Eddie Jordan, the Irish businessman made famous by his Formula One performance, is leading a $1 billion bid for sports betting platform OpenBet. The interest was reportedly confirmed by former Australian Formula 1 driver Mark Webber in an Instagram post, who described the deal as a ‘mega acquisition in the gaming sector’.
Scientific Games put OpenBet up for sale last month after conducting a review of its strategy, aimed at significantly leveraging its growth. The group has seen a substantial increase in its corporate debt over the past decade, with the acquisition of Bally’s Technology for $5.1 billion in 2014, compounding the problem.
Reducing this debt was a company objective, even before the financial turmoil caused by the COVID-19 pandemic. Debt currently stands at $9.5 billion, more than $4 billion above the company’s market capitalization of $5.40 billion.
Selling OpenBet Can Help Solve Scientific Games’ Financial Problems
Managed by Ethan O’Loughlin, Scientific Games’ US-focused OpenBet division is valued at $6.2 billion and handles about $10 billion in wagers annually. The division employs around 1,100 employees and serves leading international bookmakers.
As the global sports betting market continues to grow rapidly, the sale of OpenBet is seen as a solution to Scientific Games’ financial problems, as the group expects several interested parties in the business.
O’Loughlin, former CEO of Irish bookmaker BoyleSports Online, director of Coral before its merger with Ladbrokes and executive vice president of OpenBet before its sale to SGC by NYX Gaming Group, is in favor of the proposed proposal. by Jordan because of his friendly relationship with the Irish businessman.
Outside of his role in the planet’s leading motorsport category, Eddie Jordan has already been involved in several other investments in the betting and gaming industry, in addition to the football, golf and energy and alcoholic beverages sectors.
