Payment technology and mobile marketing provider, SinglePoint, has continued their expansion into the daily fantasy sports (DFS) market with the acquisition of their second DFS operator. Earlier this year, SinglePoint acquired GoDraft.com and they have now acquired DraftFury using a company valuation of $8 million.
SinglePoint is planning to make a noticeable footprint in the fast-growing DFS industry. According to Todd Eilers, chief executive of Eilers Research, “daily games generated around $2.6 billion in entry fees last year and grow 41 percent annually, reaching $14.4 billion in 2020.”
This acquisition by SinglePoint fits in well with their overall acquisition strategy according to executives in the company. A number of other deals are being negotiated.
DraftFury is a DFS operator that uses skill-based daily fantasy contests for the National Basketball Association, National Football League and Major League Baseball. It is widely accepted to be the first positive cash flow DFS company and is recognised for its originality and innovation among other platforms. In particular, it is praised for its unique features such as Fury Arena which uses an algorithm to match players of similar skill levels, allowing all players, even those who are casual players, to have a chance of winning.
“This is a great company with great management and a unique seven-level referral program and an optimised interface which provides a superior gaming experience for users,” stated chief executive of SinglePoint, Greg Lambrecht.
“I am confident this will play an integral role in building shareholder value in the near term and invaluable relationships for the long term. We feel DraftFury is going to be worth a lot of money.”
“As well, SinglePoint is the only publicly traded company in the US markets I’m aware of that allows shareholders to be involved in the DFS realm.”