Bally's Evolution Close to Completion
Providence, Rhode Island-based Bally's Corporation is officially all-in on legal sports betting in the US. More proof of that came Monday with news that it has entered into a definitive agreement to acquire an emerging daily fantasy sports company, Monkey Knife Fight. It is said to be for up to $90 million in an all-stock transaction.
Bally's has been on an absolute tear as of late trying to bolster their brand in the exploding US sports betting market. Not only have they been expanding the retail side of their business, but their reach has exponentially grown thanks to and earlier deal to take over the Sinclair Broadcasting Group's media empire and their November acquisition of Bet.Works.
The addition of Monkey Knife Fight to their portfolio makes Bally's just the third legal sports betting provider in the country to have a Fantasy Sports wing. This allows Bally’s to continue their quest to become the first “truly vertically integrated” online betting provider in the US market.
“With this acquisition, we are pleased to enter into the high-growth (daily fantasy sports) market," said George Papanier, the company's president and CEO. "Monkey Knife Fight is a unique asset that we look forward to incorporating into Bally’s constantly growing omnichannel portfolio of land-based casinos and iGaming platforms.”
The Monkey Knife Fight Angle
Monkey Knife Fight is a relative newcomer on the fantasy sports scene. It currently sits at #3 in the "Fantasy Space" behind the two big dogs, which have each made a seamless and triumphant cross over into the legal sports betting world. MKF is an award-winning platform and the fastest-growing DFS provider in America.
"Since our inception, we have distinguished ourselves from competitors by providing the best experiences for our valued players, forming strategic partnerships with teams, ownership groups and players unions, and acquiring strategic assets to bolster our position in the market," said Bill Asher, Founder and Chief Executive Officer of Monkey Knife Fight. "I am immensely proud of all we have accomplished over the past three years at MKF and am confident that the talented Bally's team has what it takes to continue to grow and develop what is already a great business."
Monkey Knife Fight brings with them 180,000 registered users and 80,000 depositing players in 37 states, the District of Columbia and Canada. Those numbers plus MKF’s unique approach will allow Bally's to emulate a business model that has been an overwhelming success in the US market with the other two DFS giants.
Monkey Knife Fight made a name for itself earlier this year thanks to a ground-breaking partnership with the NFL Players' Association that includes licensing, joint marketing and player involvement. The company also has deals in place with some high-profile North American teams such as the NFL’s Miami Dolphins, Los Angeles Chargers and Tampa Bay Buccaneers as well as teams in other sports.
What We Can Expect from Bally's
It doesn't look as though Bally's is ready to stop the acquisition-spree, although they have filled out a good portion of the missing pieces in their portfolio as of late. What they do with a "Complete" sports betting platform is the next big challenge.
Bally's is hoping to quickly integrate Monkey Knife Fight's geographic presence in the 37 states is has a presence, Washington, D.C., and Canada, with Sinclair’s 21 regional sports networks.
It also hopes to target states that haven't gone live with their own sports betting platform just yet such as California, Texas, and Florida, to create a customer database for when those lucrative markets decide to jump on the legal sports betting gravy-train. “MKF will support our plans to develop a potential sports bettors database in states such as California, Florida, and Texas. These states are expected to account for 20-25% of US sports betting revenues,” Bally’s noted in a press release.
Monkey Knife Fight is available for play in all three of those markets presently, giving the company an instant base to draw from.
Where Bally's Stands After Their Most Recent Move
Bally's had already been a recognizable name in the US legal sports betting scene and thanks to an aggressive and rapid growth strategy, they have elevated themselves into an elite class lately.
Their deal in November to acquire the naming rights to 21 regional sports networks of the Sinclair Broadcasting Group, their move to buy sports-betting platform Bet.Works and now their move to add a DFS component to their portfolio gives Bally's a reach they could only have dreamed of a few months ago.
Papanier said of the deal “The MKF acquisition will allow Bally's to leverage both its current customer database as well as DFS's collection of depositing players. These assets will also provide Bally's with a significant advantage in launching its own B2C sports betting operations."
The deal is expected to close in the first quarter of 2021.
