Kings Entertainment Group and Sports Venture Holdings (SVH) on Tuesday entered into a business combination agreement. SVH is a holding company of subsidiaries that operate the Bet99 brand, one of the largest online sport and casino betting websites that accept players from Canada, a market that has seen a significant boost after Ontario's iGaming launch on April 4.
When the LottoKings and WinTrillions parent company Kings Entertainment began trading on the Canadian Securities Exchange in late January, the new listing was expected to provide the Vancouver-based business with access to a broader capital base and accelerate its global expansion plans, including M&A transactions.
"The combination of Kings Entertainment, a company led by pioneers of the international online sports gambling industry, and SVH, the parent company of operators of the market-leading Bet99 brand, will be transformative for the Canadian sports betting sector," said Steve Budin, CEO of Kings Entertainment. "Our vision for Kings has always been to build leadership positions within each of the regulated jurisdictions that we enter, and this agreement will certainly accelerate that goal within the Canadian landscape and beyond."
"Merging with an internationally recognized online betting veteran such as Kings is a natural next step for SVH," said Jared Beber, CEO, of Sports Venture Holdings. "Bringing the Bet99 brand to the public capital markets, through Kings' CSE and OTC listings, will not only support expansion by engaging a much broader investor base, but will also build the Bet99 brand with an even wider audience of betting enthusiasts."
Current Bet99 CEO Jared Beber will take on the CEO role of the merged company, with Budin continuing to lead LottoKings operations and acting in an advisory role. Former CEO and Founder of international gaming giant Bragg Gaming, Adam Arviv, will step into the Executive Chair role of the combined entity. Arviv is credited with the 2021 turnaround of Bragg Gaming, where he eliminated $50M of debt, built a strong balance sheet with $45M in cash and zero debt, and took the stock from $0.20 to $3.00, according to an official statement.
The combination is subject to shareholder approval and the approval of the Canadian Securities Exchange (CSE). If completed, trading in the common shares of Kings Entertainment will be halted until the resumption of trading is approved by the CSE.