DFS consolidation continues as FantasyDraft acquires Fantasy Aces
Transaction process to be completed in 3-5 days, with Aces players and balances shifted to the new platform
Charlotte-based operator FantasyDraft has announced the acquisition of rival DFS site Fantasy Aces for an undisclosed sum.
The two firms issued an announcement on Thursday, saying the deal included “certain assets of Fantasy Aces including the Fantasy Aces player base and their respective account balances”.
The Fantasy Aces website has now been shut down, and replaced with the message saying: “We appreciate your patience as we work with the FantasyDraft team to ensure a smooth transition for our players.
“We expect the process to be completed within 3 to 5 business days, and will provide more detail as it becomes available.
“We’re excited about this opportunity, and think that you will be too”.
FantasyDraft issued its own message to customers, telling them: “In the short term, it means that there will be more competition on the site, keeping the playing field level.
“In the longer term, it means that we’ll have more resources to invest in the platform, allowing us to develop more features creating a better daily fantasy experience for everyone.”
Aces had promised some sort of announcement to players on Wednesday, after customers complained about being unable to withdraw funds.
However some customers were unhappy with the way the transition was handled.
“This really is a pretty damn pathetic way to handle this,” one poster said on the RotoGrinders.com forum.
“There should be in no way, shape, or form a lack of access to player funds for any period of time. They should either be available for withdrawal or available on FantasyDraft immediately. No access to my account or history? Especially during tax season? Jesus this is a horrendous way to handle things.”
The deal also sees significant management changes at Aces – which claimed to be the third largest DFS company in the US in its Q3 results – with Robert Gates and Thomas Cipolla resigning as directors and Michael Olsen resigning as CFO.
It is unclear what will happen to Aces co-founders, the Frisina brothers, who had not responded to an EGR North America request for comment at the time of publication.
Aces said another statement with more details would be forthcoming in the “next few days”, as it has also halted trading on the Toronto Stock Exchange.
The deal continues the consolidation of the industry, after Fantasy Aces itself acquired the player database of Fantasy Feud last year.
Market leaders FanDuel and DraftKings are also waiting to waiting from competition authorities as to the legitimacy of their planned merger.