Tekkcorp Capital President and CEO Matt Davey believes that the gambling industry is headed in the right direction after the disruptions of the last twelve months. He sat down with Calvinayre.com lead reporter Becky Liggero Fontana to share his thoughts on the industry.
While the industry has experienced some downturn in the face of COVID-19, Davey can see the light at the end of the tunnel for investors:
“From a pure investing perspective with interest rates incredibly low, institutional investors are looking for where they can get growth and so they’re prepared to pay a high multiple for today’s business on the basis that it’s going to grow rapidly. I think with online gaming and sports betting you actually have that environment.”
Davey speaks from a depth of knowledge and wisdom. “We’ve been in the market invest in capital for the last two years or so and we’ve looked at both private deals and public deals,” he said. “When it comes to doing significant deals, typically we’ve looked for partners to execute those deals and organizing both the sale and negotiating a great agreement with the vendor and then negotiating the capital requires two sets of negotiations,” he said.
Davey is the first to admit that always some tension in the room when dealing with deals the size of more than a billion dollars. That hasn’t deterred Davey who continues to search out some of the industry’s emerging companies.
“The market’s rich with companies but we are very much aware of several companies that are just special they’re special from the technology they’ve developed from the management teams they’ve put together, from the cultures they’ve created and you know we’re in the business of doing something really interesting,” Davey said.
Watch the full interview as Davey explains the potential areas of growth for suppliers in the US sports betting market and how suppliers can meet the needs of operators. And if you haven’t yet, watch all of our videos as they go up by subscribing to the CalvinAyre.com YouTube channel.