Better Collective has acquired the assets of Florida-based sports betting websites Vegas Insider and Scores and Odds in a $20m cash deal.
“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,” Jesper Søgaard, chief executive and co-founder of Better Collective said.
Each site is an established brand, with Vegas Insider founded more than 20 years ago, providing statistics, user-generated picks and content to its audience. Scores and Odds, on the other hand, was founded in 1997 and offers odds comparison and sports statistics.
Currently the two websites, which attracted more than 15m unique visits per month during the National Football League’s (NFL) 2018/2019 season, operate on a business model based on the sale of betting tips and brand advertising. However, under Better Collective, the system will move toward an affiliate marketing model.
The change in business model will involve “a technical and commercial overhaul” of the VegasInsider.com and ScoresAndOdds.com websites in order to facilitate regulated affiliate marketing.
The two websites are expected to send traffic to licensed operators from Q3 2019, and the overhaul is expected to be complete during the second half of 2020.
During the transitional period of the websites, Better Collective said it expects revenue and earnings from the websites to be temporarily reduced. For the remainder of 2019, the Better Collective group expects a slight increase in revenue but no profit is expected from the websites in that period. The websites are expected to contribute with substantial revenue and earnings from H2 2020.
The deal follows Better Collective’s acquisition of the Rotogrinder Network for $21 million in May.
“These two web portals have the potential to become the largest revenue generating assets within Better Collective within the coming years,” Søgaard said. “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.”