Amaya Planning Expansion Into Daily Fantasy Sports and Other VerticalsPublished on 2015-03-31 22:57:00
Earlier today, Amaya Inc. (AYA on the Toronto Stock Exchange) reported their Q4 and annual results for 2014.
Unsurprisingly, revenues soared for the company compared to the same quarter in 2013, thanks to their successful acquisition of Pokerstars and Full Tilt Poker. Amaya Inc. reported revenues of $369 million and adjusted net earnings of $86 million for the fourth quarter of 2014, compared to revenues of $37 million and adjusted net earnings of $5 million in Q4/2013.
It's no secret as to what the new owners of Pokerstars and Full Tilt Poker have in store for the company - they have made it very clear that they want to make Amaya Inc. a full-fledged online gaming company that can compete with the likes of William Hill and Bet365. Amaya Inc. continues to roll out their casino products and have said that the launch of a sports betting product is coming soon.
One of the most interesting points from today's earnings report is the fact that Amaya Inc. is also planning on expanding into the daily fantasy sports market. Amaya listed "sports betting, casino, social gaming and daily fantasy sports" as new verticals that they are planning on expanding into in order to "supplement our current growth plans for our core poker business."
The daily fantasy sports business has been growing in leaps and bounds over the past couple of years. The two industry leaders, Fanduel and Draftkings, have both raised tens of millions of dollars in venture capital money. The NBA (National Basketball Association), in fact, has also invested in FanDuel, and both DraftKings and FanDuel have signed multiple deals with professional sports franchises.
In short, Amaya Inc. wants to tap into this growing market, especially given the fact that the poker and daily fantasy sports industries are so similar. Amaya Inc. has a very big hurdle when it comes to attempting to penetrate the DFS sports market, however, as they have not been able to gain access to any markets in the United States as of yet. The United States is where the bulk of the growth in the daily fantasy sports market has taken place.
This is just another interesting development as Amaya Inc. attempts to transform itself into a multi-offering online gaming company.
Shares of Amaya Inc. opened strong on the day before closing down 1.69% to close at $29.70 on the Toronto Stock Exchange.
Source: Yahoo.com - Amaya Posts Record Annual and Fourth Quarter Results for 2014
Filed Under: Poker Room News