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eSports operator Vulcun to cease accepting Real Money Bets
Tuesday January 5,2016 : DAILY FANTASY E-SPORTS FIRM EXITS REAL-MONEY WAGERING
Heat in the real-money eSports kitchen too hot for Vulkun.
A year on from its launch, daily fantasy eSports operator Vulcun has announced that effective January 14 2016 it is to cease accepting real-money fantasy wagers on eSports events.
The company says its decision is motivated by the uncertain legal and regulatory environment in the United States, where political and enforcement activity has been making the daily fantasy sports industry an uncomfortable place to operate over the past few months
Two months ago Vulkun voluntarily exited the Nevada market to be on the safe side following a pronouncement by regulators that DFS real-money activities constituted gambling and must be licensed.
Vulkun management posted notice of its intentions on the company website Monday, effectively shutting down real-money wagering just before the start of a new season of League of Legends tournament action.
The notice advises players to empty their accounts before February 5, after which any remaining funds will be converted into ‘gold’, the site’s proprietary virtual wagering currency. All unused pending bonuses will expire on February 6.
Management's decision was based on an objective look at the overall situation in relation to recent events, the notice advises, observing that less than 10 percent of its users engaged in paid fantasy play during December.
Whilst hardly a market leader, Vulkun was a significant player, competing with the fantasy eSports offerings of DraftKings and Alphadraft, a fantasy eSport outfit owned by FanDuel.
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