INDUSTRY FORUM

Comments

  • db730

    RotoGrinders Media Director

    • 2016 DraftKings FFWC Finalist

    • 2016 DraftKings FBBWC Finalist

    MGT buys DraftDay.com

    Can’t say I saw this coming.

    HARRISON, N.Y., April 1, 2014 /PRNewswire/ — MGT Capital Investments, Inc. (NYSE MKT: MGT) announced today that it has entered into an asset purchase agreement with CardRunners Gaming, Inc. to acquire the DraftDay fantasy sport business and software platform. MGT will pay $600,000 in cash and approximately 100,000 shares of common stock to acquire the DraftDay assets. The transaction is expected to close within one week.

    DraftDay operates one of the industry’s largest and most respected daily fantasy sports wagering sites, ranking fourth highest among competitors in the most recent Alexa reports. DraftDay is also a leader in the popular quick-pick style of skill-based fantasy sports gaming. Andrew Wiggins, co-founder of DraftDay stated, “We have worked tirelessly to build an outstanding product and loyal player base. With MGT’s support, DraftDay will have greater resources to grow this business to new heights. Our employees look forward to making MGT the market leader in daily fantasy sports.”

    Robert Ladd, Chief Executive Officer of MGT, summarized today’s news, “This acquisition represents a unique financially compelling opportunity and tremendous complement to our online gaming businesses. DraftDay will elevate our fantasy sports segment to an entirely new level. We are very pleased to welcome the players and employees of DraftDay.”

    Added Robert Traversa, MGT’s Chief Financial Officer, “Combined with the recently initiated joint venture with Vegas Insider, we expect that the acquisition of DraftDay will be accretive to our operating results, with MGT Sports projected to become cash flow positive by yearend.”

  • Danwahoo

    • 2013 FanDuel WFFC Finalist

    @EmpireMaker2 said…

    You wrote a book of a post and then said I would buy this and then don’t know what price the stock is at. There’s a reason why MGT doesn’t care if they hand over stock like candy. The company doesn’t have any value. They operate a bunch of failing business now including Draftday. You think being a patent troll is worth anything? The Supreme Court and every court have been all over patent trolls recently trying to shut this practice down entirely. It’s all a cover for buying time. Where or when have MGT at any point proven they have competent management to run a dfs site or any business? Every business Robert Ladd has run has been run into the ground for the profit of upper management. There is a reason why DD is selling at such a low rate and to such a super shady company. Means one thing that DD was bleeding money so bad they couldn’t afford operating costs. They simply had to get rid of the business asap to any buyer. I don’t have a lot of respect for that, but no one really seems to care in fantasy. I would just remind people to watch your player funds and remember who is actually running the sites you play on.

    This is spot on. After validating your product and plan, DFS companies have to take the “next step” and raise the funding to guarantee the big prizes that the industry has come to expect. DD either couldn’t do this, or the guys are going after something new. Perhaps its a mix of the two. Regardless, MGT’s mess ups have been well documented, mostly here in the RG community. It is quite difficult to “instill confidence” into users after such mess ups. That is why it is with good intentions when certain guys here bring up that they are concerned about DFS because what MGT might do. Many guys were around for the online poker days (like EM2), so anything fishy, and they won’t trust them with your money ever again; with good reason too.

    I can’t wait for Tippy’s reply either…

  • SoSoFishy

    @Danwahoo said…

    This is spot on. After validating your product and plan, DFS companies have to take the “next step” and raise the funding to guarantee the big prizes that the industry has come to expect. DD either couldn’t do this, or the guys are going after something new. Perhaps its a mix of the two. Regardless, MGT’s mess ups have been well documented, mostly here in the RG community. It is quite difficult to “instill confidence” into users after such mess ups. That is why it is with good intentions when certain guys here bring up that they are concerned about DFS because what MGT might do. Many guys were around for the online poker days (like EM2), so anything fishy, and they won’t trust them with your money ever again; with good reason too.

    I can’t wait for Tippy’s reply either…

    Just wondering. Do you still buy BP gasoline?

