Gambling.com diversifies its revenue stream through the acquisition of Spotlight.Vegas

[M&A Mergers And Acquisitions]
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Gambling.com Group Limited (NASDAQ:GAMB [https://seekingalpha.com/symbol/GAMB]) announced the acquisition of Spotlight.Vegas last week in a deal seen as diversifying its revenue stream

Spotlight.Vegas is a Las Vegas-focused booking and entertainment platform. The company was founded in 2020 by local entrepreneurs aiming to simplify and improve the process of discovering, planning, and booking Las Vegas entertainment. The platform specializes in streamlined online ticketing, hotel bookings, group event planning, and access to attractions, with a customer-first approach that emphasizes transparent pricing, low fees, and responsive service. Notably, Spotlight.Vegas works with over 40 clients, including top entertainment venues and several major land-based casinos, making it a central hub for Las Vegas visitors to book shows, attractions, and hotel accommodations. In 2024, users booked over $30 million in tickets via the Spotlight.Vegas service

The deal for Spotlight.Vegas, worth up to $30 million, includes an $8 million upfront payment upon closing, plus up to $22 million in possible earnouts based on performance targets set for the platform through 2027. Gambling.com (NASDAQ:GAMB [https://seekingalpha.com/symbol/GAMB]) expects the transaction to help diversify its revenue streams with a scalable, consumer-facing technology, as well as deepen the business with entertainment venues and land-based casinos.

The deal announcement was made in combination with Gambling.com's (NASDAQ:GAMB [https://seekingalpha.com/symbol/GAMB]) Q2 earnings report, which was impacted by Google again updating its search algorithm to negatively disrupt the company's search rank. Texas Capital Securities analyst David Bain lowered estimates on GAMB, but reminded that recent SEO headwinds could be short in duration. "GAMB has previously overcome algorithm changes in less than two quarters, and we believe the same should occur in this instance," he highlighted.

Shares of Gambling.com (NASDAQ:GAMB [https://seekingalpha.com/symbol/GAMB]) gained 2.0% in premarket trading on Monday after shedding 17% following the earnings release.

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