SinglePoint, a mobile marketing and payment technology company, is entering the fantasy sports market.
The company announced last week that it had signed a letter of intent (LOI) to acquire an ownership stake in daily fantasy sports company GoDraft.com, which allows players to win cash or credit on a range of sports including NFL, NBA, MLB and PGA.
According to the LOI, SinglePoint will buy out the daily fantasy sports company using “cash and restricted common stock. SinglePoint said GoDraft is the first of the many “contenders” that the company has identified for its DFS rollup initiative.
Founded in 2013, Hawaii-based GoDraft features “the only friends and private league features found in the daily fantasy sports industry,” allowing players to play either in private matches with family and friends or join the website’s public games.
“GoDraft is a fantastic company. There are over 2,000 unique members and they also have the only friends and private league features in the daily fantasy sports today, allowing you to play against people you know easier than ever before. They are a great up and coming brand with tremendous upside,” SinglePoint CEO Greg Lambrecht said in a statement.
SinglePoint is a full-service mobile technology and marketing provider, which provides solutions allowing its clients “to conduct business transactions, accept donations, and engage in targeted communication through mobile devices.”
Incidentally, SinglePoint’s entry to the DFS market came at a time when a major payment processor announced that it will no longer handle payments for daily fantasy sports operators. Last week, Vantiv informed its DFS clients—including market rivals DraftKings and FanDuel—that it will “suspend all processing for payment transactions” for DFS in the United States starting Feb. 29.
The news didn’t come as a surprise, as Vantiv had expressed its unease over the potential risk of processing DFS transactions in the state of New York after Attorney General Eric Schneiderman handed DFS operators a cease and desist order. Last January, a confused Vantiv asked the New York courts to make an official stand on the legality of its DFS activities.
