Please ensure Javascript is enabled for purposes of website accessibility

Bally's Corporation's Monkey Knife Fight Acquisition Is a Major Sports Betting Push

By Rhian Hunt - Jan 25, 2021 at 1:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The casino company lines up to compete with DraftKings and Penn with the fantasy sports brand.

Taking aim at the digital sports betting sector as legalization spreads across the country, casino company Bally's Corporation (BALY -3.90%) today announced its acquisition of fantasy sports operator Monkey Knife Fight. The company says the acquisition "makes Bally's just the third sports betting company in the U.S. to have a fantasy sports segment," with a closing scheduled for this quarter.

Monkey Knife Fight is a fantasy sports gaming company that brings a mobile gaming platform and a user database in both America and Canada to the deal. The NFL and its players' association inked a partnership with Monkey Knife Fight back in October 2020, in preference over partnering with the two other major fantasy sports companies, DraftKings (DKNG -3.08%) or FanDuel, subsidiary of Flutter Entertainment (PDYP.Y -1.23%), according to U.S. Betting Report.

A football and a laptop sitting in grass.

Image source: Getty Images.

Bally's also mentions "MKF's expansive geographic presence, which spans 37 states, the District of Columbia, and Canada" as a driver behind its acquisition decision. Last July, Monkey Knife Fight said it was actively building fantasy sports user numbers in California, Florida, and Texas with the goal of converting many of those users into digital sports gamblers once legalization occurs in those states.

Monkey's CEO Bill Asher said his company is developing "a unique position in these states to run a profitable fantasy sports site, while readying ourselves for gambling," Sportico reports, a strategic plan Bally's now says it is inheriting through the acquisition.

The all-stock acquisition values Monkey Knife Fight at approximately $90 million. Bally's has also recently acquired for $125 million, giving it a ready-made sports betting app, and with television sports network Sinclair Broadcasting as other elements of its rapid push into the profitable digital sportsbook sector.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Bally's Corporation Stock Quote
Bally's Corporation
$23.90 (-3.90%) $0.97
Sinclair Broadcast Group, Inc. Stock Quote
Sinclair Broadcast Group, Inc.
$21.86 (-12.63%) $-3.16
Flutter Entertainment PLC Stock Quote
Flutter Entertainment PLC
$57.81 (-1.23%) $0.72
DraftKings Inc. Stock Quote
DraftKings Inc.
$13.51 (-3.08%) $0.43

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.