Earlier this month, a deal fell through which would have had FantasyDraft acquiring the account balances of FantasyAces players totaling $1.3 million. In a drastic turn of events late Monday evening, FantasyDraft made an announcement of their intendions to reimburse 99.6% of FantasyAces account balances in cash.
The remaining 0.04% of accounts, which would include account balances over $1,000, will be given the option of receiving FantasyCash and bonuses.
In a statement posted on Rotogrinders, FantasyDraft CEO & Co Founder of FantasyDraft Steve Krumbolz, indicated this move was done for the players. “We feel that we need to do our part to protect the lifeblood of the industry, you the players.”
— FantasyDraft (@FantasyDraft) February 14, 2017
Details of the FantasyAces Player Bailout
To facilitate the player bailout, FantasyDraft has entered into an agreement with the FantasyAces bankruptcy trustee to obtain player account information. As part of the announcement, FantasyDraft revealed that they will reimburse Fantasy Aces players up to $1,000 to cover their FantasyAces account balance. This threshold would be enough to cover approximately 99.6% of all FantasyAces players.
For players with larger FantasyAces balances, FantasyDraft will offer the following packages:
– For players with Fantasy Aces balances of $1k-$5k, FantasyDraft will provide $1,000 in cash with the remaining balance in FantasyCash up to $4,000. FantasyCash is funds that can be used to enter contests. They are the next best thing to cash — withdrawals can be made from any winnings.
– For players with Fantasy Aces balances over $5k, FantasyDraft will provide $1,000 in cash, $4,000 in FantasyCash and a pending FantasyDraft bonus for the remainder of the balance. The pending bonus clear at a rate of 4% for every $1 in entry fees, credited in FantasyCash. This is the equivalent of getting 40% FantasyDraft rakeback.
Additional details of the reimbursement will be provided upon a court approval.
How Good of a Deal is this for FantasyAces Players?
In total, this appeares to be excellent news for Fantasy Aces players who had written off their balances after Fantasy Aces’ bankruptcy announcement.
Players with balances up to $1,000 come out the best, with the biggest hindrance being the wait until the deal is approved. Players with balances up to $5,000 also will come out really well, despite being paid in FantasyCash. This is because FantasyCash is easily transferred to actual withdrawal-able cash by playing in low variance contests (for example 50/50s, heads-up). The biggest inconvenience is the time taken churning through a bunch of buy-ins, but not the worse outcome for those who enjoy DFS.
Players with balances over $5,000 don’t get as good of a deal, although they still get to receive cash and FantasyCash for their first $5k. Anything after $5k will need to be cleared as a bonus. This is not ideal for affected players, but still a tremendously positive turn events compared to what these players faced just a day ago.
CEO: FantasyDraft Funds are Segregated
In addition to providing Fantasy Aces with the welcomed bailout offer, FantasyDraft also reminded players that all FantasyDraft player funds are segregated from operational funds, implying that similar issues that plagued FantasyAces should not be a concern to FantasyDraft players.
“I want to reiterate that FantasyDraft is committed to being a responsible citizen of the DFS community. That means we do things the right way, and your funds will ALWAYS be segregated and protected. We are licensed or registered in all states that have passed DFS regulation and are compliant in each. When we say that We Put Players First, we mean it.”
Who is FantasyDraft?
FantasyDraft is believed to be 4th largest daily fantasy sports site in the world, behind DraftKings, FanDuel and Yahoo Daily Fantasy. They offer contests for the NFL, MLB, NBA, NHL, and more recently, the PGA.
During the NFL season, FantasyDraft run guaranteed tournaments up to $100,000. The NBA contests featured guaranteed tournaments up to $5k nightly with specials up to $20,000. Players can also find leagues, 50/50s, multipliers, head to head and satellites. The DFS site also offers a selection of heads-up rake free contests.
Once player funds are reimbursed, we would expect to see a noticeable spike in activity from the influx of FantasyAces players as well as some potential FantasyDraft fans they earn should the deal go through.
Stay tuned to OnlinePoker.codes for more developments.