SPACs Continue Being a ‘Central Piece’ of US Sports Betting Regardless of ‘indigestion’
Simultaneous to SPACs’ state-by-state expansion, more and more operators are being lured by the potential of public listings, achieving of which SPACs could still try putting effort in, as stated by a number of industry experts at the SBC Digital North America event
“M&A is strong today. Could it be we’re living through the ‘Golden Age’ of American sports betting?”
Considers Greenlaw Limited director Anton Kaszubowski.
Matt Davey, Tekkorp CEO, acknowledges:
“SPACs has great potential of being a quite practical way for brands to go public. Traditional IPOs have a disadvantage, from investors’ point of view, of only ever showing them historic revenues, whereas the majority of investors are looking to looking over and pinpointing forecasted earning.
We must not try to pain all of SPACs’ attributes with one paintbrush, as even though some of them suit the industry, it is not a one-size-fits-all process for every single company out there”
Despite the CEO’s acknowledgement of the ‘indigestion’ that had to do with the immense mass of capital investments, he is determined about SPACs’ continuous role for those specific firms that claim public listing as a central business goal.
Lloyd Danzig, Founder and Managing Partner of Sharp Alpha Advisors, agrees with Davey about the existing ‘indigestion’ and adds a more optimistic view of things regarding the demand for SPACs in the future.
“This is a genuine product and, knowing the gaming industry and how it operates, and even though the demand for SPACs has potentially cooled off a bit, I am positive in the probability off growth for this product over time. I believe that in the years to come, we will all witness SPACs become a fundamental piece of the capital market’s ecosystem.”
In the meantime, Wayne Kimmell, Managing Partner at SeventySix Capital, shows an entirely positive and supportive attitude towards private firms making use of the SPACs as a way of gaining public listing, by highlighting key investments such as FuboTV’s acquisition of Vigtory and DraftKings purchase of VSiN.
“We are excited about the fact that many companies could potentially utilise SPAC to go public. There are currently over 100 exciting SPACs that are searching to target private companies.”
Making mention of Kimmel’s interest in DraftKings buyout of VSiN, Joe Asher (William Hill US CEO) adds further to the topic, saying:
“Despite there being quite a lot of enthusiasm, the US market is still at its developmental stages.”