Caesars Entertainment has joined the daily fantasy sports universe by adding the platform SuperDraft to the company’s interactive brands.
The casino giant said it was taking “an initial minority equity position” in SuperDraft, a privately held company based in New Hampshire that offers daily fantasy sports contests covering seven professional sports in more than 35 states.
A price wasn’t revealed, but Caesars has an option to increase its stake over time up to 100% at pre-determined levels.
SuperDraft will join Caesars’ online brands, including the World Series of Poker, Caesars Online Casino, and British sports betting giant William Hill, which the company is in the process of acquiring for $3.7 billion.
“The addition of daily fantasy sports fits seamlessly with our strategic vision for mobile and online sports,” Caesars CEO Tom Reeg said in a statement. “SuperDraft’s innovative multiplier game mode is unique in the marketplace, and we believe it offers a tremendous opportunity to strengthen our position in the sports gaming landscape.”
Caesars said the investment in daily fantasy sports “compliments” its mobile sports igaming network and strengthens its “pipeline” to customer acquisition for both the company’s traditional casinos and online gaming products.
To kick-off the arraignment, Caesars and SuperDraft will launch a $1 million tournament in conjunction with Super Bowl LV on Feb. 7th, dubbed the “Super Million Big Game contest.”
The deal was the second announced Monday between a casino company and a daily fantasy sports platform.
Bally’s Corp. said it was acquiring privately-held Monkey Knife Fight (MKF) in an all-stock transaction. Bally’s officials said the deal helps build the company’s player database as it prepares to launch a sports betting platform.
The top two daily fantasy companies, DraftKings and FanDuel, have long been at the top of the market and launched sports betting operations in 2018.
Caesars, through a separate deal, already owns 20% of William Hill US, the British sports company’s American subsidiary, which operates 12 branded sportsbooks at Caesars’ properties in Nevada, Iowa, and New Jersey.
“We’re super excited to be part of Caesars’ powerful gaming ecosystem,” SuperDraft founder and CEO Steve Wang said in a statement. “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.”
Caesars said SuperDraft will become a piece of Caesars’ mobile wallet technology, which allows customers to play both online and in-person. The company said the wallet is expected to be tied into the Caesars Rewards customer loyalty program.
Shares of Caesars, traded on the Nasdaq, closed at $78.40 Monday, down $1.13, or 1.42%.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
