FansUnite Sells Betting Hero to Co-Owners and GeoComply

Vancouver-based sports and entertainment company FansUnite has announced the sale of its Betting Hero business to the brand’s co-founders and fellow Vancouver firm GeoComply. Betting Hero, founded in 2018 by Jai Maw and Jeremy Jakary, was previously owned and operated by FansUnite’s U.S. subsidiary, FansUS.

The transaction, valued at $51.3 million CAD, will result in Maw and Jakary jointly owning 60% of the company, with GeoComply holding the remaining 40%. FansUnite anticipates a net profit of $27.3 million CAD from the sale, which is expected to close by August 15, 2024.

Strategic Decision

FansUnite CEO Scott Burton explained that the decision followed a comprehensive strategic evaluation of the business, highlighting that the offer reflected favorable market multiples and a substantial premium to the current share price. The board and major investors support the sale, which requires formal approval from shareholders in August.

Betting Hero’s Performance and Growth

Betting Hero operates in over 20 regulated gaming states in the U.S. In March, the company reached a milestone by delivering its 500,000th bettor to the U.S. sports betting market, following its entry into North Carolina’s regulated market.

During FansUnite’s Q1 2024 earnings call, Burton noted that Betting Hero’s contracts with multiple U.S. sportsbooks had driven significant year-over-year growth. The company reported $8.3 million in revenue for Q1 2024, up from $7.3 million in Q1 2023. Betting Hero has expanded beyond its core activation business to include research and digital services, positioning it well for new regulated markets.

GeoComply plans to support Betting Hero’s growth under the leadership of Maw and Jakary. GeoComply CEO Anna Sainsbury expressed confidence in Betting Hero’s vision and commitment to enhancing user experience during the sign-up process.

Recent Sales by FansUnite

FansUnite has a history of divesting parts of its business to focus on high-growth segments. In 2023, it sold the Chameleon iGaming platform to Betr and the Scotland-focused sportsbook and online casino McBookie. These sales allowed FansUnite to concentrate on its core business areas, with a significant focus on scaling Betting Hero.

With the sale of Betting Hero, FansUnite’s subsidiary American Affiliate now retains only one property, props.com, continuing its omni-channel customer acquisition strategy in North America.

The sale of Betting Hero to its co-founders and GeoComply marks a significant strategic move for FansUnite, enabling the company to streamline its operations and focus on its most profitable segments. The transaction is expected to bolster Betting Hero’s growth and expand its presence in the North American sports betting market.

Sources:
https://www.canadiangamingbusiness.com/2024/06/27/fansunite-selling-betting-hero/
https://sbcamericas.com/2024/03/19/betting-hero-500000th-bettor/
https://sbcamericas.com/2023/05/10/betr-chameleon-fansunite/

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