Latest Oddschecker News
Jul 27, 2021
We’ve seen a wave of deals lately for companies including The Action Network and Oddschecker. Insiders say more sports startups and publishers will start moving to affiliate businesses. See more stories on Businesshala’s business page. Sports-betting affiliates like The Action Network are having a moment as the M&A ripples through the American gambling sector. Flutter, the Irish gambling giant that owns FanDuel, sold sports-betting affiliate Oddschecker to US investment firm Bruin Capital for $218 million. And just last week, Gambling.com Group, an affiliate that publishes online gambling comparison sites, made its initial public offering in the US. The deals are part of a slew of M&A activity conducted by gambling operators and suppliers looking to reach a wider audience. Allies are a key piece of the puzzle, a banker who advises sports media and gambling companies told Businesshala. Sports-gambling affiliates operate sites that generate revenue primarily by linking to sportsbooks in exchange for fees when players sign up or deposit money into a betting account. Some affiliates publish reviews and promotions of various sportsbooks. Others post daily odds and analysis to help gamblers choose their bets. They usually rely on a mix of content, data and SEO capabilities to get the gambler in front of them when they are looking to place a bet. While some sports-media publishers also generate affiliate revenue, the companies that are colloquially referred to as “affiliates” differ in that their content primarily serves to drive traffic to gambling platforms. Allies were one of the first industries to capitalize on the rise of legal sports gambling in America. But until recently they were largely overshadowed by sports-media properties such as Barstool Sports and Bleacher Report as customer-acquisition vehicles. Not so in mature sports-betting markets like Europe. Banker estimated that European gambling operators spend about 40% of their annual marketing budget with affiliates. a Previous study of gambling companies in the UK by Regulus Partners found that gambling operators in the region spent about 20% of their marketing dollars on affiliate marketing in 2017. In the US, the attitude of affiliates is beginning to change. Operators need every tool at their disposal to sign up customers while keeping costs down. For every dollar in revenue a new online sportsbook generates, about 46% goes toward acquiring and retaining customers, research firm Eilers & Crazy Gaming estimates. M&A boom could inspire more affiliate businesses More companies are popping up with an affiliate-revenue model. Digital-media brands like Barstool Sports have an eye on affiliate revenue streams. The banker source said more publishers may try this model as they look for ways to monetize their audiences apart from advertising and subscriptions. “I think we’ll see more and more businesses of this type do what The Action Network has done,” the banker said. “Media companies definitely want to turn on the affiliate switch.” Startups like American Affiliate, which acquired wagers.com and props.com, are also moving beyond shattering a handful of major affiliate groups and smaller sites. “There is a lack of quality gambling media assets that can attract, engage and convert traffic,” said Chris Grove, partner and gambling analyst at Eilers & Crazy Gaming, who also helped launch the American affiliation and previously Catena Media. working in. Potential buyers of affiliates include: Super affiliates, or affiliate groups such as Better Collective, Catena Media, XLMedia and RockTech, which are expanding their reach locally and nationally. Charles Gillespie, CEO of Gambling.com Group, also told Businesshala that the newly public company is considering a possible takeover. Data and technology suppliers such as SportRadar and Genius Sports that seek to offer a full suite of services to gambling operators Companies that may use affiliates with other sports ventures, such as investment firm Bruin Capital Companies known for affiliate marketing in other industries that may expand into sports gambling, such as Raid Ventures However, gambling operators will probably stay out of the race. Affiliates earn money by referring sportsbooks to users. This makes them well suited to working with a range of operators, as people visit affiliates to compare odds or promotions across multiple types of sportsbooks. They may not trust an affiliate that owns and exclusively promotes a single sportsbook. “The example of making and selling Oddschecker I think underscores the value of freedom in this industry,” said Harry von Behr, managing director of affiliate Spotlight Sports Group. Stay on top - Get the daily news in your inbox Subscribe
1 Team Member
Oddschecker has 1 team member, including current Managing Director, Julian Leach.