Super Group, the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, announced that, following the completion of an extensive internal review, the company intends to undertake an exit plan for its sportsbook product in the US.

The company, along with relevant regulators and partners, will shortly begin the process to fully close its U.S. sportsbook operations in the nine states in which it is currently live. Super Group will, however, maintain its iGaming presence in the US and plans to operate two iGaming brands from its Spin portfolio (including Jackpot City) in both New Jersey and Pennsylvania.

Chief Executive Officer Neal Menashe said: “As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate. We have recently concluded an extensive review of our U.S. operations and, at present, we do not see a long-term path to profitability for the sportsbook product.

“The vast majority of Super Group’s revenue is generated in iGaming and, in line with that strategy, we will continue to offer our leading casino product in New Jersey and Pennsylvania. We are open to expanding our U.S. footprint if the right investment or strategic opportunities arise.”

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Super Group, the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, announced that its Board of Directors has initiated a dividend program and declared the first cash dividend on its ordinary shares of $0.10 per share.

The dividend is payable on July 17, 2024, to shareholders of record as of the close of business on July 8, 2024. The company intends to pay regular dividends amounting to at least $0.10 per share annually, subject to approval of Super Group’s Board of Directors in its discretion and subject to other potentially advantageous uses of funds. The company will consider paying a higher dividend if business conditions allow. Beginning in the first quarter of 2025, the company’s intention, subject to Board approval, is to pay regular dividends on a quarterly basis.

Chief Executive Officer Neal Menashe said: “Super Group is delighted to be in a position to announce our first dividend, which delivers on our previously stated goal of returning cash to shareholders. Declaring a dividend shows our confidence in the company and our ongoing strength. We are especially pleased to be able to return capital to our shareholders, while looking to maintain our opportunities for growth.”

Super Group, the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, announced that it has entered into definitive agreements to assume full control of its sportsbook software technology licensed by Apricot, Super Group’s long-standing software partner.

The transaction brings Super Group closer to its goal of fully owning and controlling its sportsbook technology across its worldwide markets, giving the company the capability to apply this technology stack to any properties it may buy or build in the future.

Super Group has agreed to acquire this technology for a total consideration of c.€140 million from Apricot’s licensor, plus additional amounts payable if certain earn-out conditions are achieved. The upfront consideration consists of c.€100 million, which will be paid in the form of cancellation of an outstanding loan. Super Group will pay an additional €40 million in two equal payments over the next two years, of which up to €20 million may be paid in ordinary shares of Super Group at its sole discretion. Additional payments of up to €210 million could be made through a contingent earn-out mechanism if Super Group’s sportsbook revenue more than doubles during the earn-out period which runs through December 31, 2035. The earn-out is calculated as a percentage of monthly sportsbook net gaming revenue, ranging from a low single-digit to high single-digit percentage.

Neal Menashe, Chief Executive Officer of Super Group, said: “I’m delighted that we have now concluded terms for the sportsbook – we have been working closely to agree to an equitable deal with a favorable structure for both parties. This is an exceptional opportunity for Super Group to take full control of our sportsbook technology, which would enable maximum flexibility for organic growth as well as M&A opportunities. We’ll continue to deliver the best sports betting and gaming experience to our customers around the world as the benefits of this deal are realized.”

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