Sportech & Viggle Inc form DraftDay Gaming via strategic acquisition

DraftdayIn a joint partnership targeting the growing US daily fantasy sports market, gambling technology provider Sportech and marketing rewards platform Viggle Inc have teamed up to acquire MGT Capital Investments DraftDay product.

The acquisition will see Sportech and Viggle combine operations and resources to create DraftDay Gaming Group.

Sportech provider of betting and racing systems, views the joint partnership and acquisition as key to expanding its operations and services with the US market. Viggle’s expertise in US marketing and rewards will be utilised as DraftDay looks to compete against high spending competitors FanDuel and DraftKings.

Detailing further insight on its acquired asset, Sportech noted that DraftDay had paid out $30 million in player prizes to date.

“DraftDay holds the potential to quickly disrupt the daily fantasy sports business with B2B partnerships including new ventures with companies within the regulated gaming industry,” said President of Sportech’s digital division, Rich Roberts.

“Integrating DraftDay games within the Viggle app introduces significant potential to expand the user audience of U.S. sports fans while creating more visibility for DraftDay which we expect will continue to build in the months and years ahead.”

Commenting on the rationale leading into the deal, John Small, Chief Financial Officer of Viggle, said,

“The combination of the DraftDay platform plus Sportech’s gaming experience logically aligns with our avid existing base of Viggle App sport fans. The merged assets of DraftDay Gaming Group create a compelling win-win for both sports enthusiasts and the advertisers aiming to reach this demographic in a very targeted way designed to build brand loyalty. We expect our investment in DraftDay to provide a new revenue source, as Viggle users and advertisers now have even more reasons to continue enjoying what the Viggle app has to offer.”

 

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