Monday December 4, 2023

Sports Betting Keeps the SPAC Surge Going

  • Some market analysts wonder when the SPAC surge will end, but sports betting could keep it aloft for some time to come.
  • DraftKings and other sportsbooks have gone public via SPAC.
DraftKings, IA Architects/Design: Alex Brooks
Linkedin
Copy Link
Link Copied
Link Copied

The ongoing torrent of SPAC money has many market observers wondering when the flow will dry up, but another growing sector might keep the investment trend going a while longer: sports betting.

SPACs, shell companies that raise money to acquire a private company and take it public, have become an incredibly popular trend among athlete and celebrity investors. They have also become a vessel through which investors can quickly pour money into the sports betting industry.

DraftKings went public through a SPAC merger in April 2020, and has seen its stock rise over six-fold since its launch. Rush Street Interactive and Golden Nugget Gaming, which have both online casinos and sportsbooks, also went public via SPAC.

The tech landscape underlying sports betting operators features a diverse group of companies that have been SPAC targets as well.

Sportradar, a major sports data provider with partnerships with the NBA, NFL, NHL, and MLB, is considering going public via SPAC, as is one of its top competitors, Genius Sports.

A December report on the sports betting industry counted three publicly traded sportsbooks and 15 technology companies related to the betting and gambling industry. The related iGaming industry — online betting where customers can win real money — has attracted $5.7 billion in SPAC acquisitions since 2020.

With Goldman Sachs predicting that the sports betting market will reach nearly $40 billion by 2033, money will keep pouring in through one source or another for a piece of that enormous pie.

Linkedin
Copy Link
Link Copied
Link Copied

What to Read

U.S. Sports Betting On Pace To Hit $100B In Wagers

Sports wagering activity accelerating to unprecedented levels.

Las Vegas GP Smashes Records For Sportsbooks

High-profile Formula 1 event proves to be popular with bettors.

ESPN Bet’s ‘Blueprint’ For Success Has An Unexpected Origin Story

PENN Entertainment looks to replicate success seen with Canada's theScore.
podcast thumbnail mobile
Front Office Sports Today

CFP Selection Turns Heads with Controversial Selection

0:00
0:00

Featured Today

The College Football Playoff is considering rotating TV networks for the national championship game.

CFP Considers Super Bowl-Like Rotation For National Championship Game

Multiple networks could share rights to the championship game, sources told FOS.
Brett Favre
November 27, 2023

Favre Welfare Case Hold-Up? "AG’s Office Has Not Expressed Interest In Pursuing"

The DOJ interviewed Brett Favre in early 2020.
The future of the Pac-12 rests on a court decision.
November 24, 2023

The Pac-12 Plays Its Final Regular-Season Game. Then A Court Decides Its Fate.

The conference's future rests with a court decision.
Lane Kiffin
November 9, 2023

Ole Miss, Lane Kiffin Lawyers Argue for Dismissal of Player Lawsuit

FOS obtained audio of Lane Kiffin's interaction with the player behind lawsuit.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Wasserman
Multiple - USA Careers
Live Nation
Multiple - USA Careers
Saco Bay PT
Multiple - USA Careers
The swoosh logo at Nike Eugene.

Nike Misses Revenue Wall Street’s Projections, But Company’s Stock Soar

The company offset the shortfall by exceeding expectations in earnings per share.
June 30, 2023

Nike To Revive Kobe Signature Shoe Line

Late HOFer will again be the center of a signature shoe line.
The PGA Tour and PIF have a self-imposed Dec. 31 deadline to finalize their golf merger.
August 7, 2023

Saudi Arabia’s PIF Aims Higher With Launch of Sports-Focused Investment Company

The PIF has launched a new company, SRJ Sports Investments.
Sponsored

NHL’s Chris Foster on Amplifying Content Distribution With Automation

Learn how the NHL is using WSC Sports to increase fan engagement.
At Dick's Sporting Goods in Fairless Hills, Store Administrative Assistant Christine Vandfermay, of Philadelphia, restocks some Philadelphia Eagles items.
May 23, 2023

Dick’s Sporting Goods Sees Modest Growth, Less Foot Traffic

Dick's Sporting Goods saw a 5.3% increase in net sales in Q1.
Hellen Obiri of Kenya crosses the finish line to win the women's division at the 2023 Boston Marathon.
May 16, 2023

On Wants More Star Power, Visibility for Next Growth Phase

On is looking to grow through tennis and other verticals.
Topgolf
May 11, 2023

Topgolf Callaway Lowers Sales Expectations

Callaway cut its profit forecast for this year.
Endeavor
May 10, 2023

Endeavor Posts Record Quarter Amid UFC-WWE Merger Plans

Endeavor bought WWE in April, it also sold its IMG for $1.25B.