FansUnite set for $7m in savings as it migrates DragonBet off tech stack
Firm confirms refocus of business operations on affiliate arm as migration follows sale of source code to Joey Levy’s Betr
FansUnite has reached an agreement with DragonBet to migrate the operator off the Chameleon tech stack.
The agreement, which should see the migration take place on or about 3 September, forms part of FansUnite’s strategy to streamline its business operations.
The move comes following the sale of Chameleon’s source code to micro-betting US-facing operator Betr for $7.4m.
FansUnite said this sale, and the migration of DragonBet, would allow the group to achieve annualised cost savings of around $7.1m which includes reductions in salaries and general administrative costs.
FansUnite will now shift its strategic focus to its affiliate arm, which accounted for $23m of $27.3m in total group revenue for full-year 2022.
The group noted the savings would result in an expected positive cash flow in Q4.
Wales-based DragonBet launched with FansUnite in April 2022 as the digital offering of Welsh bookmaker Lovell Brothers.
Elsewhere, the firm confirmed the departure of chief technology officer and co-founder Jeremy Hutchings, effective 30 September.
Hutchings will now pursue other opportunities following FansUnite’s decision to focus on its affiliate segment.
He will remain available to provide consultancy to the company as it plans to monetise its Chameleon source code via future potential sales.
Scott Burton, FansUnite CEO, said: “We are pleased to have reached an agreement with DragonBet, which allows them to grow and will enable us to achieve roughly $7.1m 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,” he added.
Touching on Hutchings’ departure, the CEO commented: “I would like to thank my co-founder Jeremy Hutchings for his contribution to FansUnite. He played an integral role during the early stages of the company and we look forward to watching his future success.”
Earlier this year, FansUnite disposed of McBookie to an unnamed buyer for C$4m.