Gambling.com Group Acquires Odds Holdings
CHARLOTTE, N.C.–(BUSINESS WIRE) – Gambling.com Group, Inc. (Nasdaq: GAMB) (“Gambling.com Group” or the “Company”), a rapidly expanding provider of digital marketing solutions for the global online gambling sector, has announced today that it has entered into a definitive agreement to acquire Odds Holdings, Inc., the parent entity of OddsJam.
According to the terms of the agreement, shareholders of Odds Holdings will receive an initial payment of $80 million, with the potential for an additional $80 million contingent upon the business performance of Odds Holdings through the conclusion of 2026. This acquisition by Gambling.com Group enhances the Company’s presence in the online gambling market, contributing complementary recurring revenue from both new and existing users and partners.
Gambling.com Group Acquires Odds Holdings in a Deal that Could be Worth $160 Million
The anticipated closing date is January 1, 2025, contingent upon standard closing conditions. Upon completion of the transaction, it is expected to have an immediate positive impact on Gambling.com Group’s operating results. For the year 2024, Odds Holdings projects revenues and Adjusted EBITDA(1) of approximately $26 million and $12 million, respectively.
The transaction is poised to enhance Gambling.com Group’s presence in the online gambling sector. Furthermore, it will introduce new recurring revenue streams from both consumer and enterprise clients. It is expected to positively impact the company’s operating results immediately upon completion. The organization has shown robust execution capabilities, with a revenue increase of 27.6% over the past year, reaching $124.4 million.
Odds Holdings is anticipated to generate around $26 million in revenue and $12 million in Adjusted EBITDA. Gambling.com Group expects to achieve at least a 20% increase in Adjusted EBITDA from the Odds Holdings assets by 2025.
The Odds Holdings team, which includes founders Ankit Goyal and Alex Monahan, along with CEO Matt Restivo, will become part of Gambling.com Group. The initial purchase consideration will consist of $70 million in cash and $10 million in ordinary shares of Gambling.com Group. The cash component will be financed through borrowings from the company’s expanded credit facility. It includes a commitment from Wells Fargo Bank for a senior secured term loan and a revolving credit facility of at least $100 million.
This strategic initiative aligns with Gambling.com Group’s objective of achieving $100 million in annual Adjusted EBITDA. Furthermore, it is in line with their strategy to expand their footprint in the online gambling industry. The acquisition is subject to standard closing conditions. With a current market capitalization of $465 million and a “GREAT” financial health score, the company appears well-equipped to undertake this strategic acquisition.
About Odds Holdings
Odds Holdings operates on a cutting-edge technology platform that provides real-time odds data and offers services across various consumer and enterprise brands. Gambling.com Group is confident that this odds platform is the most sophisticated in the industry, delivering data to end-users with minimal latency. The platform is designed for scalability, handling an average of over one million requests per second and processing multiple terabytes of data daily across nearly 300 sportsbooks. Furthermore, they also provide their sports betting data to other gambling entities from Handicapping websites to pay per head sportsbooks.
About OddsJam
OddsJam serves as the flagship brand, providing premium, real-time odds information that enables sports bettors to make informed, data-driven decisions through a consumer-facing website and application. Additionally, Odds Holdings, managed separately, supplies low-latency, comprehensive odds data to enterprise clients for a range of sports betting applications.
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