Caesars Entertainment (NASDAQ: CZR), the casino business that emerged 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 move comes as several businesses want to bolster their presence in the online sports betting sector, which grew rapidly in 2020 and continues to bolster as additional states legalize this form of gambling.
Neither party has disclosed how much Caesars paid for its investment, but has currently bought 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. It can be a 100% stake, or a full ownership. The exact timetable has also not yet been made public.
Image Source: Caesars Entertainment.
Caesars CEO Tom Reeg noted that the “addition of daily fantasy sports seamlessly fits in with our strategic vision for mobile and online sports” and that the stake will give his company access to a popular platform, which is more flexible make fantasy team building possible. The integration goes from both sides, with SuperDraft users receiving credits under Caesars Rewards and also using the Caesars wallet.
Caesars may also consider SuperDraft as another possible way to expand its presence in the online sports betting world. SuperDraft’s strong presence in 35 states could be useful to quickly enter digital sports gambling there once legalization takes place. Bally’s Corporation (NYSE: BALY) is embarking on a similar initiative with the acquisition of the fantasy sports platform Monkey Knife Fight. Bally will benefit from the fantasy sports service itself and gain immediate access to the high population states of Florida, California and Texas once they finally legalize online sports books.