Vivid Seats buys into online gaming with $25m Betcha acquisition

Vivid Seats, the online ticketing business recently bought into by DraftKings, has begun its diversification into online gambling by acquiring Betcha Sports for $25m. An upfront purchase price of $25m will be paid in the form of Vivid Seats equity, with additional payments of up to $40m in earnouts that, if achieved, will be payable in a mix of cash and equity. Betcha, a real-money sports app with features social and gamification elements, has attracted funding from several industry veterans including Matt Davey, Eyal Shaked, Benjie Cherniak, Sandford Loudon, and Sean Hurley. Betcha’s internally developed tech stack includes a proprietary Player Account Management (PAM) module that integrates into its own DFS platform with compliance capabilities all designed for extensibility to sportsbooks and casinos. Vivid said the acquisition will allow it to “extend its marketplace technology into the online gaming sector, allowing millions of Vivid Seats customers to participate in daily fantasy gaming in a new way,” sentiments which were echoed by company CEO Stan Chia. “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,” Chia explained. “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,” Chia added. In October, DraftKings bought its way into Vivid Seats’ $1.95bn SPAC merger with Horizon Acquisition Corp., a deal heavily attributed to DraftKings shareholder and Los Angeles Dodgers and Lakers owner Todd Boehly.