360° Coverage : Vault-Like Services Could Be Next Fantasy Sports Success Stories

2 Updates

Vault-Like Services Could Be Next Fantasy Sports Success Stories

Apr 20 2014, 10:54am CDT | by

Billions of dollars are being exchanged among fantasy sports participants, which has led to the rise of subsectors within the fantasy gaming industry.  The most well-known subsector is the rapidly...

Filed under: news

 
 
 

19 weeks ago

Vault-Like Services Could Be Next Fantasy Sports Success Stories

Apr 20 2014, 10:54am CDT | by

Billions of dollars are being exchanged among fantasy sports participants, which has led to the rise of subsectors within the fantasy gaming industry.  The most well-known subsector is the rapidly rising daily fantasy gaming group of entrants, with companies like MGT Capital Investments, Inc., FanDuel and DraftKings fighting for supremacy and more recently threatening legal action to curb certain advertising techniques.  The fantasy gaming industry has also experienced the entry of insurance companies seeking to offer services that protect fantasy owners against catastrophic injuries to key pieces of their teams.  Finally, a vault-like subsector has developed, which seeks to serve as a sort of escrow for fantasy sports participants who no longer wish to use services such as PayPal to exchange fees and leave all the money in the hands of commissioners who lack the true capacity and wherewithal to keep the money in a trust account.

There are not many options when it comes to a fantasy-specific escrow to accept and hold entry fees and then disburse said fees to the winners at the conclusions of the games.  The first known entrant into this unique area is LeagueSafe, which was created in 2008 by current Fantasy Sports Trade Association President Paul Charchian.  The service holds users funds in a secure account until the end of a “fantasy season,” when the commissioner of the fantasy league then allocates the winnings.  The concept is not entirely novel; however, it is difficult to find many others who have attempted to duplicate or further develop the concept.

LeagueSafe’s main competitor appears to be a start-up called FanHold.¹  FanHold’s founder says that since FanHold’s launch, 98% of league members have paid requested league fees within days, resulting in league commissioners spending more time on strategy and less on follow-up and hassling participants to pay.

“I was tired of spending my time to collect money from friends and with Fanhold people can pay in seconds,” said Michael Bivens, CEO of Fanhold to FORBES.  ”The social aspect of the site is designed for our members to be able to chat with other league members and ultimately have fun connecting with people all over the nation within their league.”

Once a fantasy league is set up on the FanHold system, the league’s commissioner sends an e-mail to the active league members, who then create their usernames and passwords through a link provided in an automatically generated email.  The commissioner can choose the final date for league participants to sign up and make a payment in order to remain as active participants.  Providing the commissioner the flexibility to pick the end-date for participation and payment oftentimes creates a sense of urgency.  FanHold has also built social features into its service so that members can easily interact among each other prior to and during league play.

“Fanhold is an easy, secure way to hold and collect money for our many sports tournaments we do monthly,” added the owner of TerezOwens.com, a popular sports gossip and sports celebrity rumors website.  “It has even saved a couple relationships in our fantasy football league . . . no more trying to collect from buddies.”

An unfortunate common theme with fantasy sports is that arbitrarily instituted commissioners are deterred from desiring to lead fantasy leagues based on the difficulty of collecting and disbursing league-related fees.  Further, fantasy players are often slow to throw money into the pot, especially if no one else is ponying up the requisite amount of cash.  Enter vault-like services such as LeagueSafe and FanHold — a commissioner’s dream concerning fantasy sports, March Madness pools or any other contest that benefits from a viable payment solution.  An escrow may be necessary in an industry where billions of dollars are at stake.  Said escrows stand to carve out their piece of the fantasy sports pie if their services are effective and trustworthy.

¹ Disclosure: The author has served as a consultant for FanHold and has a small ownership interest in the company.

Want to learn more about the business of sports? Order my book How to Play the Game and follow me on Twitter.

Follow @DarrenHeitner

 
Update
2

2 days ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 days ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" hi ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Nigeria to get Japanese drug for Ebola treatment
Abuja, Sep 2 (IANS) Nigeria will soon get a Japanese drug to treat Ebola, the country's Health Minister Onyebuchi Chukwu said Monday.
 
