Waterhouse Venture Capital: Market Comparisons

## Waterhouse Venture Capital: Market Comparisons – Marketing & Partnerships – iGB

In a recent article, Tom Waterhouse of Waterhouse Venture Capital examined the possibilities for partners in developing regulated markets, particularly in the digital currency gambling sector.

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Waterhouse Venture Capital: Market Comparisons
As we noted in previous updates (e.g., July 2022), gambling partners primarily earn income by guiding bettors to gambling enterprises.

The key income models are revenue sharing and cost per acquisition (CPA). Gambling partners employ a range of tactics to drive traffic to gambling companies. These tactics include creating sports-focused media content or contrasting the odds and promotions of different gambling companies.

Oddschecker is one of the most well-known gambling company comparison websites. The platform contrasts odds and promotions from over 25 UK gambling companies, while also providing betting advice and insights.

**Developing Markets**
Partners like Oddschecker are particularly flourishing in developing markets like the US, as operators fiercely compete for clientele. Both large and small operators are willing to invest up to $1,000 to acquire a single customer. This utilizes all available marketing channels, including affiliate marketing.

The two largest gambling operators in the US have invested over $1 billion on marketing.

Many partners have already recognized the potential of the US market.

As a result, they are concentrating on organic expansion and merger and acquisition activities in the area.

In May 2021, Better Collective finalized the $240 million purchase of The Action Network. The Action Network provides odds comparisons, various podcasts, and other types of media content.

In July 2021, Bruin Capital acquired Oddschecker from Flutter for a potential total price of $218 million – $190 million upfront, plus delayed payments. Through this acquisition, Bruin aims to enhance Oddschecker’s services while supporting its entry into the profitable US market.

“There is a strong connection between Oddschecker’s development in the UK and its potential in the US, where the market is highly fragmented and discovery and customer acquisition expertise will be in high demand,” stated George Pyne, founder of Bruin Capital.

Furthermore, in November 2021, FansUnite acquired American Affiliate, a collection of US affiliate websites, for $58.2 million, representing 9.7x EBITDA. At the time of the acquisition, American Affiliate had driven 150,000 new depositing customers to US betting operators. This included DraftKings, FanDuel, and BetMGM.

**Explore Crypto Betting Odds**

While the US and other newly regulated markets offer exciting opportunities for affiliates, we are particularly enthusiastic about the prospects for affiliates focused on directing bettors to cryptocurrency betting operators.

We last reported on the wider opportunities in cryptocurrency betting in May.

Based on information from GlobeNewswire, the worldwide online wagering sector brought in roughly $58.2 billion in income during 2021. Projections indicate that this figure will climb to $145.6 billion by 2030.

We foresee that the sector’s future expansion will be fueled primarily by the widespread acceptance of cryptocurrency gambling.

Similar to the dynamics of the US market, there are currently numerous cryptocurrency gambling operators vying for market share. As a result, affiliate companies have reaped significant rewards in providing depositing bettors to cryptocurrency operators. Affiliate companies offer revenue share deals as high as 50%.

We believe there is a significant opportunity for comparison websites specifically targeting cryptocurrency operators. This untapped opportunity will continue to be attractive as the cryptocurrency gambling industry matures.

Considering OddsChecker was sold for $218 million, and 97% of its revenue came from the UK, a betting odds comparison website operating in the larger cryptocurrency gambling space would be a massive opportunity.

Furthermore, unlike the cryptocurrency operators themselves, affiliate companies are typically valued at much higher multiples of revenue. For example, Better Collective is currently valued at 12.5x EBITDA.

Betscanner
Betscanner’s primary service is comparing the odds offered by cryptocurrency gambling companies for sporting events.

The data required for odds comparison will be obtained through data scraping or direct partnerships with gambling companies.

The primary emphasis will be on simplifying the process of comparing betting odds in real-time, enhancing the user experience, and concentrating on esports.

We will generate revenue by charging operators a monthly subscription fee. This strategy will not only attract new customers but also encourage existing users to return due to increased market visibility. We will leverage tactics such as search engine optimization, Google Ads, influencer marketing, social media campaigns, and special signup incentives to spread the word.

Betscanner is one of numerous captivating ventures that Waterhouse VC is involved in.

**Crucial Details**

Kindly note that the details concerning OddsChecker, FanDuel, DraftKings, Better Collective, The Action Network, Bruin Capital, Flutter, FansUnite, American Affiliate, and BetMGM are derived from publicly accessible information about these entities. This information does not constitute financial counsel. The information about Betscanner is based on the company’s statements to us and similarly does not constitute financial advice. Waterhouse VC holds an option agreement and has entered into a partnership with Betscanner.

This document serves solely as general information and is not intended as investment advice. It is advisable to consult with a qualified financial advisor who can provide personalized guidance.

**Solely for General Reference**

This information is provided for general reference purposes only and does not constitute an offer to purchase or sell any financial product or service.

This document is designed for investors who are classified as “wholesale clients” under Australian regulations. It is not meant to provide you with financial or tax guidance, and does not consider your individual circumstances. We believe the information is precise, but we cannot guarantee its accuracy. Prior performance is not an assurance of future outcomes, and we do not promise any particular returns. We are not liable for any mistakes in this document.

Waterhouse VC is an Australian investment fund accessible to global investors with a minimum investment of A$1,000,000 or the equivalent in other currencies. This document was compiled by Waterhouse VC Pty Ltd, the trustee of the Waterhouse VC Fund.

Sandford Capital, a certified financial organization, has assigned a delegate (CAR 1296688) to manage proposals for units in the investment fund. This delegate is empowered to act on behalf of Sandford Capital.

**Investment Returns**

Prior performance of Waterhouse VC is not an assurance of future outcomes. Waterhouse VC does not pledge any particular returns or ensure the security of your investment. Tax consequences are not included in this data. We encourage you to consider investing for the long run.

**Copyright**

All rights are reserved. This information is safeguarded by copyright and cannot be duplicated without permission from Waterhouse VC.

**Legal**

These stipulations are governed by the laws of New South Wales, Australia. By agreeing to these stipulations, you consent to the authority of the courts of New South Wales for any disputes arising from these stipulations.

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