Posted on: July 3, 2024, 03:33h.
Last updated on: July 3, 2024, 03:34h.
DraftKings (NASDAQ: DKNG) is rumored to be considering the sale of the Vegas Sports Information Network (VSiN), the Las Vegas-based sports wagering radio network it acquired for $70 million in March 2021.
Eilers & Krejcik Gaming (EKG) noted the online sportsbook operator is close to divesting VSiN and it could be for pennies on the dollar in a transaction some are comparing to Penn Entertainment (NASDAQ: PENN) dumping Barstool Sports last year to founder Dave Portnoy for just $1.
EKG observed that the likely buyer is VSiN founder and veteran broadcaster Brent Musburger. VSiN was founded in 2017 and much of the network’s radio shows are recorded at Circa Sportsbook and The D Hotel in downtown Las Vegas.
VSiN’s content includes 18 hours a day of sports wagering coverage, and the company has a 24/7 stream. It has dedicated channels on iHeartRadio and TuneIn, as well as smaller radio stations across the US. The company’s offerings are also available on several linear television platforms and streaming services, such as fuboTV and Sling TV.
DraftKings VSiN Underscores Difficult in Media Deals
Neither DraftKings nor VSiN has publicly commented on the possibility of a transaction, but should a sale come to light, it would underscore the difficulty gaming companies have found in wringing adequate profits from the media relationships they were previously so bullish on.
When DraftKings acquired the sports betting radio network in 2021, the $70 million it paid was viewed as substantial at the time, but a credible investment because industry observers speculated the intersection of media and sports wagering companies was a combination that would eventually drive $30 billion (including iGaming) in revenue by 2030.
The realities have proven much different as highlighted by Penn unloading Barstool for a mere $1 and other ill-fated examples of sports betting/media company relationships prove “that media companies don’t necessarily make good betting companies,” according to EKG.
Interestingly, Barstool signed a marketing deal with DraftKings earlier this year.
How VSiN Could Look as Fresh Standalone Entity
Should DraftKings ultimately sell VSiN, there would likely be changes at the radio network, though more from a marketing relationship. Although the bulk of VSiN shows are broadcast from Las Vegas, on-air talent mostly cite DraftKings odds despite the fact that the operator doesn’t offer betting in the state.
If it’s sold by DraftKings, VSiN would likely find a new odds provider — potentially Circa — because the network has ample brand equity in the betting community and Musburger is well-known to bettors and fans alike.
VSiN, The Sports Betting Network, is the first sports media company dedicated to providing news, analysis and proprietary data to the millions of Americans who wager on sports and make sports betting a multibillion-dollar industry,” according to the media company.
Boston-based DraftKings also owns Meadowlark Media.
