In an effort to bolster its sports betting platform and expand its menu of options, Caesars recently announced the acquisition of ZeroFlucs, an Australian-based developer that specializes in price offerings and other enhanced features for sports betting customers.
Welcome to Caesars
Improving performance is a staple among sports betting platforms and Caesars believes it did just that after its acquisition of ZeroFlucs, a sports betting technology company whose software will be integrated into Caesars’ existing platform. Although the financial terms were not revealed, Caesars did announce that its addition will “unlock exciting new product features and benefits for Caesars Sportsbook bettors.”
“We are excited to welcome the talented ZeroFlucs team into the Caesars family,” said Eric Hession, President of Caesars Digital. “Their expertise in data science and trading technology coupled with their passion for sports makes them a perfect fit with our team as we drive to offer our customers the best sports betting product that complements our award-winning Caesars Rewards program.”
Caesars customers will experience an enhanced version of its same-game parlays that will add more offerings to the current menu. Parlays are a cash cow for sportsbooks, which is why many of the bonus offerings include odds boosts for those wagers. Same-game parlays can be particularly lucrative but correlated parlays are often prohibited due to their higher win expectancy rate.
Steve Gray, ZeroFlucs’ Founder, and Chief Executive Officer, who joins Caesars Digital as Senior Vice President of Pricing Initiatives, stated, “We are thrilled to be joining forces with the team at Caesars and can’t imagine a better home for our people or a platform for our product to shine on. Our team has always been passionate about being at the forefront of what’s possible in sports betting, and with the resources and reach of Caesars, we can now focus on taking these experiences to the next level.”
Caesars Seeks Tier 2 Status
FanDuel and DraftKings are the two undisputed leaders of the mobile sports betting industry in the United States. The two were responsible for 72% of the market share in 2023 and there is no close second nipping at their heels. The primary reason for their No. 1 tier status was their arrival to the daily fantasy sports (DFS) market before states were permitted to license sports betting after the U.S. Supreme Court overturned PASPA in 2018, paving the way for the wildly successful sports betting market we see today.
A blizzard of DFS advertising by both companies ingrained their brands into the mainstream, which meant both were poised to leverage their popularity in the parallel sports betting market. All the other mobile sportsbooks arrived with their own identities, but they were not nearly as recognizable to America’s sports betting public, many of whom are a younger audience that are prone to also be DFS customers.
Barry Jonas of Trust Securities said, “Note that we skipped ‘tier two’ – we don’t think any operator in the space qualifies for that standing with white space between DKNG/FanDuel and others.”
Whether any of these three brands can break free and gain enough market share to be considered a Tier 2 industry player is unknown. However, technological advancements and enhanced user experiences via assistance from companies like ZeroFlucs can only help the cause.
