Caesars Boosts Sports Betting Technology with ZeroFlucs Acquisition

Published: July 5, 2024, 06:46h.

Last update: July 5, 2024, 06:46h.

Caesars Entertainment (NASDAQ: CZR) today announced the acquisition of ZeroFlucs Group Pty Ltd. to strengthen its sports betting technology business.

Caesars Hedge Funds — Visitors enter Caesars Palace Las Vegas. The operator acquires ZeroFlucs to complement its sports betting technology stack. (Photo: David Paul Morris/*Bloomberg*)

The Australian company is a software provider whose products allow sports betting operators to efficiently update odds and prices while preserving existing data relationships. Financial terms of the deal were not disclosed.

“The acquisition of ZeroFlucs follows the successful integration of ZeroFlucs technology with the Caesars Sportsbook platform through a commercial agreement that enabled the recent launch of new products such as Same Game Parlay (SGP) betting and a significantly enhanced menu of SGP-eligible markets for Major League Baseball,” the statement said.

Caesars did not say when the deal would close, but the buyer noted that Steve Gray and Carly Christensen will remain at ZeroFlucs’ helm, with Christensen joining Caesars Digital as senior vice president of pricing technology..

The Sports Betting Technology Race Heats Up

Caesars’ deal with ZeroFlucs is the latest sign of an intensifying race for sports betting technology.

The deal was announced less than two weeks after MGM Resorts International (NYSE: MGM) said its LeoVegas unit would buy Tipico Group’s U.S. iGaming and sportsbook operations for an undisclosed sum — a move that market observers believe is largely technology-driven.

With live betting and SGPs being the primary ways for sportsbook operators to increase betting volume and profits, strengthening technology resources becomes a significant focus as many punters tempted by high-odds betting will make decisions about where to place their bets based on the technology offerings of operators.

With respect to ZeroFlucs, “the acquisition strengthens a partnership between the companies that has already enhanced the customer experience and will continue to deliver exciting new features and product benefits to Caesars Sportsbook players,” Caesars added in a press release.

How ZeroFlucs Can Help Caesars

As technology increasingly enters the world of sports betting, speed becomes an essential factor in increasing the live betting offering a sportsbook operator can offer to players.

In almost all major team sports, odds can change during play based on the action—touchdowns, home runs, etc. Slow technology can force operators to only refresh odds during breaks in play, but smart bettors know they may not be getting the best odds.

For ZeroFlucs and Caesars, the acquired company’s expertise in baseball SGPs could be tempting, as the sport’s slow-paced nature favors SGPs and live betting. This fact has not gone unnoticed by gaming companies, and with better technology, it’s possible that operators will attract more betting on baseball, a sport that falls far short of football and basketball in terms of service.