Sports betting affiliate Better Collective has, through its wholly-owned US subsidiary, acquired the assets of Florida based Vegasinsider.com and Scoresandodds.com for a total cash transaction of $20m.
In a statement, the firm said that the brands have been market leading within sports betting information for more than 20 years and are expected to become market leading affiliate websites in those states where online sports betting is available. During the National Football League (NFL) 2018/2019 season, the two websites generated more than 15 million unique visits per month.
Outlining the rationale behind the deal, Better Collective said it will add the two websites to its portfolio to educate and entertain users in the US as various states are beginning to regulate online sports betting. The business model that has been applied by the websites so far is based on user subscriptions, sale of picks (tips) and brand advertising. Following the acquisition, the business model will be changed towards affiliate marketing within sports betting (lead generation).
The change will involve a technical and commercial overhaul of the websites in order to facilitate regulated affiliate marketing and related revenue from the states that allow online sports betting. The two websites are expected to send traffic to licensed operators from Q3 2019, and the technical/commercial overhaul is expected to be complete during H2 2020.
The company has cautioned that during this transitional period, revenue and earnings from the two websites will be temporarily reduced. It added that while the group will realize a slight increase in revenue for the remainder of 2019, no profit is expected from the websites in that period. They are, however, expected to contribute with substantial revenue and earnings from H2 2020.
In order to operate the newly acquired websites, Better Collective has, through its US subsidiary, recruited 10 employees in Florida, working out of Fort Lauderdale. Better Collective Florida will work closely with the group’s existing entities in Nashville, Tennessee and New York.
Group CEO and Founder Jesper Søgaard commented: “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. These two web portals 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.”