Amaya Halts Operation of StarsDraft in Most States Pending Regulation
MONTREAL, Canada – October 19, 2015 – Amaya Inc. (Nasdaq: AYA, TSX: AYA) (“Amaya”) has announced that it is limiting its daily fantasy sports (“DFS”) brand StarsDraft from operating real money games and tournaments in most U.S. states following a review of recent developments in a number of jurisdictions. The decision is not anticipated to have a negative financial impact on Amaya. StarsDraft players in all jurisdictions will continue to have access to the funds in their online accounts, which are available for withdrawal at any time.
We have previously called for state regulation and licensing of DFS to ensure consumer protection and strict government oversight of operators. Prior to the launch of StarsDraft and based on a thorough review of the regulatory environment at the time, Amaya decided not to launch StarsDraft in jurisdictions where many of our competitors continue to operate today, including Michigan. We recently withdrew from Florida and Nevada, where last week the respected Nevada Gaming Control Board (NGCB) determined that DFS operators in that State are required to obtain a gaming license from the NGCB. Amaya supports the decision by the NGCB, and believes that it is prudent to limit the StarsDraft offering until such time as more states adopt a clear stance on daily fantasy sports.
We will actively monitor developments and work with all states interested in implementing clear guidelines for the operation of daily fantasy sports in their jurisdiction. In the meantime, StarsDraft intends to focus operations in states with favorable existing daily fantasy sports guidance, including New Jersey, Massachusetts, Kansas and Maryland.
Amaya entered the daily fantasy sports industry a little over a month ago when it acquired Victiv and re-launched it as StarsDraft, bringing its global experience in gaming regulation and best practices with respect to compliance, security, responsible gaming and player fund protection. Amaya is currently the most licensed online gaming operator in the world.
