Pokerstars / Amaya entering Fantasy Sports
PokerStars soon be Fantasy Stars in the US?
Daily Fantasy Sports has been ruled by top two companies, DraftKings (read our Draftkings Review) and FanDuel (Read our Fanduel Review), but their dominance might be challenged in the coming NFL season. Amaya gaming, a Montreal company made waves with its unexpected purchase of Full Tilt and more importantly PokerStars. However it was Amaya Gaming's CEO David Baazov who made his intentions clear during an earnings call taking place at the end march.
“We have also taken the strategic decision to enter the daily fantasy sports category and are pursuing parallel tracks of internal development and strategic acquisition. We expect to provide more details on this strategy in the second half of 2015 but see a clear crossover from poker and daily fantasy sports.”
Amaya gaming also seems keen to take full advantage of this opportunistic time, as the NFL season is coming. ““The goal is to be up before the NFL season starts … We clearly see a strong demand for it … a lot of the U.S. players that were formerly PokerStars players would like to see us launch fantasy sports,” Baazov stated.
The significance of Amaya Gaming's entry into the Daily Fantasy Sports industry is apparent, not only a because of the competition it will present, but also due to its ties with gambling. PokerStars could change the perceptions concerning Daily Fantasy Sports, mainly towards the reconsideration of the industry being similar, or not, to gambling. An activity not legalized in forty seven states.
It is however licensed by the New Jersey Division of Gaming Enforcement as a gaming platform and content supplier. Making it a first time licensed gaming company setting foot into the Daily Fantasy Sports industry. Not only that, Amaya Gaming has acquired numerous licenses from other jurisdictions, of which the UK Gambling Commission recently handed down to Amanda Gaming.
If Amaya Gaming does intend to seriously capture significant market share within a short period of time in the daily fantasy sports industry, an acquisition of a brand name. Both market leaders FanDuel and Draft Kings can't be bought, with their hefty price tags exceeding billions of dollars, and the fact that it still must fulfill the debt after the acquisition of Poker Stars and Full Tilt.
Amaya Gaming is ready to make a splash as unnamed sources have also revealed that CEO David Baazov is eyeing a Draft Day acquisition, one of the original brands of Daily Fantasy Sports, and clearly eyeing the no Three position in the process.