Entercom Communications, the largest sports radio network in the United States, furthered its push into sports betting Monday with the acquisition of QL Gaming Group, which includes the mobile sports betting app BetQL, in an all-cash, $32 million deal.
It was the second notable sports betting deal in less than two weeks for Entercom, which signed a six-year deal with FanDuel on Oct. 30 to make the online titan its official sportsbook partner. Entercom owns and operates 39 radio stations that reach nearly 30 million listeners monthly across the United States, including three cities in the top four markets — New York, Chicago, and Philadelphia — that have legalized sports betting or reach in markets with easy access to legal sports betting.
The sports betting BetQL app runs on a proprietary algorithm that analyzes more than 350,000 unique bets made annually in real-time and also provides line movement and historical betting results. Both the sports betting app and the daily fantasy sports site RotoQL have a variety of subscription offerings that range from single to multisport options that can be purchased on a weekly, monthly, or annual basis.
“As the sports betting marketplace continues to grow exponentially, the acquisition of QL Gaming Group is a perfect fit for our unrivaled sports audio platform,” said David Field, Chairman, President and Chief Executive Officer, Entercom, in a joint statement. “Integrating QL’s analytics and content with our sports brands enables us to deliver unparalleled experiences for sports fans.”
.@Entercom announces the acquisition of QL Gaming Group, bringing unrivaled data, analytics and insight-driven content to its sports broadcast stations, influential podcasts and @radiodotcom, and delivering a new unparalleled experience for sports fans.https://t.co/igOX5p04Ky
— Entercom (@Entercom) November 9, 2020
QLGG co-founder Park to remain with company
The QL Gaming Group, which was founded in 2015, has a technology portfolio highlighted by its sports betting data and analytical capabilities that power BetQL and RotoQL. It also provides simulation-based sports outcome predictions and game-scoring through Accuscore and has substantial analytical coverage of the ATP and WTA tours through Tennisinsight.com.
Co-founder and QL Gaming Group CEO Justin Park will continue to lead the business side of the company and report to Entercom President of Sports Mike Dee and Chief Digital Officer J.D. Crowley. According to the press release, QL Gaming Group is forecast to generate approximately $12 million in revenue for 2021 — the first full year of ownership — and maintain an EBITDA margin in the high 20s.
“We are thrilled to be joining the leading sports audio platform, bringing our betting insights and expertise to such a loyal and dedicated fan base,” Park said. “Between our capabilities to make bettors better and the influence Entercom’s platform provides, we can now offer a wholly unique proposition to the sports enthusiast that is second to none.”
Shares of Entercom closed at $1.78 on the New York Stock Exchange, up 23 cents from Friday, but had slid to $1.66 during after-hours trading.