On Tuesday, Better Collective, the leading developer of educational platforms within the iGaming industry, acquired 60 percent of the shares of Rical LLC, also known as “RotoGrinders.” Rical LLC operates a number of different sites, including RotoGrinders.com, SportsHandle.com, UsBets.com, pocketfives.com, and Pennbets.com. The deal was for a reported $21 million.
Better Collective will acquire the remaining 40 percent of Rical LLC sometime between 2022 and 2024. The value of those remaining shares will be determined by the future growth and profitability of Rical LLC and Better Collective’s other United States-based businesses.
RotoGrinders began back in 2009 in Nashville. They began in the Daily Fantasy Sports industry. Since the PASPA ruling in May of 2018, RotoGrinders has switched its focus more towards sports betting. Better Collective’s buy-in will help RotoGrinders in its journey into the US sports betting market.
In 2018 RotoGrinders generated more than $8 million in revenue. That number is expected to increase to over $10 million in 2019 with their collaboration with Better Collective.
Better Collective has more than 2,000 websites and products under its name. The addition of RotoGrinders and its other websites will be a big jump into the US market for Better Collective. They plan to keep RotoGrinders headquartered in Nashville, and they have an office located in New York as well.
Jesper Sogaard, CEO of Better Collective, had this to say about the deal:
“Since PASPA was repealed by the US Supreme Court last year, we have carefully evaluated how best to establish Better Collective in the growing US market. We have assessed various acquisition opportunities, searching for access to strong products and dedicated people with insight into this market. We strongly believe that we found exactly that in RotoGrinders, where we see a strong and dedicated management team and talented employees.”
Calvin Spears, CEO and co-founder of RotoGrinders, said:
“Joining the Better Collective group will help us fully realize the potential we’ve created with the RotoGrinders network. Regulated online sports betting will create an enormous affiliate marketing opportunity in the US. We feel Better Collective is the perfect partner for us as this opportunity unfolds. The experience, resources, and technology they’ve built up over the past 15 years in European sports betting will prove incredibly valuable here. Our combined goal is to be the largest US sports betting affiliate, and we’re in a great position to make it happen.”
This acquisition is a big opportunity for both parties. Better Collective gets more involved in a US sports betting market that is expected to be a more than $6 billion industry. RotoGrinders, which started as a small DFS site, now has the resources and tools to expand into the sports betting market and be a big player as well.
Spears said that this acquisition will help “ramp up production, improvement, and innovation of the DFS tools and content that bring you to this site (RotoGrinders.com) each day. We’re excited to remain anchored in DFS while investing more aggressively in sports betting.”