Amaya Gaming Looking At Fantasy Sports Betting

Fantasy sports gambling is a growing sector of the online gambling arena, especially in jurisdictions where betting on real world sports events is illegal. In the United States the major share of the market is held by two operators, FanDual and DraftKings. Competing against these juggernauts is the smaller and lesser known DraftDay. Amaya Gaming, the Canadian Internet gaming giant operating from Montreal and quoted on the Toronto stock exchange, is considering the acquisition of DraftDay according to market reports. Apparently there is no confirmation from Amaya. For a while Amaya gaming was quiet on the acquisition front after the investigations into its PokerStars takeover. But now it seems to be on the move again.

The genesis of this report is a cryptic hint dropped by David Baazov, the CEO of Amaya Gaming, a month back. In a meeting with analysts he said that the company was expressing interest in “parallel tracks of internal development and strategic acquisition”. The strategic acquisition he was referring to was DraftDay.

By entering the fantasy sports league betting business Amaya Gaming will be able to broaden its offerings to customers. It will be able to take on board players who are unable to participate in or uninterested in real sports betting. In many countries sports betting and/or online gambling are illegal or are considered grey areas as far as their legality is concerned. There online fantasy sports betting can be a viable alternative. One of the drawbacks of DraftDay is that it does not have the resources to market it product. There is a need to make a broader audience aware of fantasy sports betting. Many have not heard of the activity. Others are not enough aware of the details to take a call.

DraftDay is the perfect acquisition opportunity for Amaya. DraftDay is the third largest operator in this field on the Internet. It is committed to growing its market share, should the required resources be made available. The site offers a high quality playing experience with a user friendly interface. It was started by two well-known poker players, Taylor Caby and Andrew Wiggins who are also cofounders of the popular CardRunners. DraftDay is currently owned by MGT Capital, an ailing company traded on NYSE. The financial woes of DraftDay will bring down the asking price, since it appears that MGT Capital is looking to exit. Amaya’s financial backing and DraftDay's experience in the field will complement each other in this venture.

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