Affiliate Leaders rounds off the year by unpacking Gambling.com’s $160m acquisition of Odds Holding Inc, and how the recent spate of M&A activity continues to reshape the wider affiliate space.
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The online gambling industry is no stranger to major deals. And this week has been no different after Gambling.com announced its acquisition of Odds Holding Inc, the parent company of OddsJam.
This acquisition, from the outset, seems like much more than a big-name acquisition – it appears to be an agreement that will shift the state of play within the gambling industry, particularly for gambling affiliates.
For an industry rooted in strategy, odds and risk-taking, the $80 million (with the potential for a further $80 million) deal to acquire Odds Holdings Inc is something of a bold bet.
Yet, it’s not just Gambling.com rolling the dice here; yes, it’s Gambling.com that has control over the purse strings, but this deal has the potential to ripple through the wider affiliate industry, raising questions about the evolving dynamics of influence, innovation and market consolidation.
More than just an acquisition
For years, Gambling.com has solidified its position as a leader within the igaming affiliation space. Its model – connecting bettors to operators while profiting from commissions – has been extraordinarily lucrative, as evidenced by the company’s record-breaking Q3 performance. A 21% revenue jump to $91 million, alongside a huge 91% increase in net income, indicates a business already firing on all cylinders.
But why is now the right time to make a huge acquisition? And what was the thought process behind acquiring Odds Holding Inc?
Spanning more than 300 sportsbooks, OddsJam’s core real-time odds comparison tool is a microcosm of where the industry is heading in the next few years. Namely, the adoption of more data-driven technology that centres around scalability and elevating the overall user experience.
Gambling.com’s decision to absorb OddsJam, complete with its lightning-fast infrastructure capable of processing over one million requests per second, underscores a significant shift in priorities.
The affiliate model is evolving from simply connecting bettors to operators towards becoming a more sophisticated value chain, rooted in proprietary tech and enhanced user tools. We saw this earlier in the year with Sportradar’s acquisition of XLMedia’s North American gaming assets – a takeover that not only grabbed the attention of many industry analysts, but also showed a marked shift towards data, analytics and affiliate-driven customer acquisition.
M&A – the new norm?
In a similar vein to the Sportradar takeover, Gambling.com’s acquisition of OddsJam could well be a watershed moment for the affiliate industry, with the brand essentially redefining the meaning of a gambling affiliate.
Traditionally, affiliates have centred much of their strategy around content and building community – be it through tip-based forums, SEO-driven reviews or the offering of bonuses.
However, the acquisition of OddsJam raises the stakes by showing that affiliates can integrate advanced tech and data-driven services into their arsenal. Ultimately, it is setting a precedent that success in the gambling affiliate market may increasingly depend on owning innovative tools rather than merely promoting them.
Beyond the immediate financial and strategic implications, this acquisition also reinforces a narrative that has been lingering around the affiliate space for quite some time, which many have chosen to brush under the carpet. Affiliates must either adopt new technologies or risk fading into the background.
OddsJam’s low-latency infrastructure and ability to manage terabytes of data daily epitomise the modern gambler’s appetite for instant gratification and actionable insights.
In an era in which bettors expect cutting-edge tools at their fingertips, affiliates who can’t match those demands risk irrelevance. Gambling.com’s integration of OddsJam suggests that future market leaders will be those who view technology not as a cost centre but as the core of their value proposition.
The wider impact
For smaller affiliates, Gambling.com’s recent announcement could set alarm bells ringing. After all, it puts them at a crossroads: innovate or close the doors for business. Those wanting to keep pace with the ‘big guns’ will need to consider adopting tech-driven solutions that can also offer them a unique position of securing long-term user engagement.
For Gambling.com, it appears that it has identified a golden opportunity to integrate OddsJam’s tools into their roster, allowing it to not only drive player engagement but also offer real-time insights that go well beyond a simple click-through transaction.
As well as enhanced tech capabilities, this could also translate to more robust player loyalty – a metric that many smaller affiliates will face difficulties in replicating without making significant investments in new technologies.
Diversification
As well as offering Gambling.com a strategic advantage, it has to be said that one of the most telling elements of this agreement is how it aligns with the brand’s strategy to diversify its revenue streams.
Charles Gillespie, CEO, asserted that this M&A activity provides “recurring revenue streams” independent of traditional affiliate activity and is a significant nod to a broader reality of the igaming industry in 2024/25. Gambling markets are volatile, particularly across North America, and shifting regulations and player behaviours are continuing to reshape how we interact as an industry.
By integrating OddsJam into its roster, Gambling.com is no longer putting all of its eggs into one basket, and ultimately shielding itself from over-reliance on any element of its business. As the industry continues to mature, this ability to adapt and proactively navigate change will be key to creating a sustainable business.
The lesson here is clear. Relying solely on commissions may no longer be enough to weather the storms of an increasingly sophisticated and competitive industry. Diversification will be the key battleground that separates industry leaders from the crowd.
What next?
Gambling.com is expected to wait until after Christmas before integrating OddsJam into its wider portfolio, giving a few weeks for the wider affiliate industry to come to terms with the latest announcement.
But this acquisition is more than just a headline deal to wrap up the year; it’s a clear signifier that the affiliate industry must evolve if it not only wants to survive, but thrive. This evolution came in the form of technology-driven solutions for Gambling.com, and is no doubt a shift that we will continue to see as we edge into 2025.
The stakes, it seems, have never been higher. And in this game, as Gambling.com is proving, the house doesn’t always win. Sometimes, the smartest bet is on the player who owns the odds.
