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Elys Game Technology Corp, an Italian interactive gaming and sports betting technology company, has signed a formal purchase agreement to acquire 100 percent of Bookmakers Company US LLC, a Nevada limited liability company doing business as US Bookmaking (USB).
USB is a sports wagering service provider that offers design and consultancy, turnkey sports wagering solutions, and risk management. Its management team is managed by Victor Salerno, a legendary sports book operator with over 40 years of expertise in the Nevada sports book industry.
Following the repeal of PASPA in 2018, USB began supplying services to the Santa Ana Star Casino in Albuquerque, New Mexico, and expanded its presence in New Mexico with service provider agreements at Isleta Resort & Casino and Santa Claran Hotel & Casino.
Odawa Tribe Michigan and 4 Bears Tribe
Following that, the company moved to Colorado with the purchase of the Sky Ute property, followed by deals with the Odawa Tribe in Michigan and the 4 Bears Tribe in North Dakota. USB signed a service deal in Washington, DC in 2021, with sports betting set to operate in the second half of that year. It also leased a skin for interactive business in Iowa, which was its first B2C transaction.
Elys will acquire 100 percent of USB, which will become a wholly owned subsidiary of Elys, under the terms of the agreement. Elys will pay $12 million under the provisions of the membership interest acquisition agreement, with half of it paid in cash and the other half in Elys common stock.
Members of USB will also be eligible for an additional $38 million plus a 10 percent premium (or $3.8 million) based on the attainment of specific EBITDA targets over the next four years, paying 50 percent in cash and 50 percent in stock.
Salerno said: “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 US sports betting market.
“We realised 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.”
Design-built solution for sports betting in the US
Elys Game Technology’s Executive Chairman, Michele Ciavarella, said: “Our team at Elys has worked diligently to prepare our leading-edge platform for the booming opportunity in the US market. Our focus has been to ensure that our future US clients are able to access a design-built solution for sports betting in the US that is locally supported with comprehensive trading, risk management, operations and maintenance teams for frictionless deployments.
“We are extremely pleased with the relationship that we developed with the founders and highly-experienced team at USB during our negotiations and the extensive synergies that we believe the combined entities have.
“We found great commonality between the family culture that Elys fosters in its Italian operations, as with USB and its business operations spanning a number of states in the US. We believe that our Elys Gameboard technology will give USB the tools they need to rapidly expand their current US footprint and potentially develop operations in the evolving Canadian sports betting market.”