought to be a done deal had an unexpected turn, after the US gaming and betting giant, DraftKings, tabled a new proposal of $195 million for PointsBet’s US-facing business, surpassing the initial $150 million offer by Fanatics.

However, Fanatics wasn’t going to let this happen and responded with an increased bid of $225 million, which was ultimately the successful one. In light of the new bid, DraftKings confirmed earlier this week that it will no longer pursue options for obtaining the US-facing business of PointsBet.

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Investment firm Blackstone Inc. is reportedly exploring offers for half of its stake in the real estate of the renowned Bellagio Hotel and Casino in Las Vegas. 

Blackstone Eyes Partial Divestment of Bellagio Stake in Real Estate Portfolio Shake-up

The Bellagio property was acquired by Blackstone in 2019 for a staggering $4.25 billion in a sale-leaseback transaction with MGM Resorts International. Under the agreement, Blackstone Real Estate Income Trust (BREIT) and MGM Resorts formed a joint venture, with BREIT holding a 95% stake and MGM Resorts holding a 5% stake. As part of the deal, MGM Resorts would continue to lease and operate the Bellagio while being responsible for all day-to-day operations and capital expenditures.

Blackstone’s decision to potentially sell 50% of its stake in the Bellagio casino comes as the firm seeks to capitalize on its real estate assets, Bloomberg reported. The company recently announced plans to divest warehouses and industrial properties for $3.1 billion to Prologis Inc., further indicating its strategy of cashing out on certain real estate positions.

Blackstone has a history of divesting its interests in Las Vegas properties. In 2021, the firm sold the renowned Cosmopolitan hotel, and in December 2022, it agreed to sell its 50% stake in the MGM Grand and Mandalay Bay resorts to Vici Properties Inc., its partner at the time. These transactions highlight Blackstone’s ongoing efforts to optimize its real estate portfolio.

Speculation Surrounds Potential Sale of Bellagio Stake as Blackstone Weighs Options

The Bellagio, located on the iconic Las Vegas Strip, is one of the city’s top-performing resorts. Despite challenges faced by other real estate sectors such as malls and office spaces, the hotel has maintained strong visitor traffic, contributing to its reputation as a premier asset in the gaming industry.

Both Blackstone and MGM Resorts have declined to comment on the matter, leaving room for further anticipation and speculation within the market. While the sale of the Bellagio stake remains under consideration, industry experts are speculating on the potential value of the property and the companies that may submit bids for its acquisition. Blackstone’s deep history and expertise in the Las Vegas real estate market, across various asset classes including office, hospitality, and residential, make it an influential player in the industry.

Notably, Blackstone has made headlines in recent years as the majority owner of Crown Resorts, an Australian-based gambling company. Last year, the investment giant acquired Crown Resorts for an impressive $6 billion, further solidifying its presence in the global hospitality and entertainment sector. The deal came amid a series of regulatory inquiries into Crown’s operations, which resulted in the company losing its license to operate a new casino in Sydney and facing potential revocation of its licenses in Melbourne and Perth. Blackstone proposed several conditions for the deal, including regulatory approval, access to Crown’s financial records, and retention of key personnel.

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Esports and gaming platform operator, Tiidal Gaming Group Corp., announced today that the transaction for the sale of its esports betting business, Sportsflare, to global sports betting and gaming group, Entain, has been closed.

Purchase Price, Holding Period

Tiidal Gaming Group sold its wholly-owned subsidiary, Tiidal Gaming NZ Limited, the company behind Sportsflare, for gross proceeds of C$13.25 million ($9.95 million), subject to standard transaction adjustments. The acquisition of the esports betting business was initially announced in March.

As per the terms of the acquisition, Tiidal will have to keep the purchase price in a holding account for 180 days, a period during which the Canadian Securities Exchange (CSE)-listed group will be able to access the funds to satisfy any working capital adjustments or claims brought by Entain, with up to 20% of the money available to pay reasonable costs related to the transaction.

Tiidal Gaming Group agreed to sell all of the assets and operating activities of Sportsflare. Upon the expiry of the purchase price holding period, the Board of Directors will consider available options to return capital received by Sportsflare shareholders pursuant to the sale.

There are no assurances that any of these options will be implemented by the Board as these options will be subject to the receipt of corporate, securities and tax law advice, as well as to the receipt of all required shareholder, regulatory and CSE approvals.

Share Issuances to CEO, Other Personnel

Tiidal Gaming Group granted Sportsflare’s chief executive officer 2.5 million restricted share units pursuant to the terms of his employment agreement dated January 3, 2022. The restricted units were immediately vested into 2.5 million common shares in accordance with his employment agreement.

The group also issued 1,910,700 common shares to Sportsflare personnel to satisfy earn-out entitlements achieved pursuant to the asset purchase agreement dated December 14, 2020, and amended September 24, 2021.

Collectively known as share issuances, all securities issued to the CEO and personnel are subject to a statutory four-month and one-day hold period starting from the date of their issuance. Following the satisfaction of earn-out entitlements, the group has 87,603,908 common shares issued and outstanding.

As a technology platform sitting at the intersection of gaming, media and betting, Tiidal Gaming Group leverages its deep industry roots and expertise to create immersive gaming experiences tailored to the next generation of fans and consumers, helping build the future of game-based entertainment.

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Century Casinos, a major NA gambling company, has penned a definitive sale-leaseback deal with VICI Properties. The deal will see the former company sell the assets of four of its properties in Alberta, Canada.

The properties in question are Century Casino & Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino in Edmonton, Alberta and Century Downs Racetrack and Casino (“Century Downs”) in Calgary, Alberta.

The aggregate purchase price of the deal is $164.4 million in USD (based on the exchange rates at the time of the deal). The purchase price includes $142.6 million to be paid to Century Casinos’ subsidiaries and $21.8 million to acquire the fee simple real estate interest in Century Downs.

Century Casinos forecasts retaining around $114.6 million of the purchase price.

The Deal Will Be Added to the Existing Master Lease

The four properties, referred to in the deal as the Century Canadian Portfolio, will be added to the existing triple-net master lease agreement between Century Casinos and VICI Properties. As a result, the annual rent will increase by $12.8 million, which translates into an implied acquisition capitalization rate of 7.8%.

Meanwhile, the property-level rent coverage ratio under the Master Lease agreement will be around 2.0x. In addition, the term of the Master Lease will be extended to 15 years after the closing of the latest agreement.

Century Casinos will guarantee its obligations under the lease.

The deal, subject to regulatory approvals, is expected to close in the second half of the year.

The Higher-ups Are Excited about the Arrangement

Century Casinos’ co-chief executive officers, Erwin Haitzmann and Peter Hoetzinger, released a statement on the new sale-leaseback, saying that they are pleased to extend their partnership with VICI Properties.

The two executives said that the transaction will “unlock the real estate value” of the operator’s Canadian portfolio. At the same time, it will allow the company to grow its local footprint, while providing it with improved financial flexibility.

The co-CEOs announced their intentions to continue making the most out of Century Casinos’ capital, teasing some of their future plans:

We intend to use the sale proceeds to fund improvements at the Nugget and for general corporate purposes. We are also looking at the potential to apply some proceeds to paydown debt under our credit agreement and/or to return funds to shareholders through stock repurchases and/or a special dividend.

Erwin Haitzmann and Peter Hoetzinger, co-CEOs, Century Casinos

Century Casinos currently shared data concerning its financial performance in 2022, highlighting a double-digit growth.

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