MGT CAPITAL INVESTMENTS ACQUIRE FANTASY SPORTS FIRM
23rd April, 2013 at 05:51:14
First time online gambling operational venture for investment firm
MGT Sports Inc, a wholly owned subsidiary of MGT Capital Investments has ventured into the online and mobile gaming and wagering industry with the acquisition of a controlling interest of 65% in FanTD LLC.
FanTD LLC's website fanthrowdown.com hosts an interactive offering where customers participate in free or real-money fantasy sports play. The company generates its revenue through a rake of the total amount bet.
Launched in 2012, the operation offers daily fantasy gameplay on NFL, MLB, NCAA (basketball and football), NHL and NBA, with plans on expanding its offer to include NASCAR and professional golf.
"It is hard to overstate the potential we see in legal online gambling, both now and in the near future, as States continue to relax prohibitions in pursuit of tax revenue. Betting on fantasy sports is legal in nearly all states and has a preferential carve-out on the Federal level under the Unlawful Internet Gambling Enforcement Act of 2006.
Today's announcement is part of MGT's comprehensive strategy to add other games of skill over the next several months, with an emphasis on mobile applications and secure technologies," said Robert Ladd, MGT's President and chief executive officer.
The deal is expected to be closed within two weeks.
Related News Tags: UIGEA, Censorship