While most US sports media companies have pivoted to collaborations with leading operators, performance marketing firm Gambling.com Group has pursued a distinctive approach. In recent years, Gambling.com has forged partnerships with newspaper giants Gannett and McClatchy. These collaborations entail Gambling.com assuming responsibility for a significant portion of the newspapers’ digital sports betting coverage.
Newspapers Still Boast Significant Reach and Popularity
This shrewd arrangement sees Gambling.com generate content to attract bettors to sportsbooks, with revenue shared between the company and the newspaper owners based on successful referrals. While Gambling.com did not disclose specific details of its media agreements, Peter McGough, the company’s SVP for investor relations, indicated that this strategy contributed approximately 15% to its total revenue of $108.7 million in 2023.
Charles Gillespie, founder and CEO of Gambling.com, commented on the company’s strategy, highlighting how the model allowed both parties to leverage their strengths. High-profile newspapers with large readerships, trusted legacies, and websites with robust search engine rankings can efficiently bring Gambling.com’s engaging content to the forefront, incentivizing readers to engage with sportsbooks.
This model has emerged as the best use in terms of ways for legacy media companies to leverage their assets to make money off of sports betting.
Charles Gillespie, Gambling.com founder and CEO
The editorial integrity of newspapers remains intact under these partnerships, with Gambling.com content clearly labeled and disclaimed. Legacy media companies retain editorial approval over published content, ensuring transparency for readers. The success of this model indicates that readers positively engage with this content, highlighting that traditional online marketing may miss some demographics.
Evolving Markets May Present New Opportunities
Gannett, which owns USA Today and manages over 200 local newspapers, views partnerships like the one with Gambling.com as a valuable means to enhance engagement and generate additional revenue to support journalism. Mike Reed, CEO and chairman of Gannett, emphasized the importance of diversifying revenue streams in light of evolving reader behaviors.
For Gambling.com, these partnerships represent a strategic approach to augment its portfolio of assets. While the company operates various websites, partnering with established media outlets provides immediate access to a broad audience without requiring extensive investment in site development and search engine optimization and avoids rising competition in the online space.
With the legal sports betting market in the US poised for substantial growth, these collaborations offer a lucrative avenue for media companies and performance marketing firms to capitalize on the burgeoning industry. While Gambling.com remains focused on its existing partnerships, the potential for further expansion looms as market trends unveil fresh opportunities.
