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Endeavor Looking for Buyers for Sports Betting Biz, Including OpenBet

The sports betting and data division of Endeavor Group Holdings, Inc. (NYSE: EDR), which includes OpenBet and IMG ARENA, is looking to sell.

According to the corporation, the divestitures are a part of a plan to part with a few assets before the $13 billion go-private deal with venture capital firm Silver Lake, which was revealed in April. Endeavor, a Los Angeles-based company, released its second-quarter earnings earlier today.

"During the quarter, we began to actively market the businesses comprising the Sports Data & Technology segment, OpenBet and IMG ARENA. As such, for financial reporting purposes, these businesses are considered Held for Sale and the Sports Data & Technology segment is presented as discontinued operations in the Q2 2024 consolidated interim financial statements. During this process, these businesses will continue operating as usual,” according to a statement.

The business did not disclose if it has already had discussions with any possible buyers or provide an estimate of the price at which it would sell OpenBet and IMG Arena.

Try to Sell OpenBet as Soon as Possible After Purchasing

After declaring in September 2022 that it would pay $1.2 billion to the company formerly known as Scientific Games for the business, Endeavor is moving fast to sell OpenBet.

After Light & Wonder (NASDAQ: LNW), previously Scientific Games, secured $700 million in after-tax revenues, the purchase price of OpenBet was lowered to $800 million in June 2022 from the initial $1 billion in cash and $200 million in stock.

OpenBet was merged into the Professional Bull Riders (PBR), Euroleague, and UFC under Endeavor's Owned Sports Properties division.

In order to complement its IMG Arena business, which offers sportsbook operators data and other technology, Endeavor positioned the acquisition of OpenBet. A technological arms race is emerging in the sports betting sector, so now would be a good time to sell the unit. It's unclear if Endeavor will break even on OpenBet, make money, or lose money.

OpenBet Has Several Owners

Since its founding as Orbis Technology in 1996, OpenBet has had numerous owners during the course of its almost three decades in operation. Orbis was purchased by News Corp.'s NDS Group in 2000.

Ten years later, Orbis became OpenBet, and in 2011, NDS sold the sports betting technology company in a management-led buyout backed by Virtuvian Partners, a private equity group. OpenBet was acquired by NYX Gaming Group five years later. After acquiring NYX in 2016, Scientific Games merged OpenBet into its SG Digital division.

OpenBet lists BetMGM, DraftKings, FanDuel, Paddy Power, PointsBet, Super Group, and William Hill among its clients on its website.