Genius Sports, which is headquartered in London, made a major announcement.
Genius Sports is a data collection company that specializes in sports-related data. They provide valuable sports management resources to its various partners, such as professional sports leagues.
Genius Sports and DMY Technology Group announced the two companies have started a merger. DMY, which is traded on the stock exchange as (DMYTU) is “a special service acquisition company.” DMY specializes in offering companies alternative options to an IPO.
These types of companies have gained in popularity in the last five months. The merger puts the total value of DMY at over $1.5 billion. According to new reporting by CNN, the merger will be complete by the first quarter of 2021. Non-named investors have reportedly contributed over $330 million investment capital to both companies to be used in the merger.
According to a source familiar with the terms of the merger, “The companies’ joint goal is to grow their sports betting holdings organically.” Genius Sports was founded only four years ago, and in that short time, has been able to acquire a very impressive list of sports betting providers.
Many More Super Mergers Are Expected
Financial analysts that monitor the sports betting industry have said, “Mergers like this are going to be commonplace moving forward.” Genius Sports has had a partnership with the PGA and the NCAA for over a year now. They have been adding accounts to their client portfolio in the last year, as this merger was in the works for a while.
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William Nixon, a third cousin of the late President Richard Nixon, now works with special accounts for Charles Schwab. Nixon said, “These types of mergers, between these specific types of companies, will make sports betting companies more appealing for investors.”
After the Supreme Court overturned a ban on sports betting in 2018, it paved the way for states to legalize sports betting. Now there are almost two dozen states that have legal sports betting. The sports betting market exploded faster than anyone predicted. The pandemic threw a monkey wrench into the new growing industry, with sports shutdowns.
As sports started to come back over the summer of 2020, the sports betting industry continued to grow and flourish. Several states have sports betting initiatives on their November 3rd ballots. Voters in those states will decide what the fate for sports betting will be in the states.
More States to Launch Sports Betting in 2021
Sports betting analysts say that there could be another dozen or so states that launch sports betting in 2021. Nixon of Charles Schwab said, “As far as other states having sports betting, it will all come down to the voters. A lot will depend on the various regulatory agencies in those states as far as a time frame for the exact launch dates.”
Even after COVID-19 put a kibosh on organized sports, states that already had sports betting up and running continued to prosper. Many of those states had online betting options. The pandemic also saw a surge in the popularity of esports, which continued to thrive during the pandemic.
Some sportsbooks got creative and started offering their customers a variety of esports to bet on. With people stuck in their houses, Carl Reed said it was a very natural transition for many players. Reed, a sports betting analyst for Fidelity Investments, predicts eSports to continue to expand.
Last month the biggest international sportsbook William Hill of the United Kingdom merged with Caesars Entertainment, in what insiders said was a multi-billion dollar deal. These types of mergers will continue, and the dollar amounts will be staggering.