Amaya Gaming linked with DraftDay acquisition

Amaya Gaming is believed to have held talks with the owners of US-facing DraftDay over a potential acquisition of the daily fantasy sports operator, eGaming Review has learnt.

MGT Capital Investments, which acquired New York-based DraftDay for US$600,000 plus stock options back in April 2014, confirmed it was negotiating a sale when reporting its FY 2014 results earlier this month.

“In recent weeks, MGT has communicated with several parties expressing interest in a potential investment or purchase of DraftDay,” the firm said in a statement.

“The company is reviewing multiple indications of interest in an effort to create maximum value from DraftDay’s position as the third largest daily fantasy site,” MGT added.

Sources close to the situation said that MGT was looking for around $10m (£6.5m) for DraftDay, but also wants to retain a 20% stake in the company.

Sources also confirmed to eGR that Amaya was among the parties interested in acquiring DraftDay.

The gaming giant announced plans to enter the DFS space back in March and Amaya has said it plans to have its DFS offering live in the US ahead of the start of the NFL season in September.

Amaya CEO David Baazov said the firm “clearly saw strong demand” for a DFS offering “specifically among the US players that were former PokerStars players”, but hasn’t provided detail on whether it will build, white-label or acquire a platform.

When contacted by eGR about the potential acquisition, an Amaya spokesman said the firm “does not comment on rumours or speculation”.

PokerStars has the potential to be a major DFS player, but has a mountain to climb in order to catch market leaders FanDuel and DraftKings, who between them hold around 95% of the US market.

They will also have to go head to head with Yahoo! after the internet giant announced it too would enter the daily fantasy sports sector earlier this month.