Better Collective, a Copenhagen, Denmark-based developer of digital platforms for betting tips, bookmaker information and iGaming communities listed on Nasdaq Stockholm (BETCO), recently completed the acquisition of two sports betting brands in the United States.
These are Florida-based Vegasinsider.com and Scoresandodds.com, which have been two category leading brands within sports betting information for over 20 years.
Founded over 20 years ago, VegasInsider.com provides picks and insights for the US based sports audience. Through user generated picks, statistics, well as articles, the platform has charmed a loyal audience that buys through subscriptions, as well as daily purchases.
Founded in 1997, ScoresAndOdds.com is an odds comparison and sport statistics website, which has recently went through a design and a technical overhaul to focus on revenue from affiliate marketing towards sports betting.
During the NFL 2018/2019 season, the two websites generated more than 15 million unique visits per month.
The total price of the deal – executed through a US wholly-owned US subsidiary called Better Collective Florida, LLC, – was $20m to be paid in cash.
Following the acquisition, the two sites will be added to Better Collective’s portfolio of more than 2,000+ websites and products, including bettingexpert.com and igaming-apps.com. They will become affiliate websites in those states where online sports betting is available. In particular, Better Collective, as a one of the affiliate marketing companies authorized to enter into revenue share relationships in the State of New Jersey, is adding Vegasinsider.com and Scoresandodds.com to its sites entertaining users in the US as various states are beginning to regulate the sector.
The business model applied by the platforms to date has been based on user subscriptions, sale of picks and brand advertising. Following the close of the deal, this model will be modified towards affiliate marketing within sports betting and lead generation.
The acquiring company will make a technical and commercial reorganization of the platforms in order to ease regulated affiliate marketing and related revenue from the states that permit online sports betting. The two sites are expected to send traffic to licensed operators from the third quarter of 2019 as the overhaul is awaited to be completed during the second semester of 2020.
During this transitional period, revenue and earnings from Vegasinsider.com and Scoresandodds.com will be reduced. For the remainder of 2019, Better Collective expects to realize a revenue modest augment and no profit is expected from the websites.
The two platforms are expected to contribute with revenue and earnings from the second half of 2020.
To operate them, Better Collective has – through a subsidiary – hired 10 people in Florida, working out of Fort Lauderdale. Better Collective Florida will work with the companies’ existing entities in Nashville, Tennessee and New York to facilitate the transition into the new revenue model, to optimize the user experience within subscriptions and pick sales.
Always, in the US, in June 2019, Better Collective signed an agreement with NJ Advance Media LCC to deliver its technology and content for sports betting and casino on www.nj.com.
FinSMEs
26/08/2019