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DraftKings to Buy Betting-Content Provider Vegas Sports

DraftKings is buying the sports-betting-content provider Vegas Sports. Its hosts include the prominent broadcaster Brent Musberger.
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DraftKings  (DKNG)  shares rose on Tuesday after the online sports-betting platform said it would acquire Vegas Sports Information Network, a sports-betting-content provider. 

Terms weren't disclosed.

VSIN’s hosts include the prominent sports broadcaster Brent Musberger.

DraftKings shares recently traded at $58.68, up 0.8%. They had more than quadrupled (up 359%) in the past year through Monday, as consumers flocked to online betting during the COVID pandemic. 

At the same time the stock has gained 4.4% over the past six months, trailing the S&P 500’s 19% gain.

The takeover would "enable DraftKings, which is live with mobile and/or retail sports betting in 14 states, to further build out its content capabilities and will augment VSIN’s ability to broaden their audience alongside the expansion of legal sports betting in the U.S.,” the Boston company said in a statement.

VSIN, Las Vegas, "creates authentic and credible content that resonates with sports bettors at every level, whether they’re experienced or new to sports betting,” said Jason Robins, DraftKings’s chief executive.

Vegas Sports "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 said VSin Chief Executive Brian Musburger, Brent’s nephew, and his team would continue to manage VSin.

On Monday, DraftKings and Penn National Gaming  (PENN)  shares slid after a Deutsche Bank report that said the future of online sports betting in New York state was "hanging by a thread."

Analyst Carlo Santarelli said "the early read is that there are too many variant agendas and too little time to get this issue sorted out in this budget session.”