Ex-FanDuel executives launch $200m US online gaming SPAC

Former FanDuel and Barstool Sports executive David VanEgmond and ex-FanDuel board member Paul Martino have launched a $200m SPAC on the Nasdaq. Bullpen Parlay Acquisition Co began trading on the US stock exchange on Friday following the completion of a $200m IPO of 20 million shares at a price of $10 apiece. Each unit offered consists of one Class A ordinary share and half of a warrant. Whole warrants can be redeemed for one ordinary share at a price of $11.50. The SPAC, the latest to target the US igaming and sports betting market, is backed by VanEgmond, a current partner and serial investor at Bettor Change and Martino, a managing partner at US-based venture capital firm Bullpen Capital. Martino will serve as executive chairman of the SPAC, while VanEgmond will operate as its first CEO. Bullpen Capital partners Eric Wiessen and Duncan Davidson will occupy the president and executive vice president roles respectively. The fledgling SPAC has also garnered support from a number of industry veterans, who will all become directors of the business. These include former Pala Interactive chief social gaming officer Brett Calapp and ex-Las Vegas Sands and former Caesars EVP and chief information officer Les Ottolenghi. Rounding out the board appointments is igaming capital’s Melissa Blau. VanEgmond and Martino have considerable experience of M&A activity, having been present during FanDuel’s acquisition by Flutter Entertainment and in the case of VanEgmond, Penn National Gaming taking a 36% stake in Barstool Sports for $163m. The SPAC is targeting an initial acquisition within the first 18 months of operation, with agreements in place to terminate the arrangement should this not occur. “We believe the online real money gaming, technology, sports, digital media, hospitality and leisure industries possess attractive potential business combination targets that have ample opportunity for growth and the potential to provide long-term shareholder value,” the prospectus states. Virtually unused by operators prior to 2018, the SPAC-merger has risen rapidly to become a popular route for US firms seeking to go public, largely due to the simplicity of transaction when compared to a more traditional IPO listing. Prominent operators who have chosen to go public via a SPAC include DraftKings, Rush Street Interactive, Super Group and Genius Sports. It is not all plain sailing , however, as in recent months, Sportradar and Wynn Interactive have all chosen to walk away from SPAC discussions for varying reasons.