FanDuel Follows DraftKings And Raises $70 Million In Funding
The popularity and proliferation of fantasy sports betting sites has got major global companies backing these ventures. So when you add real money to fantasy sports you have a recipe for huge growth as you attract both devoted sports fans as well as traditional gamblers.
The adrenalin of betting for real money on your favorite sports team is proving to be a sure bet for companies like Yahoo, CBS and ESPN. In the last few months we have reported on DraftKings which have been acquiring their rivals and consolidating their company into a major player that can rival the likes of ESPN, CBS and Yahoo Sports.
Not to be outdone by DraftKings another startup FanDuel has announced they raised $70 million in funding led by Shamrock Capital in the first round. Like DraftKings , FanDuel offer online users the chance to bet on one day tournaments which is a major advantage over other online fantasy sports sites that only offer seasonal tournaments.
FanDuel intend to reward players with up to $400 million in prizes this year. Only last month did rival DraftKings raise $41m in a new round of funding. FanDuel generates revenues from taking a small percentage on the entry fees which has resulted in them turning a profit from the last quarter of 2013.
Real Money fantasy sports are enjoying a boom period as they are exempt from restrictions on gambling as their games are considered ones of skill and not chance CEO Nigel Eccles said they are looking at an IPO in two or three years. One has to ask the question if DraftKings and FanDuel will try and purchase each other or even merge to become an equal with the big boys.