    Also how do you know they weren’t approached with this idea? What if they’ve been trying to negotiate deals to buy a bunch of other sites? They are trying to corner the market.

    I keep asking what they have done so wrong. Why would Condia ignore all this and sign on? I’m trusting that some of these people are intelligent and know things we don’t.

    I’m thinking what they know that we don’t makes sense to them. Maybe they fail with their plan. But it seems they are making the right moves to help them succeed. I’ve never played on DD but is it better than FD’s? Cuz FD’s UI is shit. I have no clue why they are the biggest site.

    But let me ask this. How would you become the #1 DFS site? How would you overthrow FD? They have stated that is their intent. That’s what Ladd wants to do. That’s what MGT wants to do and if Ladd can’t do it I imagine he will be sent packing. And then they will bring someone else in.

    I am not saying Ladd is the man. I know little about him. I’m saying Signing Condia. Buying Draftday. Having funding. And being at least #4 in the DFS world is a place to start. They seem to have lots of options of where they could go.

    Why are all of you so sure they will fail? I’m still waiting to see what you see as proof of them failing.

    Tippy asked for them to release their business plan. That’s madness. Tippy is a smart guy. I hope my post wasn’t taken as a flame at him. I think he is usually right. I just don’t think the reasons he gave were evident that DD is going to fall now.

    I’m not sure how Ladd could profit off lighting money on fire buying these without a plan. I just don’t understand what you guys see I don’t. I’m not going to research Ladd or what he did. I’m saying MGT has made some good moves. What they do from here we have to wait and see.

    But if they succeed. If they succeed. AGAIN If they succeed. That is good for ALL OF US. It is great to put FD and DK into competition it will force them to do better. This is good for us. Yes if they run DD into the ground thats bad. But why do you guys think DD was doing so bad?

    Is DS going under too? Is there only room for 2? Hell are any of the sites making money.

    You just said they may have had a problem finding money. Which is the exact reason they gave for selling. So they sold it to a company with money. Who will prolly keep them around as an unofficial adviser roll.

  • EmpireMaker2

    @SoSoFishy said…

    So you’re saying they are liars? That they don’t believe this was best for their customers? Do you think Condia is an idiot? He signed with them because he thinks they will fail? Do you have any proof of this?

    Patent troll? So someone going after the law is a troll now? Isn’t that what the patents are there for. So people can’t steal your ideas? How do you tell the difference between a troll and a serious case?

    What if Ladd learned something? Seems like he’s been trying to be innovative. At least in this approach.

    I would buy stock in this company because they seem to be thinking outside the box. They seem to be making good moves. How do they make money buying a failing company?

    1.90× 100,000 = 190,000 + 600,000 = 790,000. They got almost their initial investment back. That I’m guessing MGT now has the obligation to pay back. And if MGT succeeds they can still profit big?

    Seems like a nice option. Maybe it is failing. But is Ladd really that stupid? How was he able to get people to fund so much money? Is it really that easy? To get millions thrown at your company?

    Where are you getting your info. What is your source? How do you know DD was bleeding money? How do you know MGT doesn’t have a plan? I’m just wondering are you a psychic ? What’s the lottery numbers for the next 500$ million powerball?

    And where has anyone proved they can run a DFS business? It’s pretty new as far as I see. Looks like a lot of them have failed. Maybe MGT does too. But they aren’t following FD or DK path and aren’t settling for 4th.

    I guess Taylor will be selling his 100k shares soon? I mean mine as well cash now before they bottom out right? I mean I’m sure he likes to light 190k on fire.

    Good to know that Taylor and the guys at cardrunners are scummy people. And will lie to all of us and say anything as long as they profit.

    Curious. Has Taylor or the founders at DD ever prove they would lie in this situation? If so note this so in the future you never do business with them. I mean Ladd may have had other companies fail.

    But pharm companies. lol. Talk about having their hand in politicians pocket. There’s more to running those businesses then just business. Same thing for this and casinos. But seems like maybe they have the right people on their side this time.

