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DraftKings Snaps Up Vegas Sports Information Network

By Rhian Hunt - Updated Mar 31, 2021 at 7:55AM

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One major analyst thinks acquiring the broadcasting network will boost DraftKings' profits long-term.

In today's sports betting sector news, possible market leader DraftKings (DKNG -0.36%) announced its acquisition of Vegas Sports Information Network, known as VSiN, for an undisclosed amount. The buyout gives DraftKings its own broadcasting network, along with related content, focused on the sports and sports gambling worlds.

VSiN produces a range of different programs about sports betting news and analysis. The content is intended for ordinary sports gamblers rather than being an internal industry news source. The services included are several internet streaming TV stations (at least one of which operates 24 hours a day, seven days a week), several radio stations operating both on air and digitally, and a lineup of podcasts.

A man using a tablet to watch a digital sportscast, with an image of a football on the screen.

Image source: Getty Images.

"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," DraftKings CEO Jason Robins said in a statement. DraftKings will keep all of VSiN's executives and personnel on the job. Integrating VSiN's employees into its own workforce will likely be made much easier by the fact the head offices of both companies are located in Las Vegas.

One major analyst, Jefferies Group, weighed in on the acquisition. Analyst David Katz said in a research note the merger won't improve DraftKings' value short-term, but the "acquisition of VSiN should expand the company's customer acquisition channel and in the long-run should help achieve greater CAC [customer acquisition cost] efficiency."

Katz also points out DraftKings is "very well positioned in US sports betting currently." Investment manager Cathie Wood appears to agree, recently increasing her holdings of the stock to $126 million with several major purchases. 

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