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DraftKings Rumored to Be Mulling VSiN Sale in Barstool/Penn-Style Deal

DraftKings (NASDAQ: DKNG) is rumored to be considering the sale of the Vegas Sports Information Network (VSiN), the Las Vegas-based sports wagering radio network it acquired for $70 million in March 2021.

VSiN New Hampshire — Brent Musburger promoting sports betting network VSiN. DraftKings may be considering a sale of the radio network. (Image: VSiN)

Eilers & Krejcik Gaming (EKG) noted the online sportsbook operator is close to divesting VSiN and it could be for pennies on the dollar in a transaction some are comparing to Penn Entertainment (NASDAQ: PENN) dumping Barstool Sports last year to founder Dave Portnoy for just $1.

EKG observed that the likely buyer is VSiN founder and veteran broadcaster Brent Musburger. VSiN was founded in 2017 and much of the network’s radio shows are recorded at Circa Sportsbook and The D Hotel in downtown Las Vegas.

VSiN’s content includes 18 hours a day of sports wagering coverage, and the company has a 24/7 stream. It has dedicated channels on iHeartRadio and TuneIn, as well as smaller radio stations across the US. The company’s offerings are also available on several linear television platforms and streaming services, such as fuboTV and Sling TV.

DraftKings VSiN Underscores Difficult in Media Deals

Neither DraftKings nor VSiN has publicly commented on the possibility of a transaction, but should a sale come to light, it would underscore the difficulty gaming companies have found in wringing adequate profits from the media relationships they were previously so bullish on.

When DraftKings acquired the sports betting radio network in 2021, the $70 million it paid was viewed as substantial at the time, but a credible investment because industry observers speculated the intersection of media and sports wagering companies was a combination that would eventually drive $30 billion (including iGaming) in revenue by 2030.

The realities have proven much different as highlighted by Penn unloading Barstool for a mere $1 and other ill-fated examples of sports betting/media company relationships prove “that media companies don’t necessarily make good betting companies,” according to EKG.

Interestingly, Barstool signed a marketing deal with DraftKings earlier this year.

How VSiN Could Look as Fresh Standalone Entity

Should DraftKings ultimately sell VSiN, there would likely be changes at the radio network, though more from a marketing relationship. Although the bulk of VSiN shows are broadcast from Las Vegas, on-air talent mostly cite DraftKings odds despite the fact that the operator doesn’t offer betting in the state.

If it’s sold by DraftKings, VSiN would likely find a new odds provider — potentially Circa — because the network has ample brand equity in the betting community and Musburger is well-known to bettors and fans alike.

VSiN, The Sports Betting Network, is the first sports media company dedicated to providing news, analysis and proprietary data to the millions of Americans who wager on sports and make sports betting a multibillion-dollar industry,” according to the media company.

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Okada Manila Owner Folds on Acquiring Stalled Emerald Bay in Philippines’ Cebu

The parent company of Okada Manila in the Philippines’ Entertainment City revealed Tuesday it will no longer pursue acquiring the stalled project in Cebu called Emerald Bay.

Okada Manila Philippines Emerald Bay — PH Resorts’ Emerald Bay remains unfinished on Mactan Island in the Philippines. The casino resort lost a buyer this week with Okada Manila’s parent organization bowing out of the takeover talks. (Image: PH Resorts)

In a statement from Tiger Resort, Leisure and Entertainment, Inc. (TRLEI), the company said it informed PH Resorts Group that it’s terminating its plans to acquire the Cebu integrated resort. TRLEI reps said the tentative takeover agreement reached in December is formally off the table.

On July 1, 2024, TRLEI notified PH Resorts of the termination of the Term Sheet as certain Closing Conditions under the Term Sheet are not or cannot be fulfilled. Due to confidentiality obligations, the Company does not provide specific details of this matter,” the TRLEI release read.

When TRLEI reached the December 2023 deal to acquire the partially finished integrated resort, the company said it would bring it to completion by 2026. The resort is to feature two 15-story hotel towers with 642 guestrooms, 18 bars and restaurants, retail shopping, conference space, and a casino floor with 700 slot machines and 140 live dealer table games.

Not the First Time Emerald Bay Lost a Buyer

Emerald Bay was first floated by PH Resorts, a subsidiary of the Udenna Corporation, in 2017. Udenna is the conglomerate of Philippines businessman Dennis Uy.