    Is MGT sueing Venetian? I could see Adelson being on MGT’s side. And having them go after Ceasers. As he already has stated he would spend whatever possible to make online poker illegal. Ceasers has Games online now. He wants to take them out. And losing this case will prolly send them under. Or will cripple them. They are already down.

    But what my point is. These guys are thinking innovative. And seems like they are trying to do the right thing. Maybe it’s all a scam. You could be right. But any site could be a scam.

    What exactly did he do wrong in those other companies? Why would these people throw millions at a loser?

    No I think all the people at DD are truthful people. I played there a lot over the years. Obviously I trusted them with my money and always would. I don’t trust the new management with my money. I think they were put in a hard situation and sold the company to the wrong people. I was just trying to say be careful, but if you like the product they continue to put out and trust them go for it. As for your other questions you can research them for yourself. I’m not going to have a forum debate with you.

  • SoSoFishy

    @EmpireMaker2 said…

    No I think all the people at DD are truthful people. I played there a lot over the years. Obviously I trusted them with my money and always would. I don’t trust the new management with my money. I think they were put in a hard situation and sold the company to the wrong people. I was just trying to say be careful, but if you like the product they continue to put out and trust them go for it. As for your other questions you can research them for yourself. I’m not going to have a forum debate with you.

    Ok sorry seems there’s a debate going on in this thread. Is this a good move for DD or not. You seem to know it was the wrong move.

    I don’t really care if it was a good move. I’ve never played on DD and wasn’t planning on it anytime soon. I’m still not. But that has less to do with DD and the people as it does with roll restrictions and learning the game.

    But I was around for Black Friday and allow me to offer you some advice. Do not keep large amounts of money online. Keep it in Paypal and go through the hassle. DOJ can seize anything and you never know what anyone is doing.

  • BirdWings

    • x4

      2014 StarStreet MLB Playboy Mansion Finalist

    • MLB 2014 Rankings Leader

    @rotokevin said…

    “Only ftd would turn their best customer into an operating cost”.

    Reminded of this gem by RotoKevin regarding condia. So now he can’t play on DD I presume? Savvy business move. Lol.

  • 00oreo00

    • x3

      2015 DraftKings FFWC Finalist

    • x5

      2014 DraftKings FBWC Finalist

    @SoSoFishy said…

    Ok sorry seems there’s a debate going on in this thread. Is this a good move for DD or not. You seem to know it was the wrong move.

    Basically what I am getting from everyone elses posts. This is a good move for DD management as they now have access to much needed cash that will allow them to continue to operate. Bad move for DD players. I wonder how quickly the player ecosystem will survive once everyone starts withdrawing their money?

  • nbonaddio

    • 2015 FanDuel NBA Playboy Mansion Finalist

    @SoSoFishy said…

    Buy this stock people. If I wasn’t broke I would.

    Are you kidding? LOOK AT THE SEC FILINGS. Telling people to buy the stock based on your completely ridiculous assumptions is borderline negligence.

    How is this a solvent company, by even the most liberal definition of the word? They’ve proven repeatedly that they can’t run a cash-flow positive business. They’re only afloat because they’re a public company.

    As the CEO of a VC-backed company, let me tell you right now that anyone invested in DD is not happy. They’re getting returned cents on the dollar and yes, while it’s not zero, it’s also not something their LPs will celebrate at all and will likely result in a moratorium from that fund so far any social games, be it sport or otherwise. It’s good for the founders – sort of – and I’m happy for them as it seems this was their only move.

    Using the line of logic that if you believe that the people from DD were trustworthy then there’s no reason to bash this deal is absolutely ridiculous. What are they going to do – say that MGT sucks when they were their only lifeline? I would pretty much guarantee you there’s a non-compete and a non-disparage in place, if not a complete gag order.

    And access to capital? What capital? MGT’s source of capital is the public; where do you think the stock is going to go with how their financials look? Do companies that report quarter after quarter of disastrous losses make good investments in the public or private markets? Why would you have any reason to believe that MGT can operate anything based on their history?

