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Sunday, Oct 1, 2023

FantasyAces Acquires More Players

The parent company of Aliso Viejo-based startup FantasyAces LLC has entered an agreement to acquire a database of fantasy sports players from Gaming Nation Inc.

The deal will bring Fantasy Aces Daily Fantasy Sports Corp. more than 35,000 unique users for $19,000 in cash, and an additional payment to be determined. The additional payment will be paid in common shares based on their 20-day moving average on the transaction date.

Both companies are traded on the Toronto Stock Exchange, which must approve the deal.

“This deal should prove to be extremely accretive to shareholders,” FantasyAces Chief Executive Tom Frisina said in a statement. “The timing of the deal could not be better as we move in to the biggest quarter of the year, with NFL starting, followed by NBA and NHL, while MLB and PGA continue.”

The combined entities posted gross revenue of $1.1 million in the first six months of this year, paying out some $12.1 million in prizes. They had a combined 1.3 million game entries in the period, which would be among the largest in the nascent gaming segment, which has attracted millions of players across the U.S. and legal troubles in several states.

FantasyAces has over 24,000 members who pay as little as a dollar a day to participate in some fantasy leagues in baseball, basketball and football, up to more than $100 to get into tournaments.

Teams are often represented by a single competitor who is owner, coach and general manager. Each team drafts players and starts them in a lineup that generates scores based on actual game statistics.

It’s common for players to enroll in several daily events run by different companies. Players set up an online account with a credit or debit card that is adjusted per game play.

The booming fantasy sports segment is dominated by FanDuel Inc. in New York and Boston-based DraftKings Inc., which control more than 95% of market share.

Reports have surfaced linking those two companies in a potential merger.

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