Caesars Acquires Minority Stake in DFS Provider SuperDraft

Caesars Entertainment Logo And Caesars Palace With Superdraft And William Hill Logos

  • Caesars has acquired a minority stake in SuperDraft, a relatively new DFS provider
  • Caesars is also on the verge of completing its $3.7 billion purchase of UK-based bookmaker William Hill
  • Caesars’ stake in SuperDraft can rise as high as 100 percent in the years to come

The world of daily fantasy sports has thrived over the past decade or so. Companies like DraftKings and FanDuel have quickly risen to the top thanks in large part to a lack of quality competition. Both companies have since made a foray into sports betting, where they have become household names since the US Supreme Court’s landmark 2018 decision.

Caesars has kept its focus on sports betting over the years, but the company has finally decided to enter the DFS game. On Monday, Caesars Entertainment Corp. announced that it has decided to invest in SuperDraft, a private DFS operator out of New Hampshire.

Caesars is the largest gambling operator in the US, so this investment is no small decision. Caesars says it will take an “initial minority equity position” within SuperDraft. Caesars has the option to increase its stake over time, even up to 100 percent if it so chooses.

With this move, Caesars is clearly indicating that the company has plans to expand its reach within both the sports betting and DFS industries, which have become intertwined over the past couple of years. In a press release, Caesars said, “The investment complements Caesars’ strong mobile sports and gaming network by adding an innovative fantasy sports platform, further strengthening its pipeline to customer acquisition and retention for both online and brick-and-mortar.”

Caesars will add SuperDraft to an online brand portfolio that already included Caesars Online Casino and the World Series of Poker.

William Hill Deal Moving Forward

However, it isn’t stopping with its investment in SuperDraft. Caesars is also reportedly on the verge of acquiring the entirety of UK-based bookmaker William Hill. Caesars already owns about 20 percent of William Hill US.

Last month, Caesars received clearance to move forward with its $3.7 billion acquisition of William Hill. The move was initially announced in October, pending regulatory review. The deal is expected to close at some point in March.

SuperDraft’s Meteoric Rise

SuperDraft is far younger than DraftKings, FanDuel, and other leading DFS providers. The company launched in 2019, and it has since launched operations in 35 states. The site offers contests across seven different professional sports leagues, including the NFL, NBA, and Major League Baseball.

Caesars and SuperDraft have announced a $1 million tournament that will take place on Super Bowl Sunday called the “Super Million Big Game contest” to celebrate their new partnership. Caesars CEO Tom Reeg added that SuperDraft “fits seamlessly with our strategic vision for mobile and online sports.”

SuperDraft CEO 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.” Wang added that SuperDraft is “excited” to be joining forces with Caesars.

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