    Either way, the amount of shilling you’re doing here on behalf of MGT is truly ridiculous. You’re trading in assumptions of their good intentions and potential for future success, I’m trading in actual numbers; their SEC filings indicate a failing company that is ridiculously overpaying their executives, makes disastrous transactions, and is only alive through a combination of PR-fed pumping, message board shilling, and people who apparently cannot understand that businesses that spend $5 to make $1 will not be around very long.

    I mean, seriously. I can’t fathom that you actually in your heart of hearts really believe what you wrote. Take a look at their quarterly and yearly losses, then what the executive salaries are, and then ask yourself if those are the hallmarks of a company interested in delivering value to share holders.

  • BirdWings

    • x4

      2014 StarStreet MLB Playboy Mansion Finalist

    • MLB 2014 Rankings Leader

    @00oreo00 said…

    Basically what I am getting from everyone elses posts. This is a good move for DD management as they now have access to much needed cash that will allow them to continue to operate. Bad move for DD players. I wonder how quickly the player ecosystem will survive once everyone starts withdrawing their money.

    I think you are slightly off oreo. DD sold their company so FTD and MGT owns them now. The founders of DD will have little to no control over DD operations now but the operations guys will stay on.

    They say it will be business as usual for DD but we all know how that goes with new management at the top. Especially MGT management.

  • SoSoFishy

    @nbonaddio said…

    Are you kidding? LOOK AT THE SEC FILINGS.

    How is this a solvent company, by even the most liberal definition of the word? They’ve proven repeatedly that they can’t run a cash-flow positive business. They’re only afloat because they’re a public company.

    As the CEO of a VC-backed company, let me tell you right now that anyone invested in DD is not happy. They’re getting returned cents on the dollar and yes, while it’s not zero, it’s also not something their LPs will celebrate at all and will likely result in a moratorium from that fund so far any social games, be it sport or otherwise. It’s good for the founders – sort of – and I’m happy for them as it seems this was their only move.

    Either way, the amount of shilling you’re doing here on behalf of MGT is truly ridiculous. You’re trading in assumptions of their good intentions and potential for future success, I’m trading in actual numbers; their SEC filings indicate a failing company that is ridiculously overpaying their executives, makes disastrous transactions, and is only alive through a combination of PR-fed pumping, message board shilling, and people who apparently cannot understand that businesses that spend $5 to make $1 will not be around very long.

    Every finance class I’ve ever taken, every year I spent on Wall Street leads me to believe MGT will be bankrupt for the next DFS company raises a single dollar from a reputable VC or PE firm. When – not if – it does, you had better hope that they’ve got the reserves to pay out the users or else things are going to get real bad, real quick.

    I mean, seriously. I can’t fathom that you actually in your heart of hearts really believe what you wrote. Take a look at their quarterly and yearly losses, then what the executive salaries are, and then ask yourself if those are the hallmarks of a company interested in delivering value to share holders.

    Well maybe I should add I’ve never purchased a stock in my life. I said I like their moves. As a company seems great. Personally no I wouldn’t buy others sites I’d build the best one.

    I don’t know about SEC filings. I promise you if I looked at them I wouldn’t know what to make of them.

    But what I do know is all that school you took. I don’t think it applies to the online market. I think you can do things online with money you could never do in person.

    I also think MGT is setting up for the future. I think they are spending 5$ to make 1$ in the short term. But see that in the future they will make money.

    I was always told it takes 5 years to see profit from most business plans? Were the stock holders looking for a quick flip?

    How do you know what the stock prices will be? What if they win this law suit? What will the stock prices be?

    I want to make it clear. I am not supporting MGT. I am of great support that they are trying to be innovative and make the right moves.

    Do I think hiring one of the best DFS players to advise them is a good move? Yes I do. I think FD and DK should look to do the same. Because then they will know what we are looking for as DFS players.

    The fact that exec heads come here to read our thoughts. I mean damn could you imagine? Tippy pointed out how does that guy have time?

    Well we are his customer. And he gets to see our feedback in real time. How long did it take for sex offender to be fired once it made news here?

    I don’t know him personally. And I would buy into any company or person pulling these moves. I know Card Runners was very successful.

