Caesars Entertainment (NASDAQ: CZR), the casino company formed from the merger of Eldorado Resorts Inc. and the original Caesars, announced today that it is making a “strategic investment” in SuperDraft Inc., a fantasy sports platform. The shift comes at a time when several companies are looking to strengthen their presence in the online sports betting industry, which grew rapidly in 2020 and continues to strengthen as other states legalize this form of gambling.
Neither party revealed how much Caesars paid for its investment, but it has currently purchased a minority stake in SuperDraft. The terms of the agreement allow Caesars to buy a larger stake in the company if it decides to do so. This can be up to 100% participation or total ownership. The exact schedule involved was also not made public.
Image source: Caesars Entertainment.
Caesars CEO Tom Reeg commented that “the addition of daily fantasy sports fits perfectly into our strategic vision for mobile and online sports” and that the bet will give your company access to a popular platform, enabling the formation of fantasy teams more flexible. Integration will take place in both directions, with SuperDraft users receiving credits on Caesars Rewards and using the Caesars wallet as well.
Caesars may also be looking at SuperDraft as another potential way to build its presence in the world of online sports betting. SuperDraft’s strong presence in 35 states can be useful to quickly get into digital sports gambling there once legalization takes place. Bally’s Corporation (NYSE: BALY) is getting involved in a similar initiative with the acquisition of the fantasy sports platform Monkey Knife Fight. Bally will profit from the fantasy sports service itself and will have immediate entry into the high-population states of Florida, California and Texas, once they eventually legalize online sports betting.