Boston-based bookmaker, DraftKings, purchased the Vegas Sports Information Network (VSiN) for $70 million from the Musburger family back in 2021, and it is rumored the company may be looking to sell it back to the original owners.
Media Mania
According to Eilers & Krejcik Gaming, DraftKings is shopping VSiN, the gaming radio network it purchased for $70 million in 2021 from the Musburger family whose patriarch, Brent Musburger, was a longtime sports broadcaster on CBS. At that time, mobile sportsbooks were plunging headfirst into agreements with radio and TV stations to use as mass media outlets exclusively promoting their brand.
A study by Macquarie Research estimated a compound annual growth rate of 33% attributed to business generated by media outlets for online sportsbooks and iGaming companies. The research paper pointed out that U.S. gaming enterprises were simply following a blueprint engineered by gambling sites in the U.K.
“These deals have expanded well beyond traditional advertisements to include naming rights, click-through economics, and equity stakes,” according to Macquarie. “Ultimately, we believe the ‘grand slam’ opportunity is to replicate the success of Sky Bet in the UK as a model for media content integrations with betting apps.”
After reaching the deal to purchase VSiN, DraftKings’ co-founder, CEO and Chairman of the Board, Jason Robins, said, “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 Tune Has Changed
Per its website, “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.”
VSiN’s 18-hour daily radio coverage of all things betting-related originates from the studios at Circa Sportsbook and The D Hotel in downtown Las Vegas. All the programming naturally uses DraftKings’ odds and the sportsbook is front and center throughout the broadcasts.
Not a Great Deal
Although DraftKings does not operate in Nevada, its radio programming is not limited to stations in the Silver State. Dedicated channels on iHeartRadio and TuneIn along with smaller stations across the United States give the company blanket exposure but it hasn’t necessarily translated into all that increased business that the studies concluded it would.
The precise reason why DraftKings is interested in selling the station is unclearm but it’s apparent the juice has not been worth the squeeze for the mobile sports betting behemoth.
Many believe Musburger would be the likely buyer but how much of that $70 million he would be willing to give back is anyone’s guess. If the deal is consummated, there will likely be immediate changes in terms of partnering with a different sportsbook to provide odds. Circa would be a reasonable candidate considering several shows are recorded from its studios and the company already operates a retail sportsbook and has an online presence in several states.