    If they keep their shares. Then I think the ex founders believe in MGT. And if they believe in MGT. I don’t know.

    No offense. But I will trust the logic that they like the business plan. I respect the DD founders and I respect their knowledge.

    Now could this all be a giant scam? Sure. Could MGT go under. Of course theres that chance. I think they have the best chance of over powering the Big 2 at this point. What if they buy DS next?

    Would a DS DD merge be bad for the DFS industry?

    Also what do you mean spend 5$ to make 1$ when have they done this? What is your math based on?

    Obviously if they plan on doing this for too long no they will not be around. I just don’t think they plan on doing that for too long. I believe they have a plan.

    You have heard the term it takes money to make money? That everything isn’t always as it appears looks can be deceiving”

    I was pointing out the reasons why Tippy was saying it was bad. Easily seemed like it could be great. It’s either STUPID or Genius. I hope as a DFS player its the latter.

    If you guys believe they are cancer. Then I guess pull your money out. I think you should give them a chance. They have a lot of people employed now.

    They just bought a great product. If everyone withdraws yes that will hurt them. But why do you want to hurt them so bad?

    The CEO is here looking for advice to help give you what you want.

    Do you think Ladd wants to fail? Do you believe that is his goal? I do not think anyone sets out to fail. I believe he wants to run his first successful business.

    He’s making move none of the others CEO’s have the balls to make. This is good for us. I believe that and I hope it forces and strong arms the others to do the same and take notice.

    I hope good comes from this. This can very much turn out to be a good thing and yes we have a lot of influence on that.

    If you want to link me to a webpage I’ll read what you’re trying to point out. Because I honestly have no clue. But I don’t know anything about a pharmaceutical business and don’t get how it translates to here.

    I think if he listens to us. He listens to Condia and listens the DD people. I think he has a hell of a supporting cast with very intelligent people.

    Intelligent people + Money usually turns out good right?

  • 00oreo00

    • x3

      2015 DraftKings FFWC Finalist

    • x5

      2014 DraftKings FBWC Finalist

    @BirdWings said…

    I think you are slightly off oreo. DD sold their company so FTD and MGT owns them now. The founders of DD will have little to no control over DD operations now but the operations guys will stay on.

    They say it will be business as usual for DD but we all know how that goes with new management at the top. Especially MGT management.

    Yea sorry I meant DD employees not DD management/investors. Me watching Shark Tank does not equate to actual business knowledge. nbonaddio’s analysis is much more insightful.

    @nbonaddio he believes what he writes. Definitely not trying to mislead anyone.

  • nbonaddio

    • 2015 FanDuel NBA Playboy Mansion Finalist

    @SoSoFishy said… Intelligent people + Money usually turns out good right?

    I don’t know any of the MGT people personally. Frankly, if I were them, I’d be more concerned with the fact that in 2012, they took a loss of $4.5M on $400k of revenue and that in 2013, they took a loss of $9.3M on $396k of revenue.

    You can be as confident as want, but realize that everything you’re saying boils down to “I think they can do it” whereas the actual nuts and bolts of their business point to a company that will be going bankrupt.

    Let me repeat it again for emphasis: yearly revenue of $396,000; yearly operational cost of $9,349,000.

  • SoSoFishy

    @00oreo00 said…

    Yea sorry I meant DD employees not DD management/investors. Watching Shark Tank does not equate to actual business knowledge. nbonaddio’s analysis is much more insightful.

    @nbonaddio he believes what he writes. Definitely not trying to mislead anyone.

    I don’t think the founders are leaving this business. I think they will be back very quickly. Unless they are blowing smoke up all our ass. I just don’t think they are. That doesn’t seem like the Card Runners I know. But I wouldn’t say never is never.

    I know what the SEC is. First when it comes to money. Would the CEO always be in charge? Would he not have people working for him or giving him advice? Would a CEO be blamed for hiring a bad attorney who gave him bad legal advice?

    I’m just saying I’m not sure you should always use someones past failures as proof of what happens in the future. Do you know for sure he hasn’t learned from his mistakes?

