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April 22, 2013 /PRNewswire/ -- MGT Capital Investments, Inc. (NYSE MKT: MGT), announced today that its wholly owned subsidiary, MGT Sports, Inc., has reached an agreement to acquire a controlling interest in FanTD LLC, marking the Company's initial venture in the online and mobile gaming and wagering space.
On its website,
www.fanthrowdown.com, FanTD hosts a socially interactive destination where users can participate in free or real money daily fantasy sports contests. Users select a roster of athletes across all popular sports, and winnings are determined by the same-day performance of these rosters. Daily fantasy sports compress the betting timeframe of traditional fantasy sports from multi-month seasons into 24-hour periods. FanTD generates revenue through a rake of the total amount bet.
Commenting on the announcement,
Robert Ladd, MGT's President and CEO, stated, "It is hard to overstate the potential we see in legal online gambling, both now and in the near future, as states continue to relax prohibitions in pursuit of tax revenue. Betting on fantasy sports is legal in nearly all states and has a preferential carve-out on the Federal level under the Unlawful Internet Gambling Enforcement Act of 2006. Today's announcement is part of MGT's comprehensive strategy to add other games of skill over the next several months, with an emphasis on mobile applications and secure technologies. We look forward to providing investors an update via conference call within the next two weeks."
As reported in the Company's Annual Report Form 10-K dated
March 29, 2013, for the period ending
December 31, 2012, MGT has a debt-free balance sheet with approximately
$5.5 million of cash; as of
April 16, 2013, MGT has 4.5 million common shares outstanding, plus 172,517 preferred shares (convertible into common stock on a one-for-one basis). Subject to customary closing conditions, including NYSE MKT approval, the Company expects to issue 627,500 shares of restricted common stock plus
$200,000 in cash to acquire a 65% ownership interest in FanTD LLC. Closing is expected within two weeks.
About MGT Capital Investments, Inc. MGT Capital Investments, Inc. (the "Company") and its subsidiaries are engaged in the business of acquiring, developing and monetizing intellectual property rights.
MGT Gaming, Inc., a majority owned subsidiary, owns U.S. Patent No. 7,892,088 relating to casino gaming systems. In November 2012,
MGT Gaming filed a patent infringement suit against Caesars Entertainment Corporation, MGM Resorts International, Inc., WMS Gaming - a subsidiary of WMS Industries, Inc., Penn National Gaming, Inc., and Aruze Gaming America, Inc.
MGT Sports, Inc., a wholly owned subsidiary, has agreed to acquire a majority interest in FanTD LLC, an online daily fantasy sports wagering business.