Bally’s Corporation Agrees to All-Stock Acquisition of MKF

Casino and interactive entertainment company Bally’s Corporation is entering the world of daily fantasy sports (DFS), having signed today a definitive agreement to acquire the third largest and fastest growing DFS operator in North America Monkey Knife Fight (MKF).

Entering the DFS Market

Bally’s would acquire the DFS platform which offers a mixture of daily sports and e-sports contests in an all-stock transaction, to reiterate the company’s resolve to continue with its diversification strategy seeking to become the first vertically integrated sports betting and online gaming company in the US.

“With this acquisition, we are pleased to enter into the high-growth DFS market. Monkey Knife Fight is a unique asset that we look forward to incorporating into Bally’s constantly growing omnichannel portfolio of land-based casinos and iGaming platforms.”

George Papanier, President and CEO, Bally’s Corporation

Upon completion of the transaction, Bally’s would become the third sports betting company in North America which would also offer daily fantasy sports, and, as with all of its properties and services under the brand, the company is committed to provide the best-in-class experience to sports fans nationwide, Bally’s CEO Papanier outlined.

“Since our inception, we have distinguished ourselves from competitors by providing the best experiences for our valued players, forming strategic partnerships with teams, ownership groups and players unions, and acquiring strategic assets to bolster our position in the market.”

Bill Asher, Founder and CEO, Monkey Knife Fight

Under the deal, which is expected to close in the first quarter of 2021 subject to customary closing conditions, MKF would receive immediately exercisable penny warrants for up to $50 million in Bally’s common stock at closing, as well as contingent penny warrants for approximately $20 million in Bally’s common shares on each of the first and second anniversaries of closing, totaling $40 million.

Diversification Efforts Continue

The deal to acquire the assets of MKF continues in the direction Bally’s set with the partnership deal signed with Sinclair Broadcast Group, a deal touted as having the potential to revolutionize the world of sports betting, and then affirmed with the acquisition of technology provider company Bet.Works, still pending completion.

MKF’s expansive customer database featuring approximately 180,000 users and 80,000 depositing players spread across 37 US states, the District of Columbia and Canada would support Bally’s intent to create sports bettor databases in California, Florida and Texas, while MKF’s presence in Canada would give Bally’s with a tool to build a customer database in the country where a legal move to expand sports betting is underway.

The acquisition of MKF and its user-friendly gaming platform is also giving Bally’s the opportunities to utilize Sinclair’s media footprint of 21 regional sports networks and reach to sports fans across the country by providing them with excellent DFS products. It would also boost Bally’s capabilities to develop new gaming content for its customers.