Caesars Entertainment has made a strategic investment in daily fantasy sports platform SuperDraft, as the operator looks to expand sports and gaming offering.
SuperDraft, Caesars explained, would complement its existing real-money betting and gambling products. This in turn would strengthen the acquisition and retention of online and brick-and-mortar customers.
The operator will initially take a minority equity position in SuperDraft, with an option to increase its stake over time until it owns the business outright.
“The addition of daily fantasy sports fits seamlessly with our strategic vision for mobile and online sports,” Caesars Entertainment chief executive Tom Reeg said.
“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.”
Launched in 2019 and based in New Hampshire, SuperDraft is currently active across seven sports in more than 35 states.
“We’re super excited to be part of Caesars’ powerful gaming ecosystem,” SuperDraft CEO and founder Steve Wang said. “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.”
The business will now form part of a stable of online brands owned by Caesars, including World Series of Poker, Caesars Online Casino, and William Hill, once the operator’s acquisition of the British operator closes.
It will be integrated with Caesars’ single wallet solution, and the operator’s Caesars Rewards program, the largest in the US market. This will allow players to accumulate credits that can be redeemed for rewards and experiences online or at Caesars properties across the US.
“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,” SuperDraft chief technology officer and co-founder Nate Hunter said.
“Now SuperDraft can adapt to the market faster than the institutional daily fantasy providers, while providing our players with unmatched prizes, loyalty rewards, and exclusive VIP opportunities.”
Following Caesars’ investment, SuperDraft will launch its first $1m tournament for Super Bowl LV, the SuperMillion Big Game contest, on February 7.
This will see its paid and free contest participants given the opportunity to win a ticket and compete for a $300,000 first place prize. Two $100,000 contests with $20,000 first place prizes on offer will also be held around the game.
Shares in Caesars Entertainment closed down 1.42% at $78.40 per share in New York yesterday (25 January).
The deal becomes the second high-profile operator’s investment in the DFS space in the past two days. Bally’s Corporation struck a deal to acquire Monkey Knife Fight yesterday, as part of its efforts to diversify its operations, and build out a vertically integrated gaming and entertainment business.