Operator MGT Capital Investments has announced it has completed the sale of its daily fantasy sports (DFS) assets to a newly formed entity made up of Sportech Digital, a subsidiary of operator and supplier Sportech, and entertainment marketing company Viggle.
MGT lists its DFS brands as DraftDay and FanThrowdown, which recently merged platforms with DraftDay.
An approximate $5m in total consideration will be provided to MGT, consisting of promissory notes of Viggle, restricted shares of Viggle’s common stock and a retained equity interest in the new venture.
The new company will be called DraftDay Gaming Group, with Viggle, which MGT has an ownership stake in, owning 44%, Sportech owning 35% and MGT owning 10%, with employees and other shareholders owning the balance.
Rich Roberts, the current president of Sportech Digital, will be DraftDay CEO, while Robert F.X. Sillerman will be chairman of the board.
Nic Sulsky, vice president, fantasy sports at Sportech, will be president and Viggle CFO John C. Small will act as CFO.
Provider Amaya Gaming announced on Tuesday it has entered the DFS market with the official relaunch of DFS operator Victiv as StarsDraft by PokerStars, after acquiring Victiv in August.
Amaya’s move into the market follows internet corporation Yahoo’s launch of Yahoo Sports Daily Fantasy in July and mass media company CBS’ launch of its DFS product, SportsLine, in August.