Gambling company considers major move

Three years after purchasing Vegas Sports Information Network (VSiN), DraftKings is considering making a major move with the multiplatform sports betting broadcast and content company.

As noted by Casino.org, consulting and research firm Eilers & Krejcik Gaming (EKG) is reporting that DraftKings is on the verge of divesting VSiN. The company’s original founder, Brent Musburger, is the most likely buyer.

DraftKings potential sale of VSiN — which it purchased for $70 million — back to Musburger has drawn natural comparisons to the deal that saw Penn Entertainment sell Barstool Sports back to founder Dave Portnoy for a transaction price of $1 last summer. Despite taking a more than $800 million loss on Barstool, selling the company back to Portnoy allowed Penn to escape its debt and enter a licensing agreement with ESPN to rebrand its Barstool Sportsbook to ESPN Bet.

While the Penn-Barstool deal is a natural comparison, it remains to be seen how much Musburger would be paying to get his company back in a potential deal. It’s also unclear whether DraftKings—which currently has a marketing deal with Barstool Sports —is eyeing a subsequent transaction or if it’s prepared to cut its losses with VSiN after three years.

“Media companies don’t necessarily make good betting companies,” EKG stated.

Originally founded by Musburger as a radio network in 2017, VSiN operates out of the Circa Sportsbook and The D Hotel in downtown Las Vegas. It streams 18 hours of daily content and operates a 24/7 channel. VSiN content can also be found on the DraftKings Network, with the Lombardi Line, hosted by former NFL executive Michael Lombardi and Stormy Buonantony, airing on the streaming channel from 2-3 p.m. ET Monday through Friday.

While DraftKings’ purchase was aimed at bolstering the company’s content offerings, VSiN’s presence at the sportsbook operator has seemingly taken a backseat to its partnership with Meadowlark Media and a variety of standalone shows like Gojo and Golic and The Ross Tucker Football Podcast . It will be worth monitoring what changes the potential divestment of VSiN could lead to, with an expanded content-based partnership with Barstool appearing to be an obvious possibility.

[ Casino.org ]

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