Local startup FantasyDraft.com is competing against the big boys like DraftKings and FanDuel
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News Capsule
Charlotte-based, daily fantasy sports startup named FantasyDraft competes against industry giants like DraftKings.com and FanDuel.com to become the go-to site for fantasy contest players.
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FantasyDraft.com Fast Facts
- Founded in 2014 and privately held. According to Forbes, investors include Charlotte entrepreneur Robert Stevanovski (ACN Chairman and Co-Founder) and senior managers at The Jordan Company (private equity firm).
- Key FantasyDraft employees include Grant Yoder (CEO), Stephen Krombolz (COO & Co-Founder) and Steve Hall (Director of Digital Media & Creative Services). Team is less than 15 employees.
- Headquarters is located in Cornelius, .
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How Does This Work?
There are a variety ways to compete, but the general way daily fantasy sports sites work is that you draft a team of real world athletes who score fantasy points according to the set scoring rules and you compete against others over the course of one day. Everybody pays to enter and the winner(s) wins the pot. Pretty simple. Want more information? Watch this explainer on their YouTube channel or view their simple FAQs.
Wait, Is This Legal?
Yes. Long story short, the laws consider this a game of skill, therefore it’s not ruled as gambling.
“In 2006, Congress passed The Unlawful Internet Gambling Enforcement Act (UIGEA) to outlaw unlawful internet gambling. In the law, Congress specifically addressed the legality of Fantasy Sports, classifying it as a game of skill. In particular, Congress exempted: ‘Participation in any fantasy or simulation sports game or educational game or contest in which (if the game or contest involves a team or teams) no fantasy or simulation team is based on the current membership of an actual team that is a member of an amateur or professional sports organization and meets the following conditions…” More here and here.
The Market
The daily fantasy sports market is booming. In early July, FanDuel.com raised $275 million at over a $1 billion valuation and more recently, DraftKings raised $300 million at a $1.2 billion valuation. So yeah, the market is massive and growing like a weed. Millions of dollars are being spent right now (thus all the tv ads you see) as these companies attempt to become the market leader.
How Is FantastyDraft Positioned Differently Than The Big Boys?
- Larger PayoutZone – They pay out a minimum of 25% of players in their paid contests.
- Lower Contest Fees – Lower contest fees means more money in the PayoutZone.
- Flexible Lineup Structure – Freedom to choose more of your favorite players.
- Multi-Entry Capping – Levels the playing field by limiting the number of lineups players can enter in our contests.
- 6 Degrees of Pay – Refer friends and earn cash every time they pay to play. And when their friends pay to play, and their friends five times removed. (Note: Kind of like a pyramid scheme, but I bet it works.)
- Play with the Pros – Play against your sports heroes both active and retired. (Note: Pro endorsers include London Fletcher, Drew Brees, TY Hilton, Jordy Nelson, Andy Dalton, Jimmy Johnson and more.)
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