Caesars Boosts Sports Betting Tech with ZeroFlucs Acquisition
Caesars Entertainment (NASDAQ: CZR) announced today that it is purchasing ZeroFlucs Group Pty Ltd in an effort to strengthen its sportsbook technology.
The software vendor is located in Australia, and its technologies enable sportsbook operators to effectively adjust pricing and odds while preserving current data links. The transaction's financial details were kept a secret.
The ZeroFlucs acquisition follows a successful integration of ZeroFlucs’ technology into the Caesars Sportsbook platform through a commercial arrangement that enabled the recent launch of new products, such as in-play same-game parlays (SGPs) and a vastly improved menu of ‘SGP-eligible’ markets for Major League Baseball,” according to a statement.
Although the buyer mentioned that Carly Christensen will join Caesars Digital as senior vice president of price technology, Steve Gray and Christensen will continue to lead ZeroFlucs, Caesars did not specify when the deal will close.
Sportsbook Technology Race Is Heating Up
The Caesars acquisition of ZeroFlucs is the most recent example of the competition for sports betting technology getting fiercer.
The deal was revealed less than two weeks after MGM Resorts International (NYSE: MGM) declared that its LeoVegas division will pay an undisclosed amount to acquire Tipico Group's US iGaming and sportsbook operations. Market watchers believe this acquisition is mostly driven by technology.
Building up tech stacks becomes a crucial goal because many bettors who are drawn in by these long odds wagers will base their bet placement decisions on the tech that sportsbook operators are offering. Live betting and SGPs are major ways for sportsbook operators to boost hold and profits.
In reference to ZeroFlucs, Caesars Sportsbook stated in the news release that "the acquisition cements a relationship between the companies that has already improved the customer experience and will continue to unlock exciting new product features and benefits for bettor."
The Benefits of ZeroFlucs for Caesars
As technology continues to permeate the sports betting industry, speed plays a crucial role in expanding the selection of live wagers that sportsbook operators can provide to players.
Play-by-play changes in in-game odds can occur in almost all major team sports – a touchdown, a home run, etc. Slow technology may make it necessary for operators to only update the odds when there are pauses in the action, but astute bettors are aware that they may not be receiving the best odds.
With regard to ZeroFlucs and Caesars specifically, the acquired company's expertise in baseball SGPs may be alluring because the sport's languid tempo lends itself well to SGPs and live wagering. Gaming businesses are aware of this, and with improved technology, it's feasible that they will encourage more bets on baseball, a sport that is far less popular than basketball and football.
