Gambling.com Group has agreed to acquire Las Vegas-based booking platform Spotlight.Vegas while also announcing record Q2 revenue of $39.6m (£29.2m).
Gambling.com Group will pay $8m at closing to purchase Spotlight.Vegas and will also pay up to an additional $22m, subject to performance-related targets being achieved through to the end of 2027.
The booking platform has partnerships with more than 40 clients in Las Vegas, including entertainment venues and land-based casinos, offering show tickets and hotel bookings.
Users of Spotlight.Vegas purchased $30m in tickets last year.
The affiliate said the deal will be paid for via existing cash on hand and future cash flow. Spotlight is anticipated to produce net revenue of at least $8m and incremental adjusted EBITDA of roughly $1.4m for full-year 2026.
Gambling.com Group CEO Charles Gillespie said: “The addition of this custom-built booking platform will help drive further monetisation of our audience, expands our client base to include land-based operators and gives our digital professionals a new platform to show off their industry leading marketing talent.
“We are confident that we can better operate this asset through optimised marketing spend and improved conversion.
“Medium and long term, we expect to deploy the technology on our owned-and-operated sites like Casinos.com, and take it beyond Las Vegas.
“With our prior acquisitions of RotoWire, BonusFinder, Freebets.com, OddsJam and OpticOdds, we have established a strong track record of successfully identifying and closing strategic, accretive acquisitions in a highly capital efficient manner.
“We expect the acquisition of Spotlight.Vegas to be no different and add another entry to our impressive list of successful transactions which create additional shareholder value.”
Financially, the affiliate reported record revenue of $36.9m, a 30% year-on-year (YoY) increase.
The majority of revenue was derived from North America ($19.1m), followed by the UK and Ireland ($11.1m) and other European markets ($6.6m).
Adjusted EBITDA grew 22% YoY to $13.7m with an adjusted EBITDA margin of 35%.
Free cash flow was up 36% YoY to $8.2m, while Gambling.com Group delivered 108,000 new depositing customers for the three months ending 30 June.
Management said NDCs were in line with Q2 2024, which had benefited from the launch of online sports betting in North Carolina in March last year.
For H1, revenue increased 34% YoY to $80.2m, with an adjusted EBITDA of $29.5m – up 38% YoY.
Gambling.com Group has adjusted its full-year guidance to a revenue range of $171m to $175m, with adjusted EBITDA of $62m to $64m.
The affiliate said the adjustment stems from the contributions of Spotlight.Vegas and December’s sports betting launch in Missouri.
Gambling.com Group’s share price is down 14.5% in pre-market trading.
On the affiliate’s finances, Gillespie said: “Our second quarter performance was driven by two factors which reflect important broader trends in our business.
“First, is an accelerating diversification away from the traditional search channel in favour of a more omnichannel approach, in particular with the marketing business.
“Second, is an accelerating diversification into revenue models beyond marketing, including sports data services.
“As we continue to invest to expand our footprint in the gambling and entertainment ecosystem, the strategic acquisition of Spotlight.Vegas provides us with yet another scalable, technology platform which complements our existing portfolio and moves us another step closer to our goal of $100m in adjusted EBITDA.”
The post Gambling.com Group acquires booking platform Spotlight.Vegas for $8m first appeared on EGR Intel.
Affiliate announces purchase of Las Vegas-based firm to diversify revenue stream, alongside record Q2 revenue of $39.6m
The post Gambling.com Group acquires booking platform Spotlight.Vegas for $8m first appeared on EGR Intel.