Caesars Entertainment Inc. is diversifying its online offerings by teaming up with daily sports fantasy platform SuperDraft Inc.
The investment adds SuperDraft to Caesars’ mobile gaming network and gives Caesars an initial minority equity position with the option to increase its stake up to 100 percent over time. The deal should help the Caesars acquire and retain customers in both the online and brick and mortar space, according to a Monday news release.
“The addition of daily fantasy sports fits seamlessly with our strategic vision for mobile and online sports,” Caesars CEO Tom Reeg said in the statement.
New Hampshire-based SuperDraft operates across seven professional sports in more than 35 states. Reeg said the platform’s “multiplier game mode,” which replaces the traditional fantasy team salary cap with a multiplier that allows for more flexible team building, is a unique offering that gives Caesars a “tremendous opportunity” to strengthen its position in the sports gaming landscape.
The brand will become part of Caesars’ single wallet solution, which allows members more options to play both online and in-person, and is expected to be tied to the Caesars Rewards program. It joins Caesars’ other online brands: World Series of Poker, Caesars Online Casino and — upon acquisition — William Hill.
“We’re super excited to be part of Caesars’ powerful gaming ecosystem,” said SuperDraft CEO Steve Wang. “Daily fantasy players deserve a breath of fresh air, and we’re here to transform the industry. SuperDraft is now well-positioned to accelerate its growth with financial staying power while broadening its consumer appeal with bigger contests and better rewards to players of all interest levels.”
SuperDraft is set to launch its first $1 million tournament on Feb. 7, Super Bowl Sunday. Paid and free entry contests will be offered daily, starting Monday, to give players a chance to win a ticket and compete for a $300,000 first place prize. Two $100,000 contests with $20,000 first place prizes will also take place on Feb. 7.
Bally’s fantasy sports acquisition
This isn’t Caesars’ first move in the daily fantasy space; the company purchased a stake in DraftKings in 2019.
Caesars’ announcement was the second daily fantasy purchase to come out Monday.
Rhode Island-based Bally’s Corp. — formerly Twin River Worldwide Holdings Inc. — said it had entered into a definitive agreement to acquire Monkey Knife Fight, another North American daily fantasy sports operator. The all-stock transaction is the latest step in Bally’s strategy to become a vertically integrated sports betting and iGaming company, according to a news release.
Union Gaming analyst John DeCree said the deal is valued at $90 million.
Caesars shares closed down 1.4 percent Monday afternoon, trading at $78.40 on the Nasdaq. Bally’s shares closed up 4.2 percent to $55.50 on the New York Stock Exchange.