Online Fantasy Sports Betting Firm DraftDay Sold

Published Wednesday, September 09, 2015 -
Online Fantasy Sports Betting Firm DraftDay Sold

The exploding online experience called daily fantasy sports betting has prompted the big operators such as Amaya Gaming and Yahoo into the fray and there are other situations playing out in the business that are significant. A recent announcement by MGT Capital Investments, Inc. which engages in the business of acquiring, developing and monetizing assets in the online and mobile gaming space, as well as the casino industry revealed it has divested itself of its daily fantasy sports assets.

The sale to a new entity formed by Viggle Inc. and Sportech Digital, a subsidiary of Sportech will create a new firm called DraftDay Gaming Group, Inc. that will continue to offer the same high quality daily fantasy sports experience. Viggle will own 44% of DraftDay Gaming Group, Sportech will control 35%, MGT will retain 10%, employees and other shareholders will have the remaining balance.  MGT Capital and its subsidiaries own and operate social and real money gaming sites online and in the mobile space, including and SlotChamp™. 

The new entity will have synergies with Sportech, Inc. which is a global provider of wagering technology and services to licensed gaming operators and consumers.  The Sportech Racing and Digital division is a leading global provider of wagering technology solutions to licensed racing and betting operators, and the largest provider of white label digital technologies and services to licensed gaming operators in the U.S.

The other new addition to the DraftDay offering is Viggle, an entertainment marketing and rewards platform whose app rewards its members for watching TV shows and discovering new music. The Viggle Platform had an average monthly total reach of 23.6 million for the three months ending June 30, 2015, including nearly 10 million Viggle registered users. Since its launch, Viggle members have redeemed over $26 million in rewards for watching their favorite TV programs and listening to music.

This looks like a great combination for consumers and businesses alike.

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