SPAC Provides Novibet With Cash To Expand Online Gambling Footprint in NJ, PA and beyond

Novibet Plans To Offer Online Gambling In Seven US States, Plus Ontario And Mexico

Novibet is a European online gambling operator that might as well use this pickup line, “you don’t know who I am, but you’re about to.”

Starting this year, the Malta-based operator plans to launch new online gambling sites in nine North American markets.

These plans start with a Pennsylvania online casino and sportsbook. From there, Novibet plans to launch iGaming and online sports betting in Mexico in Q3 2022. Then Novibet expects to enter Ontario under its own “license” during Q4 2022, according to a Novibet press release on March 30.

After obtaining an operating agreement to offer Ontario online gambling and being approved to launch there, Novibet wants to move on to launch New Jersey online casino and sports betting during the first half of 2023.

Even more states for Novibet

That’s not all. In 2023 and 2024, Novibet has plans to launch in five additional states:

  • Indiana (iGaming and sports)
  • Louisiana (iGaming)
  • Iowa (iGaming and sports)
  • Missouri (OSB), and
  • Mississippi (OSB)

In other words, Novibet plans to go from being in zero parts of America to seven US states within two years. Of course, the iGaming portion of that is a tad optimistic, since none of those states have legalized it yet. Indiana tried this year, but failed, while Louisiana and Iowa lawmakers haven’t even started.

At the moment, the operator mainly known for online casino games operates in Greece, Ireland, Italy and Malta.

About 68% of Novibet’s 2021 net gaming revenue came from iGaming, with the rest generated by online sports betting.

A SPAC will provide Novibet’s funding

These plans from from a March 30 press release to announce Novibet’s decision to go public. It will do so thorough an agreement it entered with Phoenix-headquartered Artemis Strategic Investment Corporation. Artemis is a publicly traded special purpose acquisition company (SPAC). This has been the preferred path for online gambling operators looking to become publicly-traded in recent years.

Before the SPAC, Novibet was valued at $625 million. Novibet calculates the deal will give it $135 million “of unrestricted cash” to accomplish its global expansion goals.

Artemis will merge into a new wholly-owned subsidiary of Novibet.

Novibet’s announcement has a tone of certainty about its goals:

“Novibet has entered into market access agreements for iGaming in Pennsylvania and is finalizing market access agreements for six additional US states, while seeking a direct license to operate in Ontario and in other Canadian provinces as they become regulated.”

Part of that optimism may stem from Novibet owning its own tech platform, which cuts down on costs.

The press release mentioned:

“New user breakeven time from first deposit of cost of acquisition has improved to 43 days in 2021 from 146 days pre-2019, despite a simultaneous increase in marketing spend.”

Artemis stock rose from $9.91 on March 29 to $9.97 on Friday.

- Heather Fletcher is the lead writer with OnlinePokerReport. She's a career journalist, with bylines in The New York Times, Adweek and other publications. Reach her at [email protected]
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