White Label Daily Fantasy Sports Platform Development Becoming Big Business
While much attention has been paid over the past year to Daily Fantasy Sports websites offering contests, the true beneficiaries of this industry may very well be the white label Fantasy Sports developing sector.
“We constantly notice searches for Daily Fantasy Sports software inquiries here at Gambling911.com,” notes Payton O’Brien, Senior Editor of G911. “This tells us there are probably hundreds, if not thousands, of people looking to enter the burgeoning industry.”
MGT Capital Investments is one of the better known providers of white label Fantasy Sports software. They helped develop the software platform for what had been the 3rd largest DFS site, DraftDay.com and recently inked a deal with the world’s largest adult entertainment company, Vivid, to offer a Daily Fantasy Sports site.
MGT also launched Daily Fantasy Legend in partnership with Facebook to become the First Daily Fantasy Platform on Social Media.
More recentlyl, MGT Capital Investments made quite the splash by announcing their intention to sell their daily fantasy sports assets, including DraftDay, to leading software provider Sportech.
That transaction will provide MGT with approximately $7.0 million in total consideration, including $4.0 million cash; MGT will also retain an equity interest in the new venture (including common stock and warrants), with an initial valuation of up to $3.0 million. Subject to financing and other closing conditions, the Company expects the deal to close before the end of the current quarter.
It’s easy to see there is big business in the creation of white label Fantasy sites. They are also relatively inexpensive to license.
Case in point: FanVictor.com. This company appears to operator in the same vein as the Pay Per Heads for local bookmakers in the sense that they tend to cater to small to medium size groups that have an intimate knowledge of their customer base.
FanVictor provides turn key solutions that are completely automated, managed with the ability to brand as one wishes. Their packages include setup and maintenance. Prices start at just $1000. They also provide a grassroots fantasy sports service which enables sports clubs, leagues and schools to run fantasy sports games based on their own teams, players and results.
With the Daily Fantasy Sports market heading towards the $1 billion mark, white label software and turnkey solutions company will have the ability to capitalize in a very big way.
- Aaron Goldstein, Gambling911.com
