American daily fantasy sports contest and sports betting operator DraftKings has announced the successful completion of the BlueRibbon Software acquisition.
Based in Tel Aviv, Israel, BlueRibbon provides global jackpot and gamification services to operators, which use them to promote their jackpots. The two sides haven’t disclosed detailed information on the latest deal.
BlueRibbon has been in the business of creating jackpot technology since 2017. Its products are used a wide variety of gaming concepts, including the two most important competencies of DraftKings operation, online casinos and sports betting.
Commenting on the latest acquisition, its second in a week, the gaming company said the move would allow it to further enhance the customer experience through the integration of the unique jackpot functionality provided by BlueRibbon. DraftKings explained that its customers would be able to benefit from personalized promotions, tailor-made rewards, and jackpots paid out across the operator’s extensive lineup of products.
The statement released by the Boston-headquartered company didn’t say whether the acquisition of BlueRibbon would cause the appreciation in earnings per share.
Diversifying the Offer
In March, the daily fantasy sports and sports betting operators announced it would sell $1.15 billion worth of convertible debt. It also mentioned a portion of this sum would be used for new acquisitions.
And it had been. Last week, DraftKings bought Vegas Sports Information Network (VSiN) in a deal aimed at strengthening the company content platform. A week later, the gaming giant finalizes yet another acquisition that will undoubtedly bolster its already strong market positions. DraftKings has pointed out its efforts to pursue vertical integration. This means the company should become able to fill in all of its business need in-house, minimizing the costs that come when working with third-party vendors and suppliers.
Vertical integration is a strategy where a company has full control over its suppliers, distributors, and retail locations. Using such an approach allows a business to have complete control of its supply chain, control processes, cut down its expenses, and, most importantly, significantly boost its efficiency.
Since the US online gaming and sports betting market is still developing, it remains to be seen if this strategy will spread throughout the country’s industry. Acquisitions are undoubtedly the best way to achieve that goal.
Working with Israeli Companies
BlueRibbon is not the first side from Israel to be involved with DraftKings.
SB Tech was part of the reverse merger that allowed DraftKings to go public in April last year. Shalom McKenzie, the founder of the provider, is now on the DraftKings board and one of the American giant’s largest shareholders. SBTech is one of the leading providers of sports betting data and offers its services to operators around the world.
Following the acquisition of BlueRibbon, DraftKings plans to hire new staff in its office in Tel Aviv.
Founded in 2012, DraftKings is today the leading daily fantasy sports contest and sports betting operator in the US. The company was established by Jason Robins, Paul Liberman, and Matthew Kalish, who worked together at Vistaprint.