FanDuel acquires eSports operator AlphaDraft
Top-two DFS operator strikes deal to acquire AlphaDraft as it looks to get a foothold in the eSports sector
Daily fantasy sports (DFS) operator FanDuel has followed fierce market rival DraftKings into the world of fantasy eSports with the acquisition of AlphaDraft. [private]
The acquisition allows FanDuel to instantly enter the world of eSports and compete with DraftKings, which announced plans to offer fantasy contests on League of Legends (LoL) earlier this week.
âWith over 200 million people globally watching eSports, AlphaDraft gives those fans a way to engage with this burgeoning entertainment product that creates an enormous opportunity for us,â FanDuel CEO Nigel Eccles, said.
âThis is sports for a new demographic, with very little crossover with what are considered traditional sports fans, and this acquisition gives us the ability to leverage the expertise of AlphaDraft’s team, while helping their efforts in customer acquisition and building awareness of this new industry. It’s a win-win,â he added.
The deal marks FanDuelâs third acquisition this year after taking over mobile app developer Kotikan and sports analytics company numberFire.
AlphaDraft is one of two daily fantasy eSports operators in the market along with Vulcun, offering contests on games such as LoL, Dota 2 and Counter Strike: Global Offensive.
Meanwhile other operators such as Unikrn, Pinnacle Sports and Betway have begun offering real-money and social casino wagers on eSports contests.
The sector has enjoyed impressive growth of late, with Eilers Research estimating that more than $295m will be wagered on eSports contests this year alone.