• Sun. Jun 13th, 2021

Apollo Lack of Sportsbook Expertise Might Be Hurdle in Tabcorp Bid, Say Analysts

BySpeed Casino

May 10, 2021

Posted on: Might 9, 2021, 12:22h. 
Final up to date on: Might 9, 2021, 01:55h.

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Final week, Apollo International Administration (NYSE:APO) upped its bid for Tabcorp’s betting and media companies to $3.1 billion. However some analysts imagine the non-public fairness agency’s dearth of direct sportsbook operational expertise may hinder its dealings with the Australian gaming firm.

Scenes from the 2015 Melbourne Cup. Lack of Australia publicity may hinder Apollo’s run at Tabcorp belongings, say analysts. (Picture: New York Occasions)

Whereas Apollo has been actively concerned in sportsbook administration, it’s no stranger to the gaming enterprise. It not too long ago acquired Nice Canadian Gaming Corp. (GCGC) and is working with VICI Properties (NYSE:VICI) to buy the Venetian and Sands Expo and Conference Middle in Las Vegas for $6.25 billion. Final December, Apollo paid $1.15 billion to Worldwide Recreation Expertise (NYSE:IGT) for Gamenet Group S.p.A — an Italian digital gaming, gaming machine, and sports activities wagering operator.

As a part of its effort to get the Tabcorp deal achieved, Apollo supplied $500 million for the Australian firm’s gaming providers unit. It’s a enterprise that wasn’t initially a part of a strategic evaluation launched by the operator. MST Maquee gaming analyst Rohan Sundram referred to as that transfer an “added sweetener” on the suitor’s half.

With out that element, Apollo’s provide merely matches a revised bid of $2.7 billion from Entain Plc (OTC:GMVHY) for Tabcorp’s media and sportsbook arms.
For Apollo’s Tabcorp Ambitions, Problems Abound
An array of regulatory points in Australia may weigh on Apollo’s efforts to win what are considered as plum belongings from Tabcorp.

The seemingly existence of change of management provisions amongst [Tabcorp’s] a number of agreements with varied racing our bodies… additional complicate an already sophisticated matter and would take a while to barter by,” stated MST’s Sundram in an interview with the Sydney Morning Herald.

It’s not instantly clear if Australian regulators have a desire for an organization with an area footprint to purchase companies from Tabcorp. But when that’s the case, Apolllo might be hamstrung. Entain, which already operates within the nation, publicly made a bid, whereas Rupert Murdoch’s Fox Corp. (NASDAQ:FOXA) is contemplating a suggestion, too.
Varied state racing our bodies all through the nation might want to approve any divestment by Tabcorp. With Entain already licensed within the nation and Fox having deep ties there, both might be seen as a most well-liked purchaser over Apollo within the eyes of regulators.
Evans and Companions analyst James Fuller instructed the Herald that Apollo lacks world and native sports activities wagering operations, and that would hinder its run at Tabcorp. Conversely, Entain is a world sportsbook operator. Along with its Australian footprint, it’s one among Europe’s largest sports activities betting corporations, and it’s a rising power within the US by the use of its 50 p.c stake in BetMGM.
Apollo Desires Sports activities Betting Publicity
What comes of its run at Tabcorp’s media and sports activities betting companies stays to be seen. But it surely’s clear Apollo has some want to up its sports activities wagering profile on a world scale.
Along with the Gamenet Group acquisition, the non-public fairness large is seen as one of many main contenders in a coming public sale for William Hill’s European operations.
The Nice Canadian purchase positions Apollo to capitalize on single-game wagering there, and the latest acquisition of Yahoo! from Verizon provides it command of Yahoo! Sports activities, which is a media accomplice of BetMGM.

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