Stram Entertainment Limited Acquires FansUnite's BetPrep Affiliate Brand
Vancouver, British Columbia--(Newsfile Corp. - February 9, 2023) - FansUnite Entertainment Inc. (TSX: FANS) (OTCQX: FUNFF) ("FansUnite" or the "Company") is pleased to announce a partnership that will result in Stram Entertainment Limited d.b.a. BestOdds ("BestOdds") acquiring one of the Company's affiliate brands, BetPrep.
BetPrep allows bettors to test their wagering approach by comparing it to data and analysis on the most historically profitable betting conditions for any sport, league, or player prop. As part of the agreement, 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 September 1, 2023.
Stram Entertainment Limited operates www.bestodds.com amongst other domains. BestOdds is a leading sports betting and iGaming affiliate brand, primarily focused on the North American market.
Overall, this transaction will enable FansUnite to not only reduce its operating expenses immediately without impacting growth, but also unlock new revenue synergies.
"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," said Scott Burton, CEO of FansUnite. "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."
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."
This partnership was secured as part of FansUnite's operational optimization strategy to accelerate its revenue growth and prioritize profitability. The Company 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.
About FansUnite Entertainment Inc.
FansUnite is a global sports and entertainment company, focusing on technology related to regulated and lawful online gaming. FansUnite's one-of-a-kind iGaming platform Chameleon offers operators a full suite of gaming solutions with a sports and esports focus geared for the next generation of online bettors and casino players. Along with providing B2B technology solutions, FansUnite operates multiple B2C brands, such as Scottish sportsbook McBookie. FansUnite is the parent company of North American-focused AmAff, which operates leading affiliate brands such as Betting Hero and Props.com.
For further information, please contact:
Prit Singh, Investor Relations at FansUnite
Scott Burton, Chief Executive Officer of FansUnite
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "believes," "belief," "expects," "intends," "anticipates," "potential," "should," "may," "will," "plans," "continue" or similar expressions to be uncertain and forward-looking. Forward-looking statements may include, without limitation, statements relating to: payment of a 30% revenue share; impact of the transaction on the Company's operating expenses and revenue; and performance of BetPrep. Forward-looking statements are based on the Company's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of FansUnite to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Additional information regarding the risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's Annual Information Form dated June 15, 2021 filed on its issuer profile on SEDAR at www.sedar.com and risks related to global pandemics, including the novel coronavirus (COVID-19) global health pandemic, and the spread of other viruses or pathogens and influence of macroeconomic developments. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The forward-looking statements in this news release are made as of the date of this release. FansUnite disclaims and does not undertake to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
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