MGT sells off daily fantasy sports interests

MGT Capital Investments, which acquired up-and-coming daily fantasy sports operator DraftDay just a year ago for stock and $600,000, has sold the enterprise along with its other daily fantasy sports assets for $7 million to a previously unknown company titled Random Outcome USA Inc.

It is understood that Sportech Digital, a subsidiary of UK-listed Sportech plc, is involved in the partnership and is to manage DraftDay under the new ownership.

In a statement Friday Rich Roberts, president of Sportech Digital, said that a daily fantasy sports business delivered on a business-to-business partnership basis to regulated gaming jurisdictions has considerable potential.

The business-to-business theme of the statement was reinforced by Random Outcome chief exec Curtis W. Krawetz, who said that the DraftDay-Sportech enterprise will create a “dominant” business-to-business presence in the DFS space.

MGT Capital has retained a $3 million equity stake in the business under its new ownership and is optimistic about its prospects.