Stockholm-listed Better Collective has completed the acquisition of US sports betting affiliates VegasInsider.com and ScoresAndOdds.com for US$20m.
Better Collective will add the two websites to its portfolio of iGaming affiliate sites in the US to benefit from the ongoing regulation of online sports betting.
The websites currently earn revenue from user subscriptions, sale of picks (tips) and advertising, but will switch to focus on affiliate marketing lead generation in sports betting.
“With the acquisition of the two mega-brands, VegasInsider.com and ScoresAndOdds.com, Better Collective is paving the way to expand the position as the market leading sports betting information company to include the US,” said Better Collective CEO and co-founder Jesper Søgaard. “These two webportals have the potential to become the largest revenue generating assets within Better Collective within the coming years.
“Furthermore, they have significant synergy effects with our other US-facing assets, not least with our recent acquisition of the Rotogrinders Network. I am confident that we, by way of these acquisitions, have put Better Collective in pole position for a market leading position in the US states where online sports betting will be regulated and available.”
Better Collective will overhaul the VegasInsider.com and ScoresAndOdds.com sites in order to facilitate regulated affiliate marketing and related revenue from the states that allow online sports betting.
The two sites are expected to send traffic to licensed operators from the third quarter of this year, with the overhaul expected to be completed during the second half of 2020.
The company said that during the transitional period until the overhaul is complete, revenue and earnings from the sites will be temporarily reduced. For the remainder of 2019, Better Collective expects to realise a slight increase in revenue, although no profit is expected to be generated from the sites during the period.
Better Collective has recruited 10 new employees in Florida to operate the newly acquired sites, who will work closely with Better Collective’s teams in Nashville, Tennessee and New York.
The transaction has been conducted in continuous dialogue with the New Jersey Division of Gaming Enforcement, with Better Collective expected to be able to operate the sites under its existing license in New Jersey.
Shares in Better Collective A/S (STO:BETCO) gained 4.54 per cent to SEK87.50 per share in Stockholm Tuesday morning following the announcement.