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Editor ’ s Letter
A leisurely liquid launch
With more than 500 SPAC floats on US exchanges since the start of last year , the last six months has seen a raft of gamingrelated vehicles formed to follow the hundreds of American tech firms down this new route to securing the liquidity accessible to high-growth assets via a listing .
The investor enthusiasm for the market openings and growth potential in US sports betting and igaming could not be in starker contrast to the climate enveloping these sectors in Europe at present .
While European exchanges are looking to ease regulations to become more SPAC-friendly , the higher valuations currently being achieved for gaming transactions in the US means the centre of gravity is unlikely to shift from there any time soon .
That said , the inevitable shakeout from the US arms race will eventually see attention refocus back on Europe and elsewhere . Whether the SPAC will be embraced on European exchanges as a vehicle to unlock liquidity as it is in the US – the high cost of around 20 % of the equity going to the deal promoter has deterred some more mature European tech companies from going this route – remains to be seen .
This report by Scott Longley explores the emergence and drivers of the recent wave of SPACs . It takes in stakeholder perspectives from the SPACs themselves to their advisors and many more besides to provide a concise overview and analysis of this phenomenon as it ripples through our sector . We hope you find it interesting and useful . As we continue to evolve and expand the content we produce at Clarion Gaming , we would love to receive your feedback on this report or any other content we produce under the iGB and ICE 365 brands . Please don ’ t hesitate to email me at stephen . carter @ clariongaming . com with any comments you may have .
“ The higher valuations currently being achieved for gaming transactions in the US means the centre of gravity is unlikely to shift from there any time soon ”
Stephen Carter Editorial director , iGB