Gambling.com Group completes acquisition of Freebets.com

Online gaming player acquisition services provider Gambling.com Group has completed its acquisition of Freebets.com and related assets. The company anticipates these assets will generate revenue of approximately $10 million and incremental Adjusted EBITDA of approximately $5 million over the balance of 2024. 

Last month, Gambling.com Group brokered a deal to buy Freebets.com for total consideration between $37.5 million and $42.5 million. The final purchase price will depend on future revenue performance, noted the company.

The affiliate group will pay an initial $20 million plus an additional $10 million after six months of owning the business. Between $7.5 million and $12.5 million is due one year after completion, subject to revenue in 2024.

Charles Gillespie, CEO and Co-Founder of Gambling.com Group, commented: "While the expansion of gambling in the U.S. grabs all the headlines these days, many of the industry's most attractive markets remain in Europe, the historical home of the industry."

"I expect this acquisition to fundamentally change the balance of power within the European online gambling affiliate market and provide Gambling.com Group with a clear path to drive further growth in both our existing European markets as well as new ones," he added.

The CEO concluded: "As part of the transaction, we are gaining a number of new colleagues in the region. I look forward to sharing our leading technology platform and high-performance culture with our new team members."

Charles Gillespie

Overview of 2023

The acquisition was announced alongside Gambling.com Group publishing full-year results for 2023 and the year proved a successful one, with revenue rising 42.1% to $108.7 million.

Stand-out highlights for the group in 2023 included the launch of the Casinos.com domain. The company also struck up a new partnership with UK media publisher The Independent.

Accompanying the rise in revenue was a net profit of $21.1 million, in contrast to a $2.4 million loss in 2022. In addition, adjusted EBITDA for the year was 52.3% higher at $36.7 million.

Given its positive performance in 2023 and the new acquisition, Gambling.com Group is optimistic about its prospects for 2024. Revenue is set to be between $129 million and $133 million, the midpoint of which would be 20.5% ahead of 2023. As for adjusted EBITDA, the forecast range is $44 million to $48 million, with the midpoint 25.3% higher year-on-year.

According to the group, this guidance assumes no other US markets will open in 2024. It also said it makes the assumption it will not benefit from new acquisitions besides Freebets.com.