Elys to acquire sports betting services provider U.S. Bookmaking

Interactive gaming and sports betting technology company Elys Game Technology announced Wednesday that it has entered into a definitive purchase agreement to acquire a Nevada limited liability company doing business as U.S. Bookmaking (USB).

USB, founded in 2016, is a provider of sports wagering services such as design and consulting, turn-key sports wagering solutions, and risk management.

USB’s management team includes sportsbook operator Victor Salerno, President, with over 40 years of experience in the Nevada sportsbook business managing risk for over 100 properties; Bob Kocienski, CEO, with over 40 years of experience in the gaming industry including oversight on the sportsbooks at several casinos; Robert Walker, Director of Bookmaking, with over 30 years of experience in managing sportsbooks at several casinos including the Stardust, Mirage, and the MGM; and John Salerno, Director of Operations and Compliance with over 20 years of experience in the sports wagering industry.

Per the terms of the deal, which is expected to close by July 15, Elys will acquire 100% of USB, which will become a wholly-owned subsidiary of Elys. Pursuant to the terms of the membership interest purchase agreement, Elys will pay $12 million on the closing date, of which 50% will be payable in cash and 50% in shares of common stock of Elys at a price equal to the volume-weighted average price of Elys stock for the 90 trading days preceding that date.

Vic Salerno, President, and founder of USB noted: “We started US Bookmaking with a vision to build a top-ranked team of experienced bookmakers in light of the looming repeal of sports betting prohibition in the US. Since 2018, our team and customer network have been building quickly and we are very optimistic about the expansion and growth opportunities developing in the U.S. sports betting market. We realized that to effectively compete and grow with this opportunity we needed a viable technology partner that knows the sports betting business extremely well."

"Having visited the Elys trading floor in Italy, we are very impressed with the work that the Elys team did to Americanize their sports betting technology. We believe the timing of this acquisition is ideal for USB since we have been vetting the technology field for the best sports betting technology while getting ready for the reopening of our clients as the COVID pandemic subsides. The addition of a proprietary sports betting platform will allow USB to customize features that our clients desire while having full control of our cost structure. We look forward to working with the ELYS team to complete the transaction as quickly as possible,” Salerno added.

Each of the parties Boards of Directors has unanimously approved the membership interest purchase agreement and the proposed transaction on a preliminary basis.