Playmaker expands into online gaming affiliation through $32M Wedge Traffic purchase

Digital sports media company Playmaker Capital announced Tuesday the acquisition of Glasgow-based affiliate marketing business Wedge Traffic to enhance its iGaming and affiliate presence in the U.S. market. The addition of Wedge will power Playmaker's ability to meet the increasing demand for sports betting and casino content, the firm noted. Playmaker acquired 100% of the shares of Wedge for aggregate consideration of approximately $31.2 million.

"Wedge's technical and affiliation expertise, combined with Playmaker’s ecosystem of highly engaged sports fans, will create significant value for online sportsbooks and casino operators that are vying to acquire and retain customers, and facilitate a safe and fulfilling iGaming user experience," the company said in a statement.

With the acquisition of Wedge, Playmaker is "evolving from a pure digital sports media business to also becoming a leading affiliate" for the newly regulating iGaming industry across the U.S. and Canada. Additionally, the expertise that Wedge brings to Playmaker will be leveraged "for the newly regulating Latin American markets," the company further explained. Wedge is Playmaker’s 15th acquisition since April 2021.

Wedge employs proprietary user acquisition tactics and owns and operates eight web properties specifically curated to deliver its audiences directly to the regulated online sportsbook and casino operators. With a core focus on the U.S. market, Wedge properties display real-time state-by-state promotions, welcome bonuses, and one-time offers, among other opportunities related to long-term betting lines.

Describing Wedge, the company added that "through safe play content, such as actionable insights and strategies, Wedge is facilitating a fun and engaging experience while also fuelling the growth of online gaming by offering sportsbooks and casinos targeted user acquisition channels." 

Wedge's high visibility calls to action drive outsized user conversion, resulting in highly targeted marketing campaigns for Playmaker’s partners and relevant offers for Playmaker’s users, a press release explains. By introducing a new center of excellence in affiliation, Playmaker will also be able to supplement current revenue streams derived from its pure sports-centric media brands to generate higher revenue per user from online operators. 

The company informed that Wedge's founders Dan Kersh and David Copeland will join Playmaker’s senior leadership team and provide expertise in iGaming affiliation, "a key vertical" that Playmaker has planned to further activate.

Jordan Gnat, Playmaker's CEO, said: "We have been very clear that creating a center of excellence in affiliate was key to rounding out our offering as a leading sports media business. We look to super-serve all of our partners, and Wedge allows us to better serve critical customer segments, sports betting, and iGaming operators."

"The team at Wedge is superb and we could not be happier having them join our family. Dan, David, Ryan, and their team have worked together for years and they have quickly built relationships within Playmaker over the past few months. This gives us great confidence that we can win together, leveraging the assets and expertise already present in our Playmaker ecosystem," the CEO added.

For his part, Dan Kersh, Wedge's CEO, commented: "Outside of the fact that Playmaker's diverse portfolio of brands will directly complement our business, there were two key reasons for making the decision to join the Playmaker family.

"Firstly, they understand how to support and accelerate data-driven marketing within the iGaming sector. Secondly, and perhaps of even greater importance, they appreciate the value of creating a winning culture and how it must be considered the heartbeat of any successful business," Kersh added.

Wedge is currently active in 16 states and in the province of Ontario. It currently has affiliate marketing relationships with 15 online sportsbooks and casinos, ensuring that its platforms supply "a significant number" of new and recurring customers to "North America’s largest iGaming operators."

Playmaker acquired 100% of the shares of Wedge for aggregate consideration of approximately $31.2 million. The purchase price consideration consisted of a cash payment on closing of $8.5 million, the issuance of 3,694,933 Playmaker common shares, and contingent consideration of approximately $20.7 million.

The contingent consideration consists of two separate earn-out payments in an aggregate amount of approximately $16.7 million, payable to the sellers upon achieving certain revenue and EBITDA targets in each of the 12-month periods ending December 31, 2023 and December 31, 2024.