- Sports Betting
- US Betting
- Daily Fantasy Sports
Scientific Games (SG) will buy Don Best Sports Corporation and DBS Canada Corporation according to the companies.The two are jointly known as Don Best.
Don Best is a “supplier of real-time betting data and pricing for North American sporting events.” Putting its capabilities together with SG’s B2B sports betting offerings creates a one-stop source for sportsbook solutions.
President and Chief Executive Officer of Scientific Games Barry Cottle:
“When it comes to sports betting, we’ve been moving at incredible speed, and the Don Best acquisition will add to our unrivaled B2B one-stop shop sports betting solution, already live in Delaware, New Jersey and Mississippi. As the leading global supplier of real-time betting data and pricing for the North American sports market, Don Best will bring their unparalleled proprietary pricing services to Scientific Games. As sports betting rapidly gains popularity in the U.S., we’re ready to help our customers capitalize on the new U.S. market while solidifying our long-held leading global position.”
SG expects the deal to close by the end of 2018.
The expansion of sports betting in the US is creating increased demand for sports betting data. As a result, an ownership reorganization of the industry is taking place.
In early July this year, SportRadar picked up two new private equity investors, the Canada Pension Plan Investment Board (CPPIB) and TCV. Their investment values SportRadar at €2.1bn ($2.4bn).
On July 30, Apax Partners announced an agreement to buy Genius Sports. Gabriele Cipparrone, partner at Apax Partners, said at the time:
“We have been attracted to the sports data market for some time, having seen live data and technology as key drivers of growth.”
No valuation numbers have been made public about the Scientific Games deal. However, it is clear that what was once a small industry is becoming much larger.
Cottle clearly sees the Caesars deal opening the door to future expansion to other US states:
“Caesars will have a truly open platform and end-to-end product suite that delivers the very best and flexible solutions and has proven success managing the largest share of the world’s online bets, more than 2 billion online bets annually. Our SG Digital team is excited to help Caesars stay ahead of the game, as they work to expand their sports betting, digital and mobile offerings into newly regulated markets.”
The Don Best acquisition feeds into the same strategy. Keith O’Loughlin, SVP Sportsbook for SG Digital, explained:
“The impending acquisition of Don Best will be a huge win for us and all of our stakeholders. Don Best already seamlessly integrates into our OpenBet platform, so they will be able to hit the ground running and guide our customers through the process of launching a sportsbook after the deal closes.”
Scientific Games is staking out a sizable piece of the new US sports betting industry. This won’t be the last deal we see in the data segment of the market because the young industry is growing.