    Do you really this Ladd is that type of person? I would just need more than some legal paperwork to determine that. I think he would write whatever the attorney writes for him to best protect himself as he should.

    Also Ladd has been messaging players. Asking for advice. Wanting to learn about this industry. He’s willing to hear us out.

    How many CEO’s with money are willing to do that? Fan Duel sure as hell isn’t. DK doesn’t seem to be either.

    I for one love the Idea that the big boys are here to listen to us. How is that bad for us? Please don’t send these types of people away. That’s not good for us.

    Stop attacking him. Why don’t you make a new thread. And ask him questions. See what he gives you. If you want to see what he has to say Tippy pick up the mans phone call. He is not going to post his business plan on a public forum.

    I may not have a degree but that seems like common sense. If this is all an act then shame on me. But it really doesn’t effect me one way or another. I would never keep large amounts of money on any site. I don’t give a shit who owns the damn thing.

    Futhermore I don’t keep more on a site than I can afford to lose. All my money on sites are seen as investments. If the site goes under and I lose a few hundred. I mean yea I’m pissed. I wish I could have avoided it. But I don’t think we will have a problem.

    If he’s under investigation from the SEC in fact. I think you can argue hes gonna be on his best behavior. Unless hes an idiot. Which again. I’m not saying it can’t or hasn’t happened. But are millionaires likely to throw millions at an idiot with a bad business plan?

    If so then please show me the way. I have tons of crap plans.

  • BirdWings

    • x4

      2014 StarStreet MLB Playboy Mansion Finalist

    • MLB 2014 Rankings Leader

    How much is MGT and Ladd paying you Fishy to write this babble?

    Here are the concrete numbers again via documented filings…

    Yearly revenue: $396,000
    Yearly operational cost: $9,349,000

    There is a reason they are down 35-40% on their stock this year.

  • nbonaddio

    • 2015 FanDuel NBA Playboy Mansion Finalist

    @BirdWings said…

    How much is MGT and Ladd paying you Fishy to write this babble?

    Here are the concrete numbers again via documented filings…

    Yearly revenue: $396,000
    Yearly operational cost: $9,349,000

    There is a reason they are down 35-40% on their stock this year.

    Not to mention his salary, nearing $500k. He’s paying himself nearly a half million per year to run a company that lost $9M.

    Companies interested in long-term success don’t do that.

  • fishcakeking

    FCK

    The future of large scale dfs is at a turning point. 2013 NFL season could have been the peak of the industry.

    I don’t think you will see anymore one upsmanship like that again.

    FCK

  • Ravenfan

    This might explain why customer service has dropped at DD, there were no large contests for opening day, and no reload bonuses recently. Sounds like DD was having some major financial issues. Hopefully MGT purchasing them will help, as I will admit that I like their interface more than many other sites.

  • chacha59

    DD Give them a lot of credit for running a mom and pop store for as long as they have. Incredible job working with as small as staff as they have and putting out a very competent product.

    Great looking site that no one can argue.

    In the right hands could compete with the Walmart’s of the Fantasy World.

    Unfortunately when you come into the court room with dirty hands …………. So who you going to buy next? I smell Canadian Bacon!

  • jbergey

    Such doom and gloom in this thread.

  • Ross

    A Fox station in New Orleans (and many others) have this press release about this here. http://www.fox8live.com/story/25127935/mgt-acquires-draftdaycom

    Here is the text:

    MGT Acquires DraftDay.com
    Transforms Company into a Top 4 Daily Fantasy Sports Provider

    HARRISON, N.Y., April 1, 2014 /PRNewswire/ — MGT Capital Investments, Inc. (NYSE MKT: MGT) announced today that it has entered into an asset purchase agreement with CardRunners Gaming, Inc. to acquire the DraftDay fantasy sport business and software platform. MGT will pay $600,000 in cash and approximately 100,000 shares of common stock to acquire the DraftDay assets. The transaction is expected to close within one week.
    DraftDay operates one of the industry’s largest and most respected daily fantasy sports wagering sites, ranking fourth highest among competitors in the most recent Alexa reports. DraftDay is also a leader in the popular quick-pick style of skill-based fantasy sports gaming. Andrew Wiggins, co-founder of DraftDay stated, “We have worked tirelessly to build an outstanding product and loyal player base. With MGT’s support, DraftDay will have greater resources to grow this business to new heights. Our employees look forward to making MGT the market leader in daily fantasy sports.”

