Endeavor: We will be in same “peer group” as Sportradar and Genius Sports

Endeavor has confirmed it expects its newly acquired OpenBet platform to generate $150m in revenue by next year. The UFC and IMG Arena owner sealed the $1.2bn purchase of the sports betting platform from Las Vegas-based supplier giant Scientific Games this week and has outlined its financial expectations from its new subsidiary. Endeavor said the merged business unit of OpenBet and IMG Arena is expected to generate $340m of pro forma revenue before synergies by the end of 2022. The expected $150m in revenue generated by OpenBet follows the assumed trajectory of the platform which Endeavor hopes will deliver a 23% CAGR from 2020 until the close of 2022. OpenBet, which processed around three billion bets for more than 75 sportsbook customers in 2020 and employs more than 1,000 people in 10 countries, achieved $100m in revenue in 2020. It expects to post 2021 revenue of $117m. Endeavor said the new unit would return an approximate $100m incremental run-rate revenue at market maturity. Jason Lublin, Endeavor CFO, said the deal would put the company on the same level as established data giants in the industry. He said: “We believe that the comprehensive relationship base and unique end-to-end solution that will be created by this combination will put us in the same peer group as entities such as Sportradar and Genius Sports. “Once combined with IMG Arena, we plan to maximise operational efficiencies and expect to achieve meaningful synergies,” he added. Ariel Emanuel, Endeavor CEO, commented: “[OpenBet is] a strategic asset that complements our sports betting business IMG Arena. When you overlay OpenBet, you will have a one-of-a-kind global and scaled operation. “With an offering that now spans the entire sports betting value chain. We expect to efficiently capture market opportunities driven by the increased legalisation of sports betting among US states and global territories.” The company also said the new unit would hold its own reporting segment in future financial reports. Endeavor, which saw its shares on the Nasdaq rise almost 6% in trading yesterday, noted the deal is expected to close, subject to regulatory approvals and conditions, by Q2 2022.