Vivid Seats has taken a step into the gambling world, announcing it has acquired Betcha Sports, Inc. Monday morning. The deal makes the ticket resale marketplace (NASDAQ: SEAT) the parent of Betcha, which is “a real money sports app with social and gamification features that enhance fans’ connection with their favorite live sports,” according to the purchase announcement.
Vivid Seats is paying $25 million for Betcha, with a possibility of adjustments of up to $40 million more depending on earnings.
“The acquisition of Betcha further strengthens our position as a leading marketplace, accelerating our journey into naturally adjacent areas with engaging features that deliver unique experiences for our customers,” said Stan Chia, Chief Executive Officer of Vivid Seats. “We have been incredibly impressed with their continued growth and are excited to welcome the Betcha team to Vivid Seats, as we combine their new way to play with our desire for fans everywhere to experience it live. We believe this acquisition can significantly increase our TAM, while allowing for customer acquisition synergies with our high interest fan base. I look forward to leveraging our collective expertise and passion to drive enhanced fan engagement through discovery, loyalty, and content to deliver outstanding customer experiences.”
With sports gambling growing in the wake of the end on the ban for the practice outside of a handful of states that had exemptions, sports organizations have been growing into the new space as a source of revenue. The NCAA ended its ban on hosting championship events in states that allow sports betting, and many professional teams have begun linking up in marketing deals with sports betting groups.
Betcha’s acquisition makes Vivid Seats the first ticketing company to gain an active stake in the gambling world, which some view as a natural progression for companies already heavily invested in the sports world to grow a side revenue stream from. Presumably, their bet on the company indicates a belief that engaging fans who buy tickets through their platform with betting options, and engaging betters with the opportunity to purchase tickets bring a strong synergistic possibility to their future plans.
“Vivid Seats and Betcha share a mutual commitment to helping fans experience the thrill of live events combined with a new and innovative, yet simple way to play. We could not have found a better partner than Stan and the Vivid Seats team, as we introduce a new gaming experience to millions of Vivid Seats customers.”
Vivid Seats share prices have dropped from a high of around $13.75 down to an even $10.00 in recent trading. That amount equals the share price of Horizon Aquisition (HZAC) just prior to its merger with the ticketing company that brought it public in October.