MGT Capital Investments, who recently went all in on DraftDay and FanThrowDown, are planning on bringing a product to the most massive social networking site on the planet, Facebook. It will be a in site game using DraftDay’s already available technology. If you visit dailyfantasylegend.com today you’ll be able to sign up for beta testing of the daily fantasy legend game on Facebook and if you can squint your eyes enough at the blurry screenshot featured on the site you can clearly see what looks exactly like the DraftDay/FanThrowDown lobby page. MGT is looking to launch daily fantasy legend in November and will offer the game as a free to play daily fantasy game available to all Facebook users over the age of 13.
MGT chief executive Robert Ladd is excited about the potential of MGT’s new venture.
“Our goal was to build a great looking and fluid game that is fun to play, while taking advantage of the full range of social tie-ins that experienced gamers expect.” “We are proud of the creative talent of our tech team, having produced what we see as one of the most exciting new offerings for Facebook sports fans and gamers, as well as having created a category-defining product.” Ladd commented.
Daily Fantasy + Freemium = $$$$$$
Daily Fantasy Legend players will be able to create fantasy lineups just like the DFS sites we all play on today. They’ll have all the major sports, NFL and College football, NBA, NHL, MLB and PGA events. Players who wish to enhance gameplay through purchase of in-game currency will have the ability to extend and personalize their individual experience. The payout will be in points to be spent on entry to contests. The pricing for games and in game currency isn’t clear at this stage, but if it’s anything like Candy Crush, people will be paying up instead of waiting for points to regenerate in order to get in on daily contests. Just like the daily fantasy sports market these type of “freemium” games are looking for the small number of users that spend the most. The same as the player with a thousand Millionaire Maker entries, in the “freemium” games world, over 50% of the profits are made from the top 10% of spending users. The two industries are remarkably similar in that most users spend small amounts and most of those users are there for a small amount of time. The biggest spenders, however, keep spending and amass the largest profits for the games developers and investors.
MGT has been aggressively trying to work its way to the top of the daily fantasy sports industry and is poised to do so. This isn’t just a venture to introduce the product to a whole new audience or lure in new users by offering a free to play version of daily fantasy on a easily accessible already popular social networking site, it’s about projected revenue of the product. Ladd did say that Daily Fantasy Legend would broaden the appeal of fantasy sports and further contribute to the already explosive growth of the sector. MGT may have struck gold as it’s combining an industry in daily fantasy that is already growing at a rapid pace and is projected to go well over $100 million in revenue across the major sites. Ladd is looking to capture some of that revenue using the “superior monetization tools offered on Facebook, Daily Fantasy Legend should create meaningful revenue and operating profit for MGT.” In 2012, 27 million users on Facebook purchased over $810 million dollars in virtual currency. The U.S. skill based gaming industry saw revenue of $2.5 billion in 2013, and is projected to surpass $9.0 Billion in annual revenue by 2017.
It seems that MGT has positioned itself for long term success and profit in a cross industry venture. MGT isn’t stopping there either. The introduction of games of skill for money into the marketplace not including sports is also a burgeoning industry. In June of this year MGT has also launched mgtplay, a play skill games for real money website that boasts over 3 million registered users to date. You can enter card and puzzle style games there and win money similarly to a daily fantasy sports site. The skill based gaming for money industry is coming in on all fronts, and it won’t be for just fantasy sports fans anymore. Based on the amount of money spent on in game currency for Facebook, iOS, Android, and other mobile and social platforms, MGT may surpass both Fanduel and Draftkings revenue without actually having the most popular and most played daily fantasy sports site. MGT may be able to push the limits of DFS and force the hand of top two to offer something similar. Look for Daily Fantasy Legend to hit a Facebook near you very soon.