DraftKings Acquires VSiN As It Expands Into Content Space

In a bid to expand its content capabilities, daily fantasy and sportsbook icon DraftKings has acquired Vegas Sports Information Network (VSiN). The deal is said to be worth as much as $100 million.

VSiN produces live, linear sports betting content most hours of the day through mediums such as Sling TV, iHeartRadio, and Comcast Xfinity.

DraftKings plans to integrate VSiN’s workforce into its 2,500+ employee workforce, but VSiN will maintain editorial independence.  

What does DraftKings want out of the VSiN purchase?

DraftKings has made no secret that it wants to expand into the sports gambling content space, and it feels that VSiN is the right platform to help it in its mission.

The mashup of sports betting operators and media has become a trend in the US market. From FOX Sports and Flutter to Penn National and Barstool, operators are taking marketing in-house.  

As per DraftKings co-founder, CEO, and Chairman of the Board, Jason Robins, in an announcement:

“VSiN creates authentic and credible content that resonates with sports bettors at every level, whether they’re experienced or new to sports betting.”

“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.”

The announcement said that the acquisition enables DraftKings to build out its content capabilities and augment VSiN’s ability to broaden its audience alongside the expansion of legal sports betting in the US.

Analysts predict that the acquisition positions DraftKings for greater earning power over the longer term. Jeffries analyst David Katz said that the acquisition should expand the company’s customer acquisition channel and, in the long run, should help achieve greater CAC efficiency. According to Katz, DraftKings is very well positioned in the US sports betting industry, “with an established DFS presence, strong brand awareness, and fast-mover advantages in many states.”

Who is VSiN?

The subscription-service Vegas Sports Information was founded in 2017 by the Musburger family after Hall of Famer Brent Musberger, CEO, left ESPN as an announcer. 

Calling itself the Sports Betting Network, VSiN is the first multi-platform broadcasting company dedicated to delivering news, analysis, and proprietary data to millions of Americans who participate in the sports betting industry. The company has headquarters in Las Vegas and broadcasts from Detroit, Atlantic City, Chicago, and Denver. It produces and distributes around 18 hours of linear sports betting content each day and streams on VSiN.com and the VSiN app 24/7.

Musburger told VSiN’s Follow the Money that while the company has done a good job creating content, there’s always room for growth by having more people learn about the content it produces. DraftKings, he said, had excellent marketing skills for this job.

The deal also provides DraftKings with more control over its marketing spend, which the company aims to reduce over time. We recently discussed the future of DraftKings’ marketing spend.

How Far will the Deal Take VSiN?

VSiN should see its brand name grow significantly through the acquisition deal.

DraftKings has a multi-channel portfolio of sports betting and gaming technologies in over 17 countries. In the US alone, DraftKings has its sportsbook live with mobile and/or retail betting operations in Colorado, Illinois, Indiana, Iowa, Michigan, Mississippi, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Tennessee, Virginia, and West Virginia.