Better Collective ramps up US focus with RotoGrinders acquisition
Copenhagen-based affiliate establishes Nashville headquarters stateside after buying a 60% stake in leading DFS network
Better Collective has entered the US sports betting market by acquiring a 60% stake in daily fantasy sports (DFS) network RotoGrinders for $21m.
RotoGrinders is headquartered in Nashville, Tennessee, and operates leading US sports brands including rotogrinders.com, pocketfives.com and sportshandle.com.
Better Collective will tie up a deal for the remaining 40% between 2022 and 2024, with the valuation still to be determined by the future growth and profitability of the business.
RotoGrinders was founded in 2009 and generated more than $8m in US revenue during 2018. Better Collective now expects to generate more than $10m in US revenue in 2019.
The 40% of RotoGrinders shares not owned by Better Collective are held by the company’s three founders and certain key employees.
The three founders, including CEO Calvin Spears, will continue managing the daily business of RotoGrinders, which employs approximately 50 staff in the states.
Better Collective CEO Jesper Søgaard said: “Since PASPA was repealed by the US Supreme Court last year, we have carefully evaluated how best to establish Better Collective in the growing US market.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,” he added.
RotoGrinders will be 100% consolidated into the Better Collective accounts from 1 June 2019.
I'm on record saying it would be 10 years post-PASPA before TN had sports betting. There's a real chance it's only 2-3 years instead. Add Online Registration to HB 1 and this is a great bill for everyone. https://t.co/Ws4dIcYkdT
— Cal Spears (@CalSpears) March 8, 2019
Co-founder Spears said: “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,” he added.
Better Collective has opened a New York office managed by VP of business development and sales, Marc Pedersen, but RotoGrinders’ Nashville base will serve as Better Collective’s US headquarters.