Social gaming company DoubleDown Interactive announced it has entered into an agreement to acquire online casino gaming firm SuprNation AB in an all-cash deal.

First Post-IPO Acquisition

The acquisition of Swedish-based iGaming company SurpNation will cost DoubleDown Interactive €33 million ($35.4 million) on a cash-free and debt-free basis and will be subject to a final 2022 financial review.

Keuk Kim, chief executive officer of DoubleDown Interactive, was pleased to announce the company’s first acquisition since its IPO, pointing out that SurpNation’s business complements DoubleDown’s “existing social casino franchise” while also providing exposure to new markets which offer growth opportunities.

The acquisition of SuprNation increases our presence in the European iGaming market with other geographies expected to be added over time.

Keuk Kim, CEO, DoubleDown Interactive

Kim outlined that SuprNation’s “gaming titles and captivating gamification features have [already] created a loyal customer base that DoubleDown would look to grow further by “capturing synergy opportunities” in the online gaming space.

“As we evaluate inorganic growth opportunities, we will continue to focus on gaming businesses that offer clear synergies with our existing strengths,” Kim concluded.

Leverage Marketing and Operational Synergies

DoubleDown is expecting to leverage synergies through marketing, technology and gaming content, as well as back office in-sourcing and app development, utilizing SuprNation’s European presence and licenses from the UK, Isle of Man, Sweden, and Malta, as well as its established relationships with acquisition channels.

On behalf of Surpnation, co-chief executive officers Joakim Stockman and Henric Andersson outlined their excitement “to become a part of DoubleDown” while “looking forward to leveraging the strengths of both companies in the years to come.”

SuprNation’s unaudited preliminary review for the year-to-date ended September 30, 2022, showed revenue of approximately $18.3 million, and its flagship title, Duelz, features peer-to-peer gamification and social features in a real-money gaming environment that can be used for engagement and monetization.

As part of DoubleDown, we expect to accelerate our expansion and grow our real money gaming foothold through continued development of unique products and efficient marketing strategies.

Stockman and Andersson

Subject to satisfaction or waiver of certain customary closing conditions, the all-cash acquisition of SuprNation is expected to close in the second business quarter of 2023, and upon closing, SuprNation will become a wholly-owned subsidiary of DoubleDown Interactive LLC, DoubleDown’s US wholly-owned subsidiary.

The Share Purchase Agreement can be terminated by either of the sides if closing conditions are not met or waived within nine months after the execution of the agreement.

However, the passage of the new amendment would not actually make gambling activities legal on its own. Instead, it would allow the state legislature to have a say in this regard and vote for it.

The Bill, Referred to the House Committee on Judiciary

The new bill that has the support of representative Todd Rutherford was introduced in the state House on January 10. The amendment proposal has already been referred to the House Committee on Judiciary. 

Provided it would pass, it would enable the legislature to add a fresh section to the constitution, thus allowing various types of gambling to finally become a legal and palpable reality in the Palmetto State. The list would include a series of popular gambling activities, such as pari-mutuel betting on horse races, sports betting, and online casino games. 

In order for the state constitution to be amended in South Carolina, the bill would require two-thirds of the votes of the state House, followed by approval from referendum voting. The South Carolina Legislative Session, which is initiated on the second Tuesday of January of each new year, has taken off this Tuesday and will end on May 22, 2023.

The Ongoing Saga

Last February, the same representative from Richland County filed a different bill that would allow the legalization of sports betting, horse racing, card games, dice games, and electronic game devices in the state. 

The news came only days after state gubernatorial candidate Joe Cunningham also showed his official support for the legalization of sports betting, in the context of the massive number of American sports aficionados who were able to wager on Super Bowl LVI – something that the people of South Carolina were forbidden to do. 

In April 2022, House Bill 5277 was introduced in the state House with support from the same representative Tom Rutherford together with fellow representative William Herbkersman. If it had passed, the bill would have amended the current legislation and not the state constitution on its own, making wagers on sports legal. 

Last December, the US Attorney’s Office of the District of South Carolina announced an illegal gambling organization was discovered with the help of a joint investigation between Homeland Security Investigations and the South Carolina Law Enforcement Division. 

Bubba Technology Group, LLC which was operating its outlawed gambling business from Piedmont received its sentence in court. After pleading guilty, the company agreed to forfeit all of its illegal operation profits and bid goodbye to dozens of unlicensed gambling machines, on top of the additional money seized from gaming houses with ties with the organization.

Interactive gaming and betting technology supplier Elys Game Technology and provider of integrity solutions U.S. Integrity announced that they have entered into a partnership focused on the US.

Monitoring, Reporting, Analytics

The comprehensive partnership between Canadian-based Elys Game Technology and the sports betting integrity monitoring, reporting and analytics organization will provide event monitoring, market intelligence and fraud prevention to support Elys’ operations in the US and facilitate its North American expansion.

Michele Ciavarella, executive chairman of Elys Game Technology voiced the company’s contentment with the new partnership with U.S. Integrity as part of its preparation to further expand its presence across regulated gaming jurisdictions in North America, convinced that the collaboration could be beneficial for Elys.

“We expect that our partnership with U.S. Integrity could give us the ability to identify possible betting abnormalities in real time and enable potentially suspicious wagering activity to be identified immediately,” Ciavarella said, expecting that the partnership would “create a safe and engaging betting environment” for Elys’ customers.

With B2B operations in five US states and the D.C., Elys is providing end-to-end sportsbook services to online operators, retail betting establishments, and franchise distribution networks, and is planning to continue to expand its industry presence.

