FansUnite Strengthens Strategy with DragonBet Partnership and Platform Transition
FansUnite Entertainment Inc has announced a significant strategic move to enhance its business operations. The company has reached an agreement with DragonBet, a UK sportsbook based in Wales, to migrate off the Chameleon Gaming platform. This transition is planned to take place on or about September 3, 2023, as part of FansUnite’s broader strategy to streamline its operations.
Focus on specific segments of business
The decision to migrate DragonBet off the Chameleon Gaming platform aligns with FansUnite’s approach to focus its efforts on specific segments of its business. This move follows the sale of the Chameleon source code to Betr Holdings, Inc. on May 8, 2023. With the migration of DragonBet and the sale of the Chameleon source code, FansUnite aims to fully transition away from its business-to-business (B2B) platform licensing model.
As a direct outcome of these strategic moves, FansUnite anticipates achieving annualized cost savings of approximately $7.1 million. These savings will stem from reductions in various areas, including salary and selling, general, and administrative costs. The financial impact of these cost savings is expected to be reflected in the company’s financial results once the wind-up of the Chameleon Gaming platform operations is completed.
Moreover, FansUnite is optimistic about its financial outlook, projecting a positive cash flow in the fourth quarter of 2023. This optimism is based on the company’s strategic plan to enhance its financial efficiency by focusing on the more profitable affiliate segment. Notably, FansUnite’s affiliate segment contributed $23.0 million of its $27.3 million in revenue during Fiscal 2022.
Jeremy Huthungs stepping down from his role
In addition to these operational changes, the company also announced that Jeremy Hutchings, its Chief Technology Officer, will be stepping down from his role on September 30, 2023. This decision is aligned with FansUnite’s new strategic focus on the affiliate segment, which is expected to yield higher profitability. Hutchings will remain available to provide consulting support regarding the company’s plans to monetize the source code of the Chameleon Gaming Platform through potential further sales.
Scott Burton, CEO of FansUnite, expressed appreciation for Jeremy Hutchings’ contributions, stating “I would like to thank my co-founder Jeremy Hutchings for his contribution to FansUnite as he played an integral role during the early stages of the Company and we look forward to watching his future success.
“Additionally, we are pleased to have reached an agreement with DragonBet, which allows them to grow and will enable us to achieve roughly $7.1 million in cost-savings. These transactions advance our efforts of streamlining our business operations and put us in a position where we can expect to generate positive cash flow in Q4 2023.”