In a deal illustrative of the trend in gaming toward an omni-channel approach, land-based casino operator Affinity Gaming, based in Las Vegas, has merged with the publisher of the Daily Racing Form, Sports Information Group (SIG). The pact was announced by Affinity’s parent company, private equity firm Z Capital Partners.
Affinity is best known as the operator of three casinos in the Nevada border town of Primm, one of which (Buffalo Bill’s) remains closed due to COVID-related diminution of business. It also owns two casinos in Missouri and one in Iowa, along with the off-Strip Silver Sevens in Las Vegas and Rail City Casino in Sparks, Nevada.
The price of the SIG acquisition was not disclosed. All parties expect the transaction to close in a matter of weeks. When consummated, it will give Affinity access to multiple online platforms for sports betting. SIG describes itself as “a global, multi-media, information company dedicated to providing premium data-driven content and in-depth digital coverage to horse racing enthusiasts.” But it is best known for the 127-year-old Daily Racing Form, first as an ink-and-paper staple of horse players and now as a website.
The stated goal of the deal is to provide Affinity Interactive with “a world-class digital offering with significant growth opportunities” via SIG platforms, such as DRF Bets and DRF Sports. At present, Affinity is limited to operating in Nevada, Missouri, and Iowa, none of which provides internet casino gaming, although both Nevada and Iowa permit online sports betting. A formal statement promised “an expanded suite of casino and online gaming offerings, including social gaming, mobile gaming, igaming, and sports betting” as a result of the merger. Affinity will also be branching out into daily fantasy sports.
Both Affinity CEO Mary Beth Higgins and SIG CEO Itay Fisher will retain their jobs.
This is Affinity’s first major acquisition since purchasing Gaming & Hospitality Acquisition Corp. last January with a view toward using it as an investment vehicle to expand Affinity’s portfolio.
