lobal Daily Fantasy Sports, Inc. calls itself the first true business-to-business global daily fantasy sports network -- dissimilar to FanDuel and DraftKings -- that offers a turn-key solution for sportsbook operators, land-based operators, media groups and big database companies to participate in the daily fantasy sports industry.
In August 2016, it announced the closing of a USD 6M private placement, issuing USD 15M units at a price of $0.40 per unit. That capital was likely instrumental in closing a deal with Mondogoal.
Global Daily Fantasy Sports, Inc. was particularly attracted to Mondogoal's business-to-business operations in Italy, where its client base includes Lottomatica Scommesse S.r.l. (Lottomatica) and Sisal Entertainment S.p.a. (Sisal), which are two of the largest gaming brands in the country. Both Lottomatica and Sisal in 2016 represented 14% of the Italian online sports betting market, according to Global Daily Fantasy Sports, Inc.
"The acquisition of the Mondogoal operating assets and new agreements with Lottomatica and Sisal position us well to grow our business in one of our key European markets," states Darcy Krogh CEO of Global Daily Fantasy Sports, Inc. "Italy is one of the largest online gaming markets in Europe and one of the first to establish itself in the daily fantasy space. This is a strategic investment for Global and we look forward to working with Lottomatica and Sisal to build out a strong network in Italy with our innovative platform."
Mondogoal was not always a strictly business-to-business operation. However, in December 2016, it decided to end its consumer-facing platform and pivot to a business-to-business model.
Mondogoal CEO Shergul Arshad stated that the business-to-business path made far more sense in Europe, where sports betting sites need daily fantasy sports.
Last year, Global Daily Fantasy Sports, Inc.'s most notable deal was a distribution with NYX Gaming that afforded NYX with $500,000 plus a monthly royalty in exchange for the promise that NYX would distribute Global Daily Fantasy Sports, Inc.'s product. Back then, Global Daily Fantasy Sports, Inc. made it clear that it was hyper-focused on growth in Europe, and today's announcement that it has purchased Mondogoal is direct evidence to support that claim.
"It's kind of our first M&A transaction," added Krogh. "The market in Europe is not as advanced as the North American DFS market, but there are some big operators moving into the space. I'm of the view that the industry's going to grow there just like it did in North America."