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Walt Disney eyes venture with DraftKings; MGT and Seneca Gaming to launch daily fantasy sports site

TAGs: daily fantasy sports, DraftKings, fantasy sports, MGT, Seneca Gaming, Walt Disney

Walt Disney eyes venture with DraftKings; MGT and Seneca Gaming to launch daily fantasy sports siteWalt Disney Co. is in talk with online fantasy sports site DraftKings about a venture investment that could see the Seattle-based start-up valued at $1 billion.

If such a deal comes to pass, it would give DraftKings new ammunition in its competition with rival FanDuel for new customers, the credibility of membership in the Unicorn Club—companies that have soared to a $1 billion valuation or higher, based on fundraising—and give it an elite media partner ESPN—another property of Walt Disney—in the way that FanDuel counts Comcast and NBC Sports among its investors.

FanDuel is also shopping around a possible large growth funding round—a deal was also described as at “$1 billion or more.”

Meanwhile, DraftDay.com’s owner MGT Capital Investments has partnered with Seneca Gaming Corporation, owned by the sovereign Seneca Nation of Indians, to launch a new daily fantasy sports site for Seneca Resorts & Casino’s three properties – Seneca Niagara Resort & Casino, Seneca Allegany Resort & Casino, and Seneca Buffalo Creek Casino.

In addition to online play, the deal allows for on-property exclusive games including pro and college football, baseball, hockey, golf, and pro basketball, in which players can win cash prizes and other unique offerings.

“We are extremely excited to be the first daily fantasy sports site to be working with the three world class Seneca properties in Western New York – home to some of the most passionate sports fans in the world,” said MGT CFO Robert Traversa.

MGT said that part of the plan also includes integrating the Seneca Players Club program into the platform, allowing members to earn rewards and benefits as they play and the opportunity to win exclusive destination events to be held at Seneca Niagara Resort & Casino.

“Seneca Gaming Corporation has always been focused on providing our guests the best and most exciting gaming and entertainment atmosphere possible,” said Seneca Gaming COO Audrey Oswell. “This agreement with MGT affords guests at our Seneca Resorts & Casinos properties an exciting new experience to enjoy.

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