Amaya to Purchase DraftDay?


One of the biggest rumors this week in the online poker world has Amaya Gaming, the parent company of PokerStarsand Full Tilt, purchasing DraftDay, a US-facing daily fantasy sports site.

MGT Capital Investments owns DraftDay, which was started by poker players Taylor Green PlasticCaby and Andrew muddywaterWiggins. According to eGaming Review, MGT said about a prospective sale, “In recent weeks, MGT has communicated with several parties expressing interest in a potential investment or purchase of DraftDay. The company is reviewing multiple indications of interest in an effort to create maximum value from DraftDay’s position as the third largest daily fantasy site.”

We know Amaya announced that it plans to enter the daily fantasy sports space in the US by the start of the 2015 NFL season. Amaya would supposedly go head-to-head with the two goliaths in the space already: FanDueland DraftKings.

In terms of compensation, according to eGaming Review, “MGT was looking for around $10 million for DraftDay, but also wants to retain a 20% stake in the company.”

eGaming Review added that catching up to FanDuel and DraftKings will be a herculean task for Amaya, as the two companies own a combined 95% of the market. Other players like DraftDay and FantasyFeud make up the remaining 5%. DraftKings bought rival StarStreet last August, one month after acquiring DraftStreet.

Fantasy sports received a carve-out in the Unlawful Internet Gambling Enforcement Act and, as such, have been allowed to flourish in the US market, while sites like PokerStars and Full Tilt have been banished. Amaya could reportedly use PokerStars’ and Full Tilt’s former US customer base to jump-start its daily fantasy sports offering.

Disney recently invested $250 million in DraftKings, while Yahoo announced last week that it’s entering the daily fantasy sports space this summer.

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