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Fanduel Acquires eSports operator AlphaDraft
Friday September 25,2015 : FANDUEL FOLLOWS DRAFTKINGS INTO eSPORTS SECTOR
Daily fantasy sports leader buys eSports platform AlphaDraft.
FanDuel, the daily fantasy sports outfit competing for leadership of the vertical with DraftKings, has announced the acquisition for an undisclosed consideration of eSports operator AlphaDraft. Get a free tournament entry here
The announcement closely follows DraftKing's earlier announcement that it was entering the eSports sector with agreements with six top eSports operators
The LA Times re-quoted Superdata research numbers revealing that eSports is now a $612-million global market with 134 million fans...and is still growing.
FanDuel and DraftKings have been leading the growth of daily fantasy sports gaming, which is expected to generate about $2.6 billion in wagers this year.
The industry is estimated to grow 41 percent annually to $14.4 billion by 2020, according to Eilers Research.
Nigel Eccles, founder and CEO of FanDuel described eSports as an enormous opportunity for his company.
“With over 200 million people globally watching eSports, AlphaDraft gives those fans a way to engage with this burgeoning entertainment product," he said. “This 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,”
DraftKings and FanDuel hold 96 percent of the DFS market, according to Eilers Research, and both have invested hundreds of millions of dollars in advertising and promotion for the vertical.
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