DFS industry sees major distribution deal
Global Daily Fantasy Sports Inc. has entered into a strategic partnership alongside NYX Digital Gaming.
Canada.- Global Daily Fantasy Sports Inc. and NYX Digital Gaming have entered into a strategic partnership. NYX Digital Gaming, a subsidiary of NYX Gaming Group Limited, will receive US$500,000 (€449,000) plus a monthly royalty in exchange to distribute Global Daily Fantasy Sports’ business-to-business daily fantasy sports product. Both gaming companies are listed on Canada’s TSX Venture Exchange.
This major deal is a positive sign for the daily fantasy sports (DFS) industry, which has grown at a rapid pace and was infused with more than US$1 billion (€900 million) of investments. The industry has also encountered obstacles, like legal battles against many U.S. state attorneys general as well as legislators whom question the legality of DFS operations.
What makes this transaction even more impressive is the fact that Global Daily Fantasy Sports is not just another FanDuel or DraftKings. Instead, it is a mobile and desktop enabled platform that allows for seamless integration at the operator level. Global Daily Fantasy Sports’ concept revolves around Global Daily Fantasy Sports working with sportsbook operators, land based operators, media groups and large database companies to offer them new revenue earning opportunities through DFS.
As per the agreement, Global Daily Fantasy Sports will be able to exploit NYX’s Open Gaming System (OGS), which has partnered with more than two hundred gaming operators, lotteries and casinos around the world to deliver gaming content. An efficient distribution is important as NYX can push a DFS product to partners that have already integrated OGS and begin offering the service as soon as they are ready to implement such games. NYX’s partnership with Global Daily Fantasy Sports requires it to offer and promote the DFS product as its only solution in the space as well as using its sales and marketing teams to maximise commercial exploitation.
Until now, NYX has focused on pushing out games such as bingo, casino, lottery and sportsbooks. Gambling operators as important as Bet365, William Hill, Paddy Power, Betfair, SkyBet and Coral all rely on NYX to deliver content, reaching up to 35 million online players combined. These firms should enable Global Daily Fantasy Sports to quickly improve its footprint in Europe, which is a priority for Global Daily Fantasy Sports at this point.
