On May 9, Betr Holdings, a micro-betting focused sports wagering company based in Miami, Florida, revealed that it has bought the Chameleon Platform from Vancouver-based FansUnite Entertainment. The transaction agreement was officially concluded on May 8.
Transaction agreement:
Under the transaction agreement, Betr purchased the Chameleon source code, related documentation, intellectual property and physical assets from FansUnite for a total price of $7,448,000.
This consists of $2,234,400 in cash and $1,489,600 in equity at closing and $2.234.400 in cash and $1,489,600 in equity to be paid during the 12 months following the closing of the transaction subject to certain milestones being achieved during performance. The transaction is signed and closed at the same time.
Acquisition:
As the Chameleon platform offers a complete suite of gaming solutions, involving Player Account Management (PAM), sports wagering system and casino management, in addition to being certified by Gaming Labs International (GLI) in many U.S. jurisdictions, this acquisition provides Betr with an opportunity to vertically integrate PAM, sports wagering engines, online casino technology and other potential future Betr Gaming’s verticals into its direct-to-consumer platform.
Furthermore, this speeds up Betr’s wide coverage of the sports wagering market and iGaming capabilities, involving the ability to introduce a fully integrated sportsbook and casino, while simultaneously saving on long-term product costs.
Commenting on the acquisition, Joey Levy, Founder and CEO of Betr, said: “We are thrilled to acquire the Chameleon platform from FansUnite and to also welcome the engineering team that has been working on this platform for several years to the Betr family. This is a transformational transaction for Betr that enables Betr Gaming to fully control our ability to execute against our core strategy, while also capturing a material amount of gross margin for our business model.
“Our current product experience is very much a beta product, which we refer to internally as V0 of the Betr product experience. We released V0 to get live as soon as possible, which has enabled us to 1) build our user base and accrue revenue in the early stages of our business; 2) learn from user feedback and data to inform future iterations to the product experience; and 3) demonstrate to the marketplace the core tenets of our vision: 1) A simple, intuitive, and entertaining UI/UX, 2) instant gratification-focused betting, and 3) a challenge to the industry’s incorrect assumption that sportsbook is a commoditized product by releasing something fundamentally different than our competitors. With the Chameleon platform and team, we can now immediately begin work on developing V1 of the Betr product experience, which we expect to launch during H1 2024.
“Finally, we are thrilled to have been able to execute this acquisition in a cost-effective manner consistent with how we have rolled out Betr Gaming and Betr Media from both market access and talent acquisition standpoints to date — by entering into strategic transactions that feature an equity component to align incentives with our partners who believe in Betr while helping Betr preserve cash.”
Scott Burton, CEO of FansUnite, added: “With this transaction, we have again proven both our commitment and our ability to put FansUnite on the path to profitability. Additionally, we are pleased to continue to benefit from the tremendous potential we see in Betr through our equity stake in the company.”