Affiliate marketing giant Better Collective has purchased a 19.99% stake in gambling intelligence software solutions provider Mindway AI for DKK4m (£471,688/€535,718/$592,728).
Better Collective, which has also provided a loan of DKK4m to Mindway AI, will have the option to acquire the remaining shares at a price of DKK20m, based on certain performance-based conditions.
A spin-off by scientists at the Institute for Clinical Medicine at Aarhus University in Denmark, Mindway AI specialises in software that can help to identify at-risk gambling and problem gambling behaviour among online bettors.
Mindway AI bases its platform on both neuroscience and artificial intelligence, working with a number of betting operators, platform providers, regulators and governments.
The acquisition agreement will see Mindway AI run as a stand-alone business within the Better Collective Group, as the business and products are not directly related to the core business. However, Better Collective will also be represented on the board of directors in Mindway AI.
“We take our social responsibility very seriously and see this innovative technology as a perfect way to help protect online sports bettors, while at the same time engaging in a business where we foresee a sound future growth and profitability,” Better Collective chief executive Jesper Søgaard said.
“The great team at Mindway AI has impressed us with their deep and specialised knowledge in combining artificial intelligence with true neuroscience into what we believe is the most promising product offering for the management of problem gambling, which currently is on the top of the agenda in our industry.”
Svend Aage Kirk, chief executive of Mindway AI, added: “In Better Collective, we have found a strong partner that shares our core values and vision to create a transparent and safe online betting experience.
“Partnering with the leading sports betting affiliate in the world, we can scale our technology globally. We see this as a win-win opportunity where both parties can enhance the protection for online bettors, while also strengthening our position in the market.”
The deal comes after Better Collective last week sold 140,000 of its own shares to Mateusz and Zbigniew Juroszek, the owners of Polish bookmaker STS Gaming Group.
This week, Better Collective also entered into a major new strategic commercial partnership with leading UK national newspaper The Daily Telegraph.