AlphaDraft To Stop Offering Fantasy Esports As Of October 21st

Posted By Chris Grove on October 18, 2016 - Last Updated on January 22, 2018

AlphaDraft will no longer offer real-money fantasy esports contests as of October 21st.

The announcement was made via an email to customers:

Two years ago, we set out to combine eSports with daily fantasy sports. In February 2015, our team launched AlphaDraft, bringing you daily and weekly fantasy eSports contests. What started with only a few eSports contests expanded along the way and we are very proud of the platform we built. However, as we continue to evaluate the eSports landscape, we are announcing today that we have made the difficult decision to stop offering fantasy eSports contests on AlphaDraft as of Friday, October 21, at the conclusion of the League of Legends World Championship. You can continue to play contests until this time.

As has always been the case, you can withdraw your funds at any time. Please contact [email protected] if you require any assistance. Thank you for being a part of this journey with us!

Best,

AlphaDraft Team

Site was purchased by FanDuel in 2015

AlphaDraft was purchased by FanDuel in September 2015, just weeks before a series of controversies and legal challenges upended the daily fantasy sports industry.

FanDuel’s purchase came as rival DraftKings moved aggressively into the esports space via sponsorship of multiple top-tier esports organizations.

Those sponsorships were later dropped, although DraftKings continues to offer esports contests.

AlphaDraft outlasted largest competitor

While a number of sites offer some form of fantasy esports, the largest name in the space during 2015 was Vulcun.

Vulcun suspended paid fantasy sports games in January of 2016, but continued to offer some forms of fantasy contests based on an internal Vulcun currency for several months before shuttering entirely in July.

Fantasy esports proved a challenging market

The trajectory of the fantasy esports market was brief and volatile:

  • Both AlphaDraft and Vulcun secured significant funding in early 2015, riding a wave of broader investor interested in daily fantasy sports.
  • Our early tracking of the sites suggested that both were acquiring users at a rapid clip on a relatively modest marketing budget. While player values at DFES sites seemed quite lower (due largely to low event velocity) than at DFS sites, player acquisition costs for DFES operators appeared to be a small fraction of similar costs for DraftKings and FanDuel.
  • DraftKings and FanDuel brought their marketing war to esports around September 2015, raising the prospect of a significant injection of marketing funds and mainstream exposure for the vertical.
  • DFES was then caught in the undertow of the legal, legislative, and cultural push back that paralyzed the DFS industry starting in October 2015.
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