ALISO VIEJO, CALIFORNIA--(Marketwired - Sept. 20, 2016) - Fantasy Aces Daily Fantasy Sports Corp. (the "Corporation" or "Fantasy Aces") (TSX VENTURE:FAS)(OTC PINK:FASDF) is excited to announce that it has received a temporary permit to allow all residents in the state of New York to play on FantasyAces' gaming platform.
NY TEMPORARY PERMIT
On September 13, 2016, the New York State Gaming Commission ("Commission"), having determined that FantasyAces L.P. ("Applicant") meets each of the requirements set forth in sections 1402 and 1404 of the Racing, Pari-Mutuel Wagering and Breeding Law to hold a temporary permit to offer interactive fantasy sports contests, hereby provides this temporary permit for Applicant to offer interactive fantasy sports contests in New York State until Applicant is registered as an interactive fantasy sports operator which is expected to resolve within the next 90 days.
As previously stated, New York State sets the tone for most others states in evaluating the legal status of DFS and the company believes that this current acceleration of states passing laws in support of DFS will continue this year and well into 2017-18 culminating in approximately 40 states at minimum operating throughout the U.S.
SECOND QUARTER AND FIRST HALF 2016 (January -June 30th 2016) RESULTS:
During 2016, Fantasy Aces continued to expand the depth of its user base and user retention into the ever-growing daily fantasy sports ("DFS") industry. During this period, the Corporation increased its net revenue as a percentage of gross profit, lowered its operating expenses, and ended the month of June with a modest operating profit. The Corporation has remained the number three site through the end of August for the MLB season, behind industry leaders DraftKings and FanDuel and in front of Yahoo amongst others.
HIGHLIGHTS Q2 in $USD
- Gross Revenue of $514,984, 280% increase over Q2 2015
- Prize Payouts of $5,649,000, 240% increase over Q2 2015
- Reduced overlay to 34% of gross revenue compared to 88% for the 2015 period
- Game Entries: 655,270, 230% increase over Q2 2015
- Operating Gross Margins continue to increase when compared to Q2 2015
HIGHLIGHTS 1ST HALF in $USD
- Gross Revenue of $877,796, 283% increase over 2015
- Game Entries of 1,043,731 101% increase over 2015
- Prize payouts of $9,000,000 243% increase over 2015
Historically, approximately 35% of the DFS industry annual revenue happens in the year's first half. As the above highlights show, Fantasy Aces was able to continue to grow at a notable rate in the key industry metrics of gross revenue and prize payouts during this slowest time of year. The Corporation's growth to date through the second quarter indicate a 2016 annual revenue of approximately $3,000,000.
A key to this continued growth is the iOS App that Fantasy Aces launched on May 24, 2016.
The App is available to all for download at: https://appsto.re/us/zKjC_.i
The Corporation's momentum continues into July, August and September, notably in one critical area: Overlay expense as a percentage of gross revenue was only 28% in July and August of 2016; a reduction from 88% in the same two months of 2015. This statistic is one of the most important fundamental measurements of future profitability, and as the Corporation continues to fine-tune its operating expense structure it expects by year-end, 2016 to show a modest Q4 profit.
Fantasy Aces has applied for and been accepted for an OTCQB listing in the U.S. The Corporation currently trades under an OTC Pinks status with a fully transparent market.
"Obtaining a temporary permit allowing NY residents to continue to play on our platform is another milestone for our company" says Tom Frisina, Chairman and CEO of Fantasy Aces. "This not only opens up our platform to many new participants, but it also highlights the growing acceptance of the DFS industry. Our revenue and prize payouts continue to steadily grow year after year and we expect to continue this trend moving forward. I think our upcoming roadshow will be a very important time for us as we feel Fantasy Aces will resonate very well with US investors which bodes well for our shareholders. Our sole focus as a team is to create greater shareholder value and that's exactly what we plan to do well into 2017 and beyond."
Additional information relating to the Corporation can be found on SEDAR at www.sedar.com.
About Fantasy Aces
Fantasy Aces is a leading DFS (Daily Fantasy Sports) site focused on everyday skill-based fantasy sports games. Fantasy Aces has developed proprietary software which allows users to create fantasy teams from the player rosters of actual sports leagues and then use their teams to compete against other users in various categories such as points scored, yards gained, goals, assists or home runs registered, depending on the specific sport. The FantasyAces.com website currently offers daily and weekly skill based fantasy sports games for six major North American sports, including the NFL, NBA, NHL, MLB, College Football and the PGA. Fantasy Aces also offers a variety of entry fee contest options for its members to play, in addition to free roll tournaments to attract new members to the site. Fantasy Aces charges a management fee from all entry fees collected on the website.
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including the impact of general economic conditions, industry conditions, currency fluctuations, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. Although the Corporation believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Corporation does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The offered securities mentioned in this press release will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Trading in the securities of Fantasy Aces Daily Fantasy Sports Corp. should be considered highly speculative.