Uy, worth an estimated $440 million by Forbes, inherited his father’s oil and gas company, Phoenix Petroleum. He used his family’s riches to establish Udenna in 2002. The firm has investments in lubricants, shipping and logistics, construction, hospitality, and gaming.

Udenna’s resort arm, PH Resorts, has just one property. The Donatela Resort & Sanctuary is located on Bohol Island and offers 12 villas.

Uy envisioned Emerald Bay as PH Resorts’ flagship development and “the crown jewel of Philippines resorts.” More than six years after announcing the project, Emerald Bay sits unfinished on its six-acre prime beachfront lot in Cebu’s Punta Engano.

TRLEI isn’t the first company to pull out of takeover talks for Emerald Bay. In March 2023, Bloomberry Resorts, which owns and operates Solaire in Manila’s Entertainment City, rescinded its plans to acquire Emerald Bay.

Bloomberry was also vague in its decision to fold on the Cebu resort.

“The Company has decided to terminate the Term Sheet … after considering the results of due diligence,” a Bloomberry investor notice read.

Emerald Future Unknown

It’s unclear whether Uy and PH Resorts will move forward in completing Emerald Bay. PH reported an annual operating loss of PHP1.81 billion (US$31 million) last year.

A publicly traded company on the Philippine Stock Exchange, PH Resorts officials said during the company’s earnings call earlier this year that the firm is amid a fundraising initiative. But executives conceded that PH is facing “material uncertainty” that casts doubt on its ability to raise capital, either through stock sales or financial loans.

PH’s primary lender since its inception has been China Banking Group. China’s six state-owned banks were downgraded by Fitch Ratings in April. Fitch reasoned that China’s slowing economy could result in the banks not being as financially supported by Beijing as they have been in the past.

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BlueBet Departing Indiana, US Strategic Review Ongoing

Australian sportsbook operator BlueBet announced on Monday that it’s withdrawing from Indiana to focus its attention on other states. The gaming company also reminded investors that a strategic review of its US operations is ongoing.

BlueBet gained access to the Indiana sports betting market via an agreement with Horseshoe Hammond, a casino operated by Caesars Entertainment. The Aussie company terminated that pact effective June 30, but noted that termination was mutual.

BlueBet, which was founded in 2015 and went public in Sydney in 2021, said it will focus on its sports wagering operations in Colorado, Iowa, and Louisiana, as well as “continuing to roll out its business-to-business (B2B) Sportsbook-as-a-Solution (SaaS) offer.”

In Colorado, Iowa, and Louisiana, BlueBet has exposure to some of the fastest-growing sports betting states in the US without the expenses required to operate in major markets, such as New York or Pennsylvania.

BlueBet Still Sees Opportunity in US

As more states authorize mobile sports betting, market share has increasingly consolidated around just two operators, FanDuel and DraftKings.

That’s made it difficult for smaller players such as BlueBet to gain adequate market share, and that could be one reason why the operator commenced the strategic review. In the statement announcing the Indiana departure, the gaming company didn’t provide details on the strategic review except to say it is ongoing.

BlueBet remains committed to maximising value for shareholders. The Company believes focusing its efforts and capital on its outperforming Australian business, while continuing to scale in the US with its ‘Capital Lite’ market entry strategy, will deliver the best returns on capital,” according to the statement.

Signaling it remains committed to the US market, BlueBet said it inked a B2B deal in Ohio in March. The operator believes such agreements can reduce its sportsbook operating expenses in this country.

BlueBet Not the First Aussie Operator to Find US Difficult

BlueBet isn’t the first Australian bookmaker that’s found it difficult to replicate the success found in its home country in the US. For example, PointsBet sold PointsBet US to Fanatics last year for $225 million after that unit struggled to gain noticeable market share in this country and had become a drag on the parent company’s financials.

Both BlueBet and PointsBet have solid sports wagering operations in Australia, which is one of the most mature sports wagering markets in the world. It’s a jurisdiction in which gaming industry consolidation rumors are persistent, but there, BlueBet might be a buyer, not a target.

Here in the US, BlueBet’s strategic review could be a sign the parent is willing to sell, but rumors regarding potential buyers haven’t surfaced.

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