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Wynn Interactive Headed for Public Listing via a $3.2b SPAC Merger
By Jeff Osienya May 17, 2021 IndustryWynn Resorts’ online casino and sports betting arm becomes the latest gaming company to seek public listing after business combination with a SPAC. Read on for more details about the planned merger for launch on the Nasdaq Stock Exchange.Wynn Interactive Ltd, the internet gaming and online sports betting subsidiary of Wynn Resorts Limited, is preparing for launch on the Nasdaq after penning a merger agreement with Austerlitz Acquisition Corporation I.
Austerlitz I is a newly incorporated Special Purpose Acquisition Company (SPAC) founded by William P. Foley, a multi-millionaire investor famously known for owing the Las Vegas Golden Knights NHL team.
The post-transaction enterprise price tag for this landmark deal for Wynn Interactive is estimated to be a whopping $3.2 billion. This valuation is 4.5x the projected revenue for Wynn Interactive in 2023. After a successful merger, the new company will start trading on the Nasdaq Stock Exchange as a standalone entity under the ticker symbol “WBET.”
After the new agreement was announced, Craig Billings, the Wynn Interactive President and Executive Director voiced his excitement at the prospect of growth via a public listing in the following briefing:
Quote“Wynn Interactive is rapidly establishing a leadership position in what will ultimately be a $45 billion North American online sports betting and iGaming market through our relentless focus on product features, user experience, and customer service. We look forward to working with Bill Foley and Austerlitz I to support Wynn Interactive’s long-term growth.”
Likewise, Matt Maddox, the Wynn Resorts CEO and Chairman of Wynn Interactive, released an official statement saying:
Quote“We are confident that this transaction will unlock the tremendous potential of Wynn Interactive to further accelerate growth and enable the business to capture the massive opportunity in North America. Bill Foley is the ideal partner to ensure continued success – his track record with business combinations, extensive experience growing marquee consumer brands, and partnering to maximize value in businesses like ours will be invaluable as we continue scaling,”
Key Components of the Wynn Interactive – Austerlitz I Business Combination
After the merger is complete, the Nasdaq-listed Wynn Interactive is expected to have about $640 million in cash on its balance sheet. These funds will be injected into the combined company’s operations to facilitate its current and future growth initiatives.
Assuming that none of the public investors of Austerlitz I will redeem their shares, the shareholders of the privately held Wynn Interactive (before Nasdaq listing) will own about 79% of the combined business. Further, the said shareholders will have 72% voting interest and 58% equity interest by Wynn Resorts Ltd. On the other hand, the shareholders of Austerlitz will hold roughly 18% of the merged entity, and finally, the sponsor of the SPAC will own about 3% of the newly combined company.
After the merger is closed, Matt Maddox will retain his position as Chairperson and be flanked by Craig Billings, who will continue serving as President and Executive Director. Additionally, Sadok Kohen, the co-founder of Wynn Interactive, will maintain his CPO and Director roles. Finally, the man of the hour, Mr. William Foley, will take the position as the Director of the board of the new company after it starts trading on the Nasdaq.
William P. Foley also had good things to say about the Wynn Interactive – Austerlitz I deal as follows:
Quote“I am excited to be a partner and future owner of Wynn Interactive. Wynn is the premier brand in gaming and luxury resorts and we believe our investment in Wynn Interactive fits the criteria for the type of company and management team with which we like to co-invest. I’m optimistic about the future of U.S. online casino gaming, and sports betting and am confident in the ability of Matt and the Wynn Interactive team to execute the business plan and exceed their financial projections against what will be a massive addressable market.”
Another Gaming Company Jumps into the SPAC Bandwagon
With the new arrangement, Wynn Interactive joins the list of gaming brands that have lately merged with a SPAC or blank check company to become public companies.
Genius Sports made its debut on the NYSE after closing its merger with dMY II SPAC in mid-April. In the same month, Super Group, Betway’s parent company, also announced its intention to start trading on the NYSE. The Betway holding company inked a merger deal with a blank check company known as Sports Entertainment Acquisition Corp to fast track its journey to public listing.
Wynn Interactive serves the U.S. and U.K. markets with a slate of top-tier online and mobile casino and sports betting channels via its WynnSLOTS, BetBull, and WynnBET brands. As we speak, in the U.S. market, the WynnBET brand is operating in Tennessee, Indiana, Virginia, Michigan, Colorado, and New Jersey. Moreover, the WynnBET has already received market approvals in nine more U.S. states and will be breaking ground in the said states in the coming months.
So, by the end of 2021, Wynn Interactive will have its footprint in 15 U.S. states which translates to covering about 51% of the entire country’s population. In the near term, the gaming giant has expansion plans in place, and it expects to cement its position in the U.S. gaming market to gain access to 77% of the U.S. population.
As for affiliations in U.S.A.’s sporting world, the WynnBET brand is the official partner of Detroit Pistons and Memphis Grizzlies NBA teams. It is also the authorized gaming operator of NASCAR.
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