Sports prediction app Sports Hero is targeting Big Bash cricket fans in a new agreement with daily fantasy sports competition Play Up.
Under a three-year agreement, SportsHero (ASX:SHO) users can play daily fantasy sports games within the SportsHero app, adding to a range of sports gamification offerings.
Daily fantasy sports is a multi-billion dollar market in the US, but has attracted controversy due to its similarities to gambling.
Unlike ordinary fantasy sports, in which users follow players over a season, the daily iteration runs a condensed competition in a week or day-long competition.
Play Up is a real-time sports driven social platform where players compete in non-wagering fantasy sports competitions where prizes are sourced through advertising.
The agreement between SportsHero and Play Up parent company Fantasy Sports Global, will generate revenue for the app through one-off commissions of up to $3 on each player directed to the game.
News of the partnership did little to rally the shares, which remained at 7c on Thursday to give SHO a valuation of $8.25 million.
The fantasy sports duo will launch their service in time for the Big Bash League season which starts on December 19.
They say they will bring out all the stops to reach a target of 1 billion users before year’s end, leveraging the social networks of cricket favourites the likes of Sachin Tendulkar, Michael Clarke and Chris Gayle.
SportsHero boss Tom Lapping said: “We are delighted and very excited about this new partnership which adds a new monetisation model to our business. Through our partners, we now have access to a very large combined community of over 700m people globally and are keen to test this monetisation model.”
Its all part of the company’s goal to connect sports fans who come together to play sports games, consume content and interact with their sporting idols.
At the end of the quarter SHO has $1.2 million in the bank, with no receipts from customers.
They anticipated outgoings of $480,000 for the quarter to December.