Daily Fantasy Sports giant DraftKings, who is now also active in UK, have acquired the world’s leading mixed martial arts website, Kountermove.
DraftKings, the leading provider of daily fantasy sports that awards cash for a range of fantasy games based on MLB, NFL, NBA, PGA, Premier League Football, UEFA Championship League, Nascar, American college football and basketball and MMA, have bought the Fantasy MMA site Kountermove. DraftKings had launched their MMA platform in 2014 and already has 200,000 registered players; they will gain another 30,000 new registered players from Kountermove through this acquisition.
Striving for the number one spot
Matt Kalish, founder of DraftKings, stated that the company was looking for opportunities to expand their MMA platform; Kountermove, being the leading provider of MMA sports coming together with DraftKings, a daily fantasy sports giant seemed very appropriate. The acquisition allows the company to develop on its existing MMA platform and fast-tracks their growth in the combat sports area.
DraftKings has always mirrored the same strategy as Kountermove; prompting players to create a team of five fighters, with a salary cap, and earn performance based points from their matches. To maintain customer satisfaction, they are actively offering loyalty and transfer bonuses to players; DraftKings expects another 5,000 paying members to sign up.
A big step for fantasy MMA
Brian Knapp, co-founder of Kountermove stated that the deal will expand the market and recognition of fantasy MMA worldwide. He also mentioned that partnering with such a large daily fantasy sports site is guaranteed to offer their players a bigger and better platform to enjoy fantasy combat sports.
DraftKings have long been in competition with Fantasy Sports Site FanDuel, the largest daily fantasy sports company in the world, which hosts over 600,000 line up entries each week. They have been aggressively acquiring smaller companies and the purchase of Kountermove will give them an added edge. A press release is expected to soon be held to broadcast the deal and its terms which are yet to be disclosed.
Ongoing legal issues
Amidst the confusion surrounding the legitimacy of fantasy sports in the USA, DraftKings have seen their fair share of legal issues. Eric Schneiderman, Attorney General of New York who believes fantasy sports should be classified as a form of illegal gambling has therefore filed an injunction against the company to stop all activities in the state and recover any funds they have earned in New York.
They have also faced scrutiny regarding employees’ using inside information to earn large winnings from their matches. The various proposed legislations across the country that are being backed by daily fantasy sports companies such as DraftKings and FanDuel alike would grant them lawful status to operate but, at the same time, prevent employees from participating in matches or using and sharing specialised data with the public.[sc:draftkings]