FansUnite has sanctioned Stram Entertainment’s acquisition of its affiliate brand BetPrep in an effort to ‘reduce operating expenses and unlock new revenue synergies’.
BetPrep allows bettors to test their wagering approach by comparing against data and analysis on the most historically profitable betting conditions for any sport, league, or player prop.
As part of the agreement, Stram – doing business as sports betting and igaming affiliate brand BestOdds – will pay FansUnite a 30% revenue share for 36 months subject to a minimum monthly guarantee, after the agreed upon ramp-up period ends on Sept. 1.
The Vancouver-based betting and gaming firm is adamant this partnership gives the brand its best chance to flourish while also forming part of FansUnite’s operational optimization strategy to accelerate revenue growth and prioritize profitability.
This comes despite news earlier this week that its revenue was up 364% YoY in FY2022.
Scott Burton, CEO of FansUnite, said: “As we continue to focus our efforts on the revenue generating aspects of our business, this deal was an opportunity to continue to benefit from BetPrep’s revenue upside without incurring the ongoing operational costs.
“BestOdds is well positioned to make BetPrep a successful product within their existing properties, and we anticipate the BetPrep brand will continue to flourish under their leadership. I’m also excited about the door this partnership opens for FansUnite and BestOdds to continue to do business together.”
FansUnite previously announced strategic plans to streamline its overall business, focusing on its Chameleon B2B technology platform and other business units that generate significant revenue and high gross margins.
Will Armitage, Co-Founder of BestOdds, added: “We are excited to be acquiring the BetPrep assets and will work hard to scale them within our properties. We look forward to collaborating with the FansUnite team over the coming years and reaping rewards together.”