DraftKings (NASDAQ: DKNG) is rumored to be contemplating the sale of the Vegas Sports activities Data Community (VSiN), the Las Vegas-based sports activities wagering radio community it acquired for $70 million in March 2021.
Brent Musburger selling sports activities betting community VSiN. DraftKings could also be contemplating a sale of the radio community. (Picture: VSiN)
Eilers & Krejcik Gaming (EKG) famous the web sportsbook operator is near divesting VSiN and it might be for pennies on the greenback in a transaction some are evaluating to Penn Leisure (NASDAQ: PENN) dumping Barstool Sports activities final 12 months to founder Dave Portnoy for simply $1.
EKG noticed that the seemingly purchaser is VSiN founder and veteran broadcaster Brent Musburger. VSiN was based in 2017 and far of the community’s radio reveals are recorded at Circa Sportsbook and The D Resort in downtown Las Vegas.
VSiN’s content material consists of 18 hours a day of sports activities wagering protection, and the corporate has a 24/7 stream. It has devoted channels on iHeartRadio and TuneIn, in addition to smaller radio stations throughout the US. The corporate’s choices are additionally obtainable on a number of linear tv platforms and streaming providers, corresponding to fuboTV and Sling TV.
DraftKings VSiN Underscores Tough in Media Offers
Neither DraftKings nor VSiN has publicly commented on the potential of a transaction, however ought to a sale come to gentle, it will underscore the problem gaming corporations have present in wringing satisfactory earnings from the media relationships they had been beforehand so bullish on.
When DraftKings acquired the sports activities betting radio community in 2021, the $70 million it paid was seen as substantial on the time, however a reputable funding as a result of trade observers speculated the intersection of media and sports activities wagering corporations was a mixture that might ultimately drive $30 billion (together with iGaming) in income by 2030.
The realities have confirmed a lot completely different as highlighted by Penn unloading Barstool for a mere $1 and different ill-fated examples of sports activities betting/media firm relationships show “that media corporations don’t essentially make good betting corporations,” in keeping with EKG.
Curiously, Barstool signed a advertising cope with DraftKings earlier this 12 months.
How VSiN May Look as Contemporary Standalone Entity
Ought to DraftKings in the end promote VSiN, there would seemingly be modifications on the radio community, although extra from a advertising relationship. Though the majority of VSiN reveals are broadcast from Las Vegas, on-air expertise largely cite DraftKings odds even supposing the operator doesn’t provide betting within the state.
If it’s offered by DraftKings, VSiN would seemingly discover a new odds supplier — probably Circa — as a result of the community has ample model fairness within the betting neighborhood and Musburger is well-known to bettors and followers alike.
VSiN, The Sports activities Betting Community, is the primary sports activities media firm devoted to offering information, evaluation and proprietary knowledge to the tens of millions of Individuals who wager on sports activities and make sports activities betting a multibillion-dollar trade,” in keeping with the media firm.
Boston-based DraftKings additionally owns Meadowlark Media.