    Robert Ladd, Chief Executive Officer of MGT, summarized today’s news, “This acquisition represents a unique financially compelling opportunity and tremendous complement to our online gaming businesses. DraftDay will elevate our fantasy sports segment to an entirely new level. We are very pleased to welcome the players and employees of DraftDay.”

    Added Robert Traversa, MGT’s Chief Financial Officer, “Combined with the recently initiated joint venture with Vegas Insider, we expect that the acquisition of DraftDay will be accretive to our operating results, with MGT Sports projected to become cash flow positive by yearend.”

    About MGT Capital Investments, Inc.

    MGT and its subsidiaries are engaged in the business of acquiring, developing and monetizing assets in the online and mobile gaming space, as well as the casino industry.

    Subsidiary MGT Studios is publisher of social games and real money games of skill, and will launch www.MGTplay.com and SlotChampâ„¢ in 2014.

    MGT Gaming, a majority owned subsidiary, owns U.S. Patents Nos. 7,892,088 and 8,500,554 relating to certain casino slot machine systems and has filed patent infringement lawsuits against WMS Gaming (a subsidiary of Scientific Games Corporation), and others.

    The Company also owns a majority interest in FanTD LLC, the operator of FanThrowdown.com, one of the leading online daily fantasy sports wagering websites. Another majority owned subsidiary, MGT Interactive, owns REAL DEAL POKERâ„¢, an innovative online poker technology with a patented card shuffling system, allowing for regulatory transparency and auditability, and a higher level of realism.

  • maturin

    EmpireMaker2 said…

    You think being a patent troll is worth anything? The Supreme Court and every court have been all over patent trolls recently trying to shut this practice down entirely. It’s all a cover for buying time. Where or when have MGT at any point proven they have competent management to run a dfs site or any business?

    In this thread this just stands out to me.
    Makes too much sense unfortunately.

  • JDub07

    @WhiskeyTavon4 said…

    I dont understand. Condia works for Fan Throwdown. Fan Throwdown owns Draft Day. Condia played on Draft Day last night. So not only can this guy get FanDuel to adjust his lineups but he can work for a company and play at the site that company owns. Seems fair.

    QFT

  • kirklandguy

    Condia works for FanThrowDown. Draft Day is being bought by MGT, FTD’s parent company. Depending on how all of the arrangements are done, Condia may not actually work for the same entity that will own DraftDay.

    Also, the deal has not closed yet, so DraftDay is still technically independent.

    EDIT: Obviously it’s shady after the deal closes, but if he is only signed by FTD, and DD runs as a separate subsidiary after the deal closes, well…it may not be ethical, but might still occur.

  • stlcardinals84

    Leading RG Analyst

    • 2018 DraftKings FBWC Finalist

    • 2018 DraftKings FBBWC Finalist

    Not to add to anything that’s already been said – but here’s the part that makes me cringe.

    FTD goes out and contracts with Condia/Lucror for the specific purpose of improving their interface, etc…

    Now we can all see that eventually FTD will combine its operations with DD and use DD’s interface. That’s going to happen at some point.

    Therefore, what becomes of the Condia/Lucror thing? Nothing? They just removed their top players and got nothing in return?

    This is all just so bizarre and seems so haphazard.

  • Superrfly

    @SoSoFishy said…

    Well maybe I should add I’ve never purchased a stock in my life. I said I like their moves. As a company seems great. Personally no I wouldn’t buy others sites I’d build the best one.

    I don’t know about SEC filings. I promise you if I looked at them I wouldn’t know what to make of them.

    But what I do know is all that school you took. I don’t think it applies to the online market. I think you can do things online with money you could never do in person.

