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The SPAC takeover of US online gambling shows no sign of slowing down.
Two new SPACs – short for “special purpose acquisitions companies” – have emerged. These are companies whose only reason for existence is as a vehicle for investors to acquire other companies, usually privately-owned ones. Both the new SPACs are looking to acquire companies in the online gambling space.
The first, Tekkorp, listed today on the the Nasdaq Capital Market under the ticker TEKKU. This investment vehicle is led by former NYX chief Matt Davey as CEO, with former Fox Bet CEO Robin Chhabra as president.
The board features additional online gambling heavy-hitters, including Resorts owner Morris Bailey and former Caesars CEO Tony Rodio.
Facebook’s VP of business platform partnerships Sean Ryan will also sit on the board.
Tekkorp will initially list with a value of $250 million, and look for an acquisition of at least $1 billion.
“We intend to focus our search for a target business operating in the broader digital media, sports, entertainment, leisure and/or gaming industries,” the company said in its initial filings.
By law, SPACs cannot have a target lined up when they launch. They typically announce one not long after going public, however.
The Tekkorp listing will be followed by another potential gambling SPAC, Acies Acquisition Corp. Acies is currently expected to list in early December.
Former MGM CEO Jim Murren is among the founders, while Eilers & Krejcik partner Chris Grove will be executive VP of acquisitions.
Monumental Sports Network VP Zach Leonsis will sit on the board.
According to an SEC filing, Acies is focusing on:
The filing said Acies will look at B2B and B2C acquisitions and be primarily focused on the US. Its initial public offering price will be $200 million.
The new blank check companies are the latest in a line of SPACs investing in US online gambling.
Data firm Sportradar is also planning to acquire a company for around $350 million, and could go public after that.