Local Business Sportsbook Model

At the core of Elys’ operations in the US is the company’s unique small business retail model powering sportsbooks for local and community-based businesses. Recently, Elys expanded its footprint in Ohio to over 100 local host locations ahead of the state’s official market launch.

On behalf of U.S. Integrity, chief executive officer and co-founder Matthew Holt expressed how proud the company is to establish a partnership with Elys Game Technology and support their operations with integrity monitoring, outlining the company’s mission is “to provide a conflict-free, best-in-class insights and compliance solutions” to its customers.

Holt also paid tribute to the exceptional team at Elys, working tirelessly on their North American expansion strategy to keep pace with the evolving market, as well as Elys’ commitment “to the highest integrity standards.”

“These types of partnerships help ensure sports betting integrity and strengthen the unique and proprietary anomaly-detection tools we have developed at U.S. Integrity,” Holt concluded.

Offering a customizable suite of services to cater to a wide range of customer needs, U.S. Integrity helps its customers ensure the highest integrity by providing monitoring, fraud prevention, education and consulting services.

Among its latest customers are Northwoods League, Miami Valley Gaming, Fitzdares, Gold Rush Gaming and others.

Online sports betting and gaming operator bet365 announced it has signed a multi-year partnership with the Cleveland Guardians to mark the arrival of its online sportsbook in Ohio.

Affirm Presence in the Cleveland Community

The agreement between UK-based bet365 and the MLB franchise, Cleveland Guardians, comes just days after Ohio officially launched its sports betting market on January 1, 2023, and at a time when the Guardians are bidding to retain their first AL Central title since 2018.

A spokesperson for bet365 commented on the development, expressing the excitement for everyone at the operator with the partnership, looking forward to becoming part of the exciting future of the Cleveland community where “The Guardians’ rich history is deep-rooted.”

The partnership made the Stoke-on-Trent-based online gaming operator the Guardians’ exclusive mobile sports betting partner and will provide a boost to the team led by American League Manager of the Year, Terry Francona, to its second consecutive year of success.

Vice president of Corporate and Premium Partnership at the Cleveland Guardians, Ted Baugh, spoke on behalf of the MLB franchise and expressed the team’s excitement “to work with bet365 as [its] exclusive mobile sports betting partner and welcome” the operator to Ohio.

“There is a tremendous bond between our organization and bet365,” Baugh continued, hailing bet365 as “one of the world’s leaders in online gambling,” and convinced that the operator will live to its fame and popularity among 90 million customers worldwide and provide the fans of the Guardians with “a trusted source” that will complement the Guardians “success on and off the field.”

Partnership Launch Approaching

Fans of the Guardians will see the new partnership for the first time at the Guards Fest at Huntington Convention Center on January 21, when the bet365 lounge will offer those aged 21 and over exclusive bet boosts and prize giveaways throughout the day.

Commenting on the upcoming festival, Baugh said that the Guards Fest “will provide… a great introduction to bet365 and give a glimpse of the many activations and entertainment opportunities” that will be available to the fans throughout the season and beyond.

“The Guardians are an elite franchise, with a passionate and loyal fanbase, and we’re excited to create fan-focused activations that give back to the faithful Cleveland baseball fans,” added the bet365 spokesperson.

A press conference on Thursday at the ballpark is expected to hear the club’s plans for upgrades to Progressive Field, including a sportsbook component in the new designs.

Outside of Ohio, bet365 recently expanded its presence in Pennsylvania via a new multi-year agreement with Churchill Downs Incorporated (CDI)’s wholly-owned subsidiary Presque Isle Downs & Casino.

Gaming Innovation Group (GiG), announced that it has signed a Head of Terms agreement with an “established land-based and digital casino operator in Switzerland.“ According to the iGaming supplier, it is to provide its critically-acclaimed account management platform (PAM) to its new partner.

GiG to Work with a Big Swiss Company

GiG emphasized that this agreement would mark its first foray into the Swiss iGaming sector. As a company that is experienced in producing cutting-edge gaming tech for complex regulated jurisdictions, GiG is delighted to open 2023 with news concerning a potential launch in a new market.

The company pointed out that this echoes the way in which it started 2022 when operators from all over the world expressed interest in its tech products.

GiG was founded in 2008 and has grown to be one of the leading providers of technology. This is all thanks to the provider’s innovative and proprietary products, which are now being used by operators in 29 markets. Currently, GiG is working to launch with partners in 7 additional regulated jurisdictions. Thus, the provider has a huge footprint, which fuels it with the experience it needs to keep on enhancing its products.

The Swiss online market, which launched in 2019, is still a largely untapped sector that is nevertheless very attractive to operators. Local retail operators are now looking to explore the opportunities the online market has to offer, making GiG’s entry into the country a timely one.

Gambling in Switzerland is regulated by the Swiss Federal Gaming Board, which currently has 11 iGaming licensees. GiG noted that, according to experts, online gambling in the country is expected to yield as much as $430 million in gross gaming revenue by 2024.

Entering Switzerland Is a Milestone for GiG

Gaming Innovation Group didn’t specify the operator it struck a deal with in its official release but said that the full deal should be signed somewhere in Q1 2023. The agreement is expected to go live a year later, sometime in Q1 2024.

GiG also noted that the agreement is planned as a five-year deal with options to extend it by more years at a later date.

Richard Brown, the chief executive officer of Gaming Innovation Group, said that the agreement with a notable company in Switzerland has long been one of GiG’s goals.

Partnering with an established and well-regarded retail partner in the Swiss market has long been a goal of ours, and this opportunity will allow us to showcase our market leading technology in another highly-regulated but growing market.

Richard Brown, CEO, GiG

In other news, GiG just parted ways with director Michael Ahearne who left the board to focus on his job as CEO of SkyCity Entertainment Group.