Spotlight Sports Boosts Fantasy Sports Footprint in Alarm Sports Network Acquisition
Posted on: September 1, 2021, 10:55h.
Last updated on: September 1, 2021, 11:44h.
Spotlight Sports Group said today it’s acquiring FA Media LLC, the parent company of Alarm Sports Network, in an all-cash deal aimed at bolstering the buyer’s presence in the fantasy sports space.
Owned by Exponent Private Equity, Spotlight Sports is a provider of content, media, and technology, with an emphasis on sports wagering. Those businesses mesh with what Alarm Sports brings to the table.
Alarm Sports Network provides white-label proprietary technology solutions and free-to-play contests for blue-chip media and sports content providers. It also develops engaging content for its popular consumer sports platforms: Fantasy Alarm, DFS Alarm, and Wager Alarm,” according to a statement issued by the companies.
London-based Spotlight sees the Alarm deal increasing its exposure in the increasingly lucrative North American sports wagering market, where it already has some exposure via its direct-to-consumer platform, Pickwise.
The acquisition comes amid soaring estimates for regulated sports wagering in North America. The US is already the fastest-growing sports betting market in the world, and Canada, which recently approved single-game betting, could eventually be a $2 billion market.
Spotlight/Alarm Deals Extends Betting, Fantasy Consolidation
The iGaming and sports betting industries are teeming with mergers and acquisitions rumors and confirmed deals. Given the synergies between fantasy sports and wagering, some operators see conversion opportunities and are making deals to that effect.
For example, Bally’s acquired daily fantasy sports (DFS) company Monkey Knife Fight (MKF) earlier this year. That deal was announced just four months after MKF bought rival FantasyDraft. In January, Caesars Entertainment took a minority stake in SuperDraft, Inc. Transactions such as those could serve as validation of Spotlight’s move on Alarm.
Converting fantasy players to sports bettors is a playbook penned by FanDuel and DraftKings, two of the largest US online sportsbook operators.
Alarm Sports Network already sports impressive gaming credentials. It developed technology deployed to increase fan awareness and revenue for the likes of FTN Network, Yahoo, Bally Sports, and The Nation Network.
For Spotlight, Purchase All About US Exposure
Via its Racing Post offering, Spotlight is well-known in the UK and Ireland, and several of its clients include William Hill, multiple Swedish sportsbook operators, Bet365, and 888 Holdings, confirming the company has international reach.
The Alarm Sports acquisition appears to be aimed squarely at shoring up Spotlight’s US exposure, and if forecasts are accurate, the purchase could prove prescient.
By some estimates, the North American iGaming and sports betting markets will ascend to $42 billion by 2030, and analysts see up to $30 billion in revenue being driven as a result of media partnerships.
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