Casino companies are moving beyond acquiring stakes in sportsbooks. They’ve set their sights on daily fantasy sports.
To that end, Bally’s Corp. purchased privately-held Monkey Knife Fight, in an all-stock deal worth $90 million. For the Rhode Island-based gaming company, the acquisition adds another element in a push to increase its assortment of casino and online sports betting avenues.
Bally’s becomes the third U.S. company to have a daily fantasy sports component, along with DraftKings and FanDuel. But the latter two control 85 percent of the market.
“We are pleased to enter into the high-growth (daily fantasy sports) market,” said George Papanier, Bally’s president and CEO. “Monkey Knife Fight is a unique asset that we look forward to incorporating into Bally’s constantly growing omnichannel portfolio of land-based casinos and iGaming platforms. The acquisition will lead to Bally’s developing new and engaging content with MKF for its customers.”
Monkey Knife Fight, which also offers e-sports, operates in 37 states, with 180,000 registered users and 80,000 depositors. The firm, the official partner of the NFL Players Association, will support Bally’s plans to develop a potential customer database in states with no sports betting yet such as California, Florida and Texas, as well as in Canada. SponsorUnited ranked MKF the sixth most-searched and 10th fastest-growing brand in sports and entertainment.
MKF founder and CEO Bill Asher said the company has grown through “strategic partnerships with teams, ownership groups, and players unions.”
The deal is expected to close in the first quarter of 2021.
Monkey Knife expects to produce $30 million in annual revenue for Bally’s.
In other Bally’s news, the company has partnered with Sinclair Broadcast Group Inc., a move that would combine Bally’s sports betting technology with Sinclair’s footprint, including 188 local broadcast stations, 19 owned and operated RSNs, STIRR, Tennis Channel and Stadium.
The deal replaces Fox on Sinclair’s 21 regional sports networks.
Truist Securities gaming analyst Barry Jonas told investors the transaction expands Bally’s portfolio but also helps the Sinclair deal by offering daily fantasy “into markets where sports betting isn’t yet legal and or Bally’s doesn’t currently have a presence.”
As part of the process, Sinclair and Bally’s Corp. revealed the new Bally Sports logo and Bally Sports regional monikers. The Bally logos will replace the existing FOX Sports regional logos when the networks officially rebrand in the coming months.
“We are extremely proud to unveil the Bally Sports logo as it signifies a new, transformative chapter in the regional sports business and is representative of our cohesive partnership with Bally’s,” said Steve Rosenberg, president of local sports for Sinclair.
The Bally’s Sports logo features the iconic red Bally’s script atop a red sports typography. The logo also serves as the foundation for the RSN logos by positioning the global logo above a prominent red banner with the corresponding geographic name overlaid in white.
“We look forward to integrating Bally’s unique content, including the award-winning daily fantasy sports platform we are acquiring from Monkey Knife Fight, across Sinclair’s live game day coverage and providing unrivaled sports gamification on a national scale,” Papanier said.
As part of the rebrand, Prime Ticket becomes Bally Sports SoCal, and Sports Time Ohio becomes Bally Sports Great Lakes.
Caesars Entertainment, Inc. also invested in the daily fantasy sports platform, In this case, SuperDraft, Inc. The deal assists Caesars’ mobile sports and gaming network’s effort to strengthen its customer acquisition and retention for both online and retail. SuperDraft compliments Caesars mobile sports betting network and increases access to customers for traditional casinos and online offerings, according to CDC Gaming Reports.
The investment gives Caesars a minority equity position but one with an option to increase its stake over time up to 100 percent. At the same time, the partnership elevates SuperDraft’s standing in the daily fantasy sports industry.
“The addition of daily fantasy sports fits seamlessly with our strategic vision for mobile and online sports,” said Tom Reeg, CEO of Caesars Entertainment, Inc. “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.”
SuperDraft has a presence in 35 states with 7 professional sports appealing to casual and experienced players. The company will become part of Caesars’ online brands such as World Series of Poker, Caesars Online Casino, and, soon, William Hill, according to CDC Gaming Reports.
“We’re super excited to be part of Caesars’ powerful gaming ecosystem,” said Steve Wang, CEO and founder of SuperDraft Inc. “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.”
To celebrate, SuperDraft will inaugurate a $1 million tournament on February 7, Super Bowl Sunday. Each day, both free and paid players will have the opportunity to collect a winning ticket and compete for $300,000, $100,000 and $20,000.
SuperDraft expects to be tied to the Caesars Rewards program that will permit players to credits redeemable for rewards and experiences online or at one of Caesars casino resorts nationwide.
“Caesars is a strong strategic partner that will allow us to further enhance our industry-leading tech stack and provide an enhanced player-first experience,” said Nate Hunter, SuperDraft CTO and Co-Founder.
