DraftKings has acquired Vegas Sports activities Data Community, Inc. (VSiN) in a bid to construct out its content material capabilities.
No particular monetary particulars have been disclosed, however the deal was price round USD100 million, LSR understands.
DraftKings inventory was up barely in early buying and selling.
What’s VSiN?
The Las Vegas-based VSiN was based in 2017 and produces as much as 18 hours of dwell linear sportsbook betting content material a day.
It’s broadcast by quite a lot of video and audio channels together with Comcast Xfinity, Sling TV, fuboTV, iHeartRadio and TuneIn.
Present VSiN CEO Brian Musburger and his exec group will proceed to handle day-to-day operations and preserve editorial independence.
VSiN workers will even be built-in into the DraftKings workforce. Each firms have workplaces in Vegas.
Including to DK Sportsbook model fairness
DraftKings CEO Jason Robins mentioned VSiN created “genuine and credible content material” for sportsbook bettors at each degree.
Robins added: “Along with its model fairness amongst sportsbook bettors and interesting expertise roster, VSiN additionally has a longtime infrastructure that DraftKings can instantly assist develop, within the hopes of including worth to shoppers who need to turn into extra educated about sportsbook betting.”
DraftKings is ramping up its content material creation
DraftKings has been comparatively forthcoming about its want to ramp up its personal content material creation. Robins hinted at an funding within the space in the course of the firm’s current investor day.
“We predict [media] could possibly be an important route for us,” Robins mentioned. “We’re contemplating whether or not or to not ramp up in our personal content material creation.”
And the VSiN deal won’t be the final strand of that plan. Final month DK raised USD1 billion in new debt to finance potential acquisitions.
Meaning the corporate nonetheless has lots of dry powder for additional M&A.
What subsequent for VSiN?
VSiN CEO Brian Musberger mentioned:
“We created VSiN as a vacation spot for sportsbook bettors to seek out essentially the most credible content material to assist inform their wagering choices. Harnessing the ability and community of the DraftKings model will assist us attain an excellent wider viewers with our distinctive content material.”
The corporate now has some tough waters to navigate, nonetheless. Firstly, the community has a subscriber base that will balk at paying for betting info from a community owned by a bookmaker.
Secondly, key VSiN on-air expertise like Gill Alexander has been loudly important of the Euro-style bookmaking techniques that DraftKings employs. How will that expertise really feel about working straight for a bookmaker?
VSiN additionally has studios at Southpoint and Circa. How will these casinos really feel, having invested in these studios, solely to see them now owned by a rival operator? It’s additionally fascinating to notice that DraftKings doesn’t function presently in Nevada.
Lastly, VSiN has a number of ongoing promoting contracts with DK Sportsbook rivals like BetMGM, BetRivers and PointsBet. What occurs to these contracts if a BetMGM advert learn comes from a DraftKings-branded studio?