    I also think MGT is setting up for the future. I think they are spending 5$ to make 1$ in the short term. But see that in the future they will make money.

    I was always told it takes 5 years to see profit from most business plans? Were the stock holders looking for a quick flip?

    How do you know what the stock prices will be? What if they win this law suit? What will the stock prices be?

    I want to make it clear. I am not supporting MGT. I am of great support that they are trying to be innovative and make the right moves.

    Do I think hiring one of the best DFS players to advise them is a good move? Yes I do. I think FD and DK should look to do the same. Because then they will know what we are looking for as DFS players.

    The fact that exec heads come here to read our thoughts. I mean damn could you imagine? Tippy pointed out how does that guy have time?

    Well we are his customer. And he gets to see our feedback in real time. How long did it take for sex offender to be fired once it made news here?

    I don’t know him personally. And I would buy into any company or person pulling these moves. I know Card Runners was very successful.

    If they keep their shares. Then I think the ex founders believe in MGT. And if they believe in MGT. I don’t know.

    No offense. But I will trust the logic that they like the business plan. I respect the DD founders and I respect their knowledge.

    Now could this all be a giant scam? Sure. Could MGT go under. Of course theres that chance. I think they have the best chance of over powering the Big 2 at this point. What if they buy DS next?

    Would a DS DD merge be bad for the DFS industry?

    Also what do you mean spend 5$ to make 1$ when have they done this? What is your math based on?

    Obviously if they plan on doing this for too long no they will not be around. I just don’t think they plan on doing that for too long. I believe they have a plan.

    You have heard the term it takes money to make money? That everything isn’t always as it appears looks can be deceiving”

    I was pointing out the reasons why Tippy was saying it was bad. Easily seemed like it could be great. It’s either STUPID or Genius. I hope as a DFS player its the latter.

    If you guys believe they are cancer. Then I guess pull your money out. I think you should give them a chance. They have a lot of people employed now.

    They just bought a great product. If everyone withdraws yes that will hurt them. But why do you want to hurt them so bad?

    The CEO is here looking for advice to help give you what you want.

    Do you think Ladd wants to fail? Do you believe that is his goal? I do not think anyone sets out to fail. I believe he wants to run his first successful business.

    He’s making move none of the others CEO’s have the balls to make. This is good for us. I believe that and I hope it forces and strong arms the others to do the same and take notice.

    I hope good comes from this. This can very much turn out to be a good thing and yes we have a lot of influence on that.

    If you want to link me to a webpage I’ll read what you’re trying to point out. Because I honestly have no clue. But I don’t know anything about a pharmaceutical business and don’t get how it translates to here.

    I think if he listens to us. He listens to Condia and listens the DD people. I think he has a hell of a supporting cast with very intelligent people.

    Intelligent people + Money usually turns out good right?

    Clearly as a person who has never been involved in the stock market, you don’t understand the lengths upper management of small inefficient companies will go to keep the paychecks rolling into their own bank accounts.

    Let’s see how much more “Goodwill” and “Intangible assets” they book with this purchase to make the balance sheets look pretty. They already have over half their total assets marked that way.

  • bripc23

    2013 PFBC Finalist

    @nbonaddio said…

    Not to mention his salary, nearing $500k. He’s paying himself nearly a half million per year to run a company that lost $9M.

    Companies interested in long-term success don’t do that.

    To be fair many many successful companies have had financials like this early in their life cycle

  • X Unread Thread
  • X Thread with New Replies*
  • *Jumps to your first unread reply

Subforum Index

RotoGrinders.com is the home of the daily fantasy sports community. Our content, rankings, member blogs, promotions and forum discussion all cater to the players that like to create a new fantasy team every day of the week.

If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2537) (IL). Gambling problem? Call 1-800-GAMBLER (NJ/WV/PA/MI), 1-800-9-WITH-IT (IN), 1-800-522-4700 (CO), 1-800-BETS OFF (IA), 1-888-532-3500 (VA) or call/text TN REDLINE 1-800-889-9789 (TN).