The US casino operator Bally’s Corporation has completed its acquisition of the daily fantasy sports (DFS) company Monkey Knife Fight.
Monkey Knife Fight is the third-largest DFS operator in North America with 180,000 registered users and 80,000 actively depositing players.
Bally’s acquisition of Monkey Knife Fight
The deal, which was announced in January, would see Bally’s become the third US betting operator in the US to have a daily fantasy sports operation.
In the initial announcement, Bally’s explained that the DFS provider is currently active in 37 states and the acquisition will allow the casino operator to establish a presence in states where sports betting has yet to be legalised.
Under the agreement, Monkey Knife Fight would receive immediately exercisable penny warrants to purchase approximately $50m in Bally’s common shares at closing.
The DFS company will also receive contingent penny warrants to purchase up to approximately $20m in additional shares on the first and second anniversaries of the deal closing for a total of up to $40m.
George Papanier, President and Chief Executive Officer of Bally’s Corporation, said, “We are pleased to have closed on our acquisition of Monkey Knife Fight, and are now focused on integrating this unique asset into our Bally’s Interactive division.
“Entering the daily fantasy sports market is an integral component of our omnichannel approach and an important milestone for our Company as we continue our long-term diversification strategy. We look forward to providing sports fans across the nation with a dynamic and engaging DFS platform that is commensurate with the premier offerings that define the Bally’s portfolio.”
What else is Bally’s up to?
With the acquisition of Monkey Knife Fight now complete, Bally’s can return its attention to the several other business opportunities it is pursuing.
The US casino operator is one of several other gambling businesses competing for the opportunity to open a new casino resort in Richmond, Virginia. Bally’s proposal would see the construction of a $650m casino resort.
Earlier this month, Bally’s launched a new campaign to help raise support for its casino proposal in Virginia. The campaign, “Bally’s for RVA” will highlight that the project would create 4,300 construction jobs, 2,000 permanent jobs upon completion and the resort could attract up to 3.7m visitors a year.
In February, Bally’s also announced a deal to acquire the free-to-play games provider SportCaller.
The deal will see Bally’s acquire SportCaller which supplies trivia, predictions, pay-to-play and custom free-to-play content to a range of media businesses and sportsbook operators around the globe.
Once the acquisition is complete, SportCaller will make up part of Bally’s interactive division, which was formed after the casino operator acquired Bet.Works in November last year.
Bally’s plans to launch its own line of free-to-play games later this year which will be supported by Bet.Works’ technology stack.
The operator will also use its partnership with Sinclair Broadcast Group to grow its payer database in states where sports betting has yet to be legalised.