US Bookmaking Sells Out to Elys Game Technology
U.S. Gambling Business Establishment Founded by Victor Salerno Struck Deal with Italian Betting Corporation
Get ready for some major shakeups in the sports betting world! US Bookmaking, a trailblazer in the post-PASPA era, has just announced its sale to Elys Game Technology, a leading player in interactive gaming and sports betting tech.
This juicy news dropped in a Wednesday morning press release and could fetch the US Bookmaking team up to a whopping $50 million over the next four years. The impressive team, led by founder Victor Salerno, includes Bob Kocienski (CEO), John Salerno (Director of Operations), and Robert Walker (Director of the Sportsbook).
Launched post-PASPA, US Bookmaking kicked off its operations in New Mexico with a splash at the Santa Ana Star Casino in Albuquerque. They then expanded to include Isleta Resort & Casino and Santa Claran Hotel & Casino. Next up? Colorado's legal sports betting market, followed swiftly by deals with Michigan's Odawa Tribe and North Dakota's 4 Bears Tribe.
In the first quarter of 2022, US Bookmaking secured a deal in Washington, D.C. with plans for a sportsbook opening later this year. Most recently, they secured their first B2C deal, leasing a skin in Iowa.
Victor Salerno shared his excitement about the deal, saying, "We've built a top-notch team of seasoned bookmakers with a vision to dominate the U.S. sports betting market. With the hefty expansion opportunities on the horizon, we needed a tech partner who knows the business inside and out."
Salerno also shared that the timing of the acquisition couldn't be better considering US Bookmaking has been vetting the technology field and preparing for the reopening of their client casinos as the COVID-19 pandemic subsides. With Elys' proprietary sports betting platform, US Bookmaking can customize features for their clients while maintaining control of their cost structure.
The deal is slated to close by July 15, with Elys forking over $12 million upfront, half in cash and half in stock. The remaining $38 million will be contingent on certain EBITDA milestones over the next four years, with half paid in cash and half in stock.
Michele Ciavarella, executive chairman of Elys Game Technology, expressed his enthusiasm about the deal, stating, "Our team has worked tirelessly to prepare our leading-edge platform for the U.S. market, ensuring a customizable, locally supported, and frictionless solution for our upcoming U.S. clients."
Italian-based Elys is no stranger to the world of legalized gambling, having served as a B2B gaming tech company with a suite of online and brick-and-mortar operations in the country. With the sale of US Bookmaking, Elys hopes to expand its U.S. footprint and even potentially enter the evolving Canadian sports betting market.
So buckle up, folks! The U.S. sports betting market is heating up with consolidation, strategic positioning, and exciting growth opportunities on the horizon. Stay tuned for more developments!
The Present and Future of the U.S. Sports Betting Market
The U.S. sports betting market has taken off since the Supreme Court's repeal of PASPA in 2018. By 2024, the market is expected to have ballooned to over $150 billion in legal wagers and a value of over $11 billion [3][5]. The industry is projected to grow by 11% annually from 2025 onwards.
Several factors contribute to the market's growth potential:
- Legal Expansion: In 2023, 36 states have legalized sports betting, a trend set to continue [2].
- Technological Advancements: Online betting platforms and mobile apps are transforming the industry, making it more accessible and convenient for bettors [2].
- Market Competition: Key players like DraftKings and FanDuel dominate the market, but there's room for newcomers to carve a niche [5].
- Regulatory Environment: Favorable regulatory conditions are expected to further fuel market growth [2].
The sale of US Bookmaking to Elys Game Technology is one of several mergers and acquisitions aimed at increasing market share and profit margins in the rapidly evolving sports betting industry [2]. The impact of such deals on the broader market remains to be seen, but they're sure to spark competition, innovation, and more opportunities for growth in the U.S. sports betting landscape.
- With the acquisition of US Bookmaking by Elys Game Technology, the risk for smaller bookmakers in the sports betting market might increase due to consolidation and increased competition from the combined entity.
- The US Bookmaking team, led by seasoned bookmakers like Victor Salerno, Robert Kocienski, and John Salerno, plans to leverage Elys' technology to customize features for their clients while maintaining control of their cost structure, likely modernizing their wagering lines and sports betting offerings.
- The sale of US Bookmaking to Elys Game Technology marks a significant step in the sports betting industry, particularly as technology continues to play a crucial role in shaping the sector. This deal signifies an intent to capitalize on the growing sports betting market, estimated to reach over $150 billion in legal wagers by 2024 [3][5]. The potential entry of Elys into the Canadian sports betting market could further expand the reach of sports betting technology, potentially impacting the line, risk, and wager dynamics in both the US and Canada.
