Two smaller daily fantasy sports sites will be joining forces, consolidating the DFS industry just a week before the start of the NFL season. Fantasy Aces has announced via press release that they have acquired the database of Fantasy Feud players. As part of the deal, Fantasy Aces will receive “direct access” to over 35,000 of Fantasy Feud players. The Fantasy Feud platform will not be used. The deal is pending approval by the TSX Venture Exchange and other regulatory agencies.
Details of the Fantasy Aces Fantasy Feud Deal
In a statement, Fantasy Aces noted that many of Fantasy Feud 35,000 players are unique and do not currently have a Fantasy Aces account. For these players, Fantasy Aces will pay $125 per player to the parent company of Fantasy Feud. For the remaining players, FantasyAces will pay Fantasy Feud a total of $25,000 plus shares in the company. The exact terms will be settled once the number of unique players has been agreed upon.
Through its acquisition of Fantasy Feud, Fantasy Aces hopes to become an alternative choice for daily fantasy sports players. Currently, DraftKings and FanDuel holds a dominant position in the industry with an overwhelming lead in activity and prize pools. Tier 2 sites such as Yahoo and FantasyDraft have not yet been able to make much impact into either site’s market share. While there will be some overlap in players, Fantasy Aces believes that a portion of the 35,000 users being acquired will have an immediate impact on Fantasy Aces. Inactive users will be targeted in the site’s promotional and marketing campaigns during the NFL season.
Fantasy Aces CEO Tom Frisina stated the timing was excellent for the acquisition both in terms of seasonality and regulatory progress. “The timing of the deal could not be better as we move into the biggest quarter of the year, with NFL starting, followed by NBA and NHL, while MLB and PGA continue. With certain states finally announcing that DFS players are able to freely play, we expect the whole industry to expand dramatically over the next few years. As a result of this transaction, we could not be more excited to grab a bigger piece of what is becoming one of the biggest new industries in North America.
As regulation develops in the United States, one struggle for DFS sites has been how to compete in the developing market. Individual state regulations thus far have proven to be expensive for DFS sites — both in terms of licensing fees and taxes. The cost of doing business and administering a DFS site is likely to continue to be difficult and favor the major players, many of which are the ones lobbying for regulation changes.
What’s Next for Fantasy Feud Players?
In regards to the transition of Fantasy Feud players to Fantasy Aces there is no definitive word yet. Fantasy Aces has stated that information will be provided later once details are finalized. MLB contests are currently available to join at Fantasy Feud, although there are no NFL contests available.
While some players will undoubtedly be pleased with the strengthening of another DFS site not named FanDuel or DraftKings, others who genuinely liked the Fantasy Feud software that don’t share their sentiments. Complaints voiced by players range from the availability of fewer options to preferences for certain Fantasy Feud features.
Fantasy Feud was one of the more innovative DFS sites, offering features such as seasonal leagues, Pick’em leagues and snake drafts, among other features. Fantasy Aces will not use the Fantasy Feud platform but will be accepting player feedback on any features that should be considered by Fantasy Aces.