Peter Schoenke of Rotowire, while breaking the news, said, "The United States is entering a whole new world of sports fandom and combining forces with Gambling.com Group will accelerate RotoWire's growth. Gambling.com Group's resources and experience will help RotoWire rapidly advance its sports betting offerings to take full advantage of this new era."
Schoenke is the President of RotoWire and past-Chairman of the Fantasy Sports & Gaming Association.
An Aggregated Price of $27.5 Million
The deal will be finalized in January 2022 for $27.5 million. At closing, $20 million will be paid by the buyer, of which $15 million in cash and $5 million in unregistered ordinary shares.
The remaining $7.5 million will be deferred over the following two years to create immediate accretion for its next set of annual financials. Gambling.com will pay $2.5 million on the first anniversary from closing the deal and $5.0 million on the second, and these prices are independent of the financial performance of RotoWire.
The aggregate purchase price, according to reports, is four times Roto Sports' revenue in 2021.
A Dominant Player in US Fantasy Sports
Having over 17 million unique web visitors in the past year and an existing audience of over 100,000 subscribers, RotoWire is one of the most popular providers of expert fantasy sports news and advice.
Charles Gillespie, Chief Executive Officer of Gambling.com Group, recognized the deep-rooted presence that RotoWire has been able to establish in the American sports scene.
"Over the past 25 years, Peter and the RotoWire team have produced some of the best fantasy sports content in America and have in turn embedded their business into the heart of the American sports experience.”
"Commercially, the RotoWire business has three different revenue streams, each generating over $1 million per year, which give it significant reach into sports media organizations as well as with advertisers and individual sports fans. These deep and long-lasting customer relationships are an ideal platform from which to capitalize on the new era of American sports – the betting and gaming era."
Gambling.com plans to use the brand's digital assets to drive substantial, incremental affiliate revenue in the expanding US betting market. The Group will be leveraging RotoWire's market reach as well as its content library, talented workforce, media partnerships, and trust with US sports fans to further accelerate its growth within the country.
Gillespie added that work will commence on expanding the sports betting content and tools across RotoWire's digital assets straight after closing. The Group is confident that these assets, combined with their digital expertise and technology platform, will set the foundation for a leadership position in US sports betting, which will drive near-term, and especially long-term, value creation for all stakeholders.
Andrew is interested in gambling developments in Canada and the USA. He writes news updates and contributes to casino reviews for the site. A keen ice hockey player, Andrew likes to spend time on the rink playing for his local team.