Better Collective to acquire iGaming company RotoGrinders for $21mn
Denmark-based digital gambling platform developer, Better Collective, announced today the continuation of its planned expansion into the US iGambling market. The company has confirmed the successful purchase of 60% of the shares in RotoGrinders for a cash consideration of US$21mn.
The company also announced plans to purchase the remaining 40% between 2022 and 2024, at a price determined by future growth and profitability of RotoGrinders and Better Collective’s other business in the United States.
Founded in 2009 and headquartered in Nashville, Tennessee, RotoGrinders owns a network of platforms for sports betting and daily fantasy sports (DFS), including rotogrinders.com, pocketfives.com, sportshandle.com, usbets.com and pennbets.com. The company has historically focused on DFS. However, with the changing regulation in the US market since 2018, the business focus has increasingly been directed towards affiliation to sports betting and other online gambling.
Calvin Spears, CEO and co-founder of RotoGrinders, commented: “Joining the Better Collective group will help us fully realize the potential we've created with the RotoGrinders network. Regulated online sports betting will create an enormous affiliate marketing opportunity in the US. We feel Better Collective is the perfect partner for us as this opportunity unfolds. The experience, resources, and technology they've built up over the past 15 years in European sports betting will prove incredibly valuable here. Our combined goal is to be the largest US sports betting affiliate and we're in a great position to make it happen.”
Better Collective already possesses a number of online sports betting revenue streams active in the US. The acquisition of RotoGrinders will boost its presence in the market, and is expected to increase revenue by $10mn annually.
The transference of legislative authority over sports betting from the federal to state level in May 2018 has, over the past year, seen several states move to repeal the existing ban. According to Better Collective, the US sports betting market could surpass $6bn in five years.
Jesper Søgaard, CEO of Better Collective, said: “Since PASPA was repealed by the US Supreme Court last year, we have carefully evaluated how best to establish Better Collective in the growing US market. We have assessed various acquisition opportunities, searching for access to strong products and dedicated people with insight into this market. We strongly believe that we found exactly that in RotoGrinders, where we see a strong and dedicated management team and talented employees. Management and key employees remain shareholders in RotoGrinders for the coming years, in which the US market is expected to unfold, whereby management and key employees on the one side and Better Collective on the other to a large extent share the potential risks and upside. We are truly excited about this opportunity.”
Following the sale, RotoGrinders will remain headquartered in Nashville and be the center for operating US focused products and business. Better Collective USA, Inc. has opened an office in New York, which will coordinate all of Better Collective’s activities in the US, including sales and marketing activities.