Sportsbooks partnering with content creators? You can bet on it.
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, according to Legal Sports Report.
Who are VSiN?
Founded in 2017, VSiN is an American sports betting radio network and streaming television channel based in Las Vegas.
VSiN programming is carried via its website, as well as sharing its programming via regional sports networks and radio stations.
What's in it for DraftKings?
DraftKings has been relatively forthcoming about its desire to ramp up its own content creation. DraftKings CEO, Jason Robins, said VSiN created “authentic and credible content” for sports bettors at every level.
“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,” Robins added.
Becoming Media Companies
Previously, online sportsbooks have been spent big to acquire critical early-stage US market share. Advertising spend by sports betting brands increased by 82% YoY in 2020 in the hope of maximising customer acquisition by maximising reach.
Rockwater suggest this approach must be reevaluated in 2021, as the aggressive “top-of-funnel” marketing approach isn’t sustainable. Ultimately, gambling operators must start operating like media companies (by activating content in-app). Not only to significantly reduce user acquisition costs, but also dramatically improve lifetime values.
We've seen this play out across the pond with Penn's acquisition of Barstool Sports.
In the UK, the strategy that has been around for some time. For years Sky Bet has integrated marketing campaigns into Sky Sports News with odds and promotions often appearing alongside content.
Further Reading - TheScore, valued at $1 billion, is playing underdog in U.S. sports gambling and public markets, reports CNBC.
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