DraftKings has acquired Vegas Sports Information Network, Inc. (VSiN) in a bid to build out its content capabilities.
No specific financial details were disclosed, but the deal was worth around $100 million, LSR understands.
DraftKings stock was up slightly in early trading.
What is VSiN?
The Las Vegas-based VSiN was founded in 2017 and produces up to 18 hours of live linear sports betting content a day.
It is broadcast through a variety of video and audio channels including Comcast Xfinity, Sling TV, fuboTV, iHeartRadio and TuneIn.
Current VSiN CEO Brian Musburger and his exec team will continue to manage day-to-day operations and maintain editorial independence.
VSiN employees will also be integrated into the DraftKings workforce. Both companies have offices in Vegas.
Adding to DK Sportsbook brand equity
DraftKings CEO Jason Robins said VSiN created “authentic and credible content” for sports bettors at every level.
Robins added: “In addition to its brand equity among sports bettors and engaging talent roster, VSiN also has an established infrastructure that DraftKings can immediately help expand, in the hopes of adding value to consumers who are looking to become more knowledgeable about sports betting.”
DraftKings is ramping up its content creation
DraftKings has been relatively forthcoming about its desire to ramp up its own content creation. Robins hinted at an investment in the area during the company’s recent investor day.
“We think [media] could be a great route for us,” Robins said. “We’re considering whether or not to ramp up in our own content creation.”
And the VSiN deal might not be the last strand of that plan. Last month DK raised $1 billion in new debt to finance potential acquisitions.
That means the company still has a lot of dry powder for further M&A.
What next for VSiN?
VSiN CEO Brian Musberger said:
“We created VSiN as a destination for sports bettors to find the most credible content to help inform their wagering decisions. Harnessing the power and network of the DraftKings brand will help us reach an even wider audience with our unique content.”
The company now has some tricky waters to navigate, however. Firstly, the network has a subscriber base that may balk at paying for betting information from a network owned by a bookmaker.
Secondly, key VSiN on-air talent like Gill Alexander has been loudly critical of the Euro-style bookmaking tactics that DraftKings employs. How will that talent feel about working directly for a bookmaker?
VSiN also has studios at Southpoint and Circa. How will those casinos feel, having invested in those studios, only to see them now owned by a rival operator? It’s also interesting to note that DraftKings doesn’t operate currently in Nevada.
Finally, VSiN has multiple ongoing advertising contracts with DK Sportsbook competitors like BetMGM, BetRivers and PointsBet. What happens to those contracts if a BetMGM ad read comes from a DraftKings-branded studio?