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MGT Capital Investments in Deal With Fanwars
Thursday November 20,2014 : MGT CAPITAL IN PARTNERSHIP WITH FANWARS
Increased liquidity for MGT fantasy sports platform
MGT Capital Investments, Inc has entered into a revenue share agreement with Las Vegas-based FanWars LLC.
Under the terms of the agreement, MGT Sports will provide the technology infrastructure for FanWars.com to offer daily fantasy sports tournaments.
"We are very excited about this deal — it allows us to offer our players many more contest options and larger prize pools," said Kevin De Vincenzi, chief executive officer of Fanwars LLC. "Today's partnership announcement enhances our ability to offer the high-stakes, big-payout action that fantasy sports players crave."
Robert Ladd, Chief Executive Officer of MGT, added: "MGT Sports is pleased to enter into this alliance with Fanwars, bringing further player liquidity to our daily fantasy sports platform. Moreover, we look forward to sharing the digital and traditional marketing skills of the Fanwars team."
In related news, MGT Capital said the company's third quarter had shown continued development and growth in its daily fantasy sports platform and it expects to close its fiscal year with an annualised revenue run-rate of over $2.0 million based on contributions from several white label deals in process, and the strong momentum of DraftDay.
"As we execute, we remain confident that our shareholders will benefit greatly from the rapid expansion of this industry," Ladd said. "Recently, the top two sites were accorded extremely high valuation metrics by prominent venture capitalists, and the professional sports leagues have fully embraced the space.
“The player liquidity and technology platform of DraftDay are valuable assets that are very costly, time consuming and difficult to replicate. We continue to be active in white label and other partnership discussions in order to drive revenue growth."
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