 
Japan to aid connectivity upgrade in northeast India
Tokyo, Sep 1 (IANS) India and Japan Monday decided to strengthen cooperation for improving connectivity and socio-economic development in northeastern states of India.
 
 
Three Ebola cases recorded in Nigeria oil hub
Abuja, Sep 1 (IANS) At least three cases of Ebola virus disease (EVD) have been recorded in Nigeria's oil hub of Port Harcourt, where a fatality was confirmed last week, the country's Minister of Health Onyebuchi Chukwu said here Monday.
 
 
India, Japan to elevate strategic partnership
Tokyo, Sep 1 (IANS) Prime Minister Narendra Modi Monday said relations with Japan were of the "highest priority" for his government and announced a slew of initiatives, including turning the strategic partnership into a "special" partnership and a fast-track channel for Japanese investors.
 
 
 

Latest from the Network

Lena Dunham condemns naked photo leak
Los Angeles, Sep 2 (IANS) Actress-writer Lena Dunham has condemned a mystery hacker who leaked nude photographs of celebrities, including actress Jennifer Lawrence. Lawrence hit headlines Sunday when intimate snaps of...
Read more on Celebrity Balla
 
Three children, teacher killed in China school stabbing
Beijing, Sep 2 (IANS) A stabbing spree in a Chinese school has left three children and a teacher dead Monday. Chen Yanfu, 43, who was upset that his daughter was not allowed to register at the school, rampaged through...
Read more on Politics Balla
 
Jennifer Aniston eases exercise regime
Los Angeles, Sep 2 (IANS) Actress Jennifer Aniston, who admits she's "eased up" her workout regime, says it's important to take time off from working hard in the gym to simply enjoy life sometimes. The 45-year-old,...
Read more on Celebrity Balla
 
Nigeria to get Japanese drug for Ebola treatment
Abuja, Sep 2 (IANS) Nigeria will soon get a Japanese drug to treat Ebola, the country's Health Minister Onyebuchi Chukwu said Monday. The drug named Favipiravir and developed by a subsidiary of Fujifilm Holdings in...
Read more on Business Balla
 
Miley Cyrus: The internet is more damaging than drugs
Miley Cyrus thinks the internet ''hurts your brain'' more than drugs. The 21-year-old singer believes social media - such as Facebook and Instagram - causes more damage to your mental health than smoking cannabis. She...
Read more on Celebrity Balla
 
Britney Spears in contact with ex-boyfriend from 6 years ago
Britney Spears is reportedly in contact with her ex-boyfriend from six years ago. The 'Piece of Me' hitmaker only split from her beau David Lucado last week after it emerged he'd allegedly cheated on her and now the...
Read more on Celebrity Balla
 
Joan Rivers may end up 'as a vegetable' or in 'wheelchair'
Joan Rivers' doctors fear she may end up ''as a vegetable'' or ''needing a wheelchair'' after she suffered a cardiac arrest last week. The 81-year-old comedienne's relatives are reportedly preparing themselves for the...
Read more on Celebrity Balla
 
Kate Upton will 'pursue anyone' who shares naked photos of her
Kate Upton's lawyer will ''pursue anyone'' who shares naked pictures of her. Nude photographs of the 22-year-old model were reportedly leaked online after her mobile phone's online storage system iCloud was allegedly...
Read more on Celebrity Balla
 
'Ukrainian conflict has escalated into war'
Kiev, Sep 1 (IANS) Ukrainian Defence Minister Valeriy Geletey Monday said the conflict in eastern Ukraine between government troops and pro-independence insurgents has escalated into a "war". "A great war came at our...
Read more on Politics Balla
 
IS slogan found on school walls in Saudi Arabia
Riyadh, Sep 1 (IANS) Slogans praising Sunni militant group Islamic State (IS) were found on the walls of some schools in the Saudi Arabia capital following Saudi King Abdullah bin Abdulaziz's call for coordinated...
Read more on Politics Balla