No House Advantage attempted to sell its daily fantasy sports operation earlier this year, a consultant asked to facilitate the transaction told LSR.
Consultant Larry Everling told LSR on Tuesday that he was approached to find a buyer for NHA, which is facing multiple customer complaints over allegedly withholding funds.
However, after only a couple of weeks of exploration, selling the daily fantasy sports operator quickly proved to be a futile endeavor for Everling.
No House Advantage sale flops quickly
The sale attempt, which featured an investor deck shown to LSR, came at the same time Bally’s shut down daily fantasy sports app Monkey Knife Fight in late February.
No House Advantage was hoping to fetch between $10 million to $15 million, Everling said.
Capital management groups, however, told Everling that number was “laughable” given MKF did not even get $5 million.
Details of investor deck presentation
No House Advantage had grand plans, according to an early March investor deck obtained by LSR. The DFS operator hoped to enhance its platform, scale customer acquisition, and partner with a sportsbook operator.
A chart of key team members was topped by majority stakeholder Corey Hawk of Corstone Capital, and NHA founder and CEO Kevin Koeppel. Both have not responded to LSR requests for comment.
Its mission statement reads:
Disrupt the sport betting industry by offering both peer-to-peer PICK ‘EM contests where users play against each other for large prize pools & VS THE HOUSE parlays where users pick 2-5 player props for a shot to 21x their bet against the house
Stats from NHA investor deck
The company said it had 14,000 unique depositors, while taking 2,000 daily bet slips and $30,000 in handle per day.
In February, NHA said it acquired 4,000 customers (at $150 cost per depositor), three times more than any prior month. It also earned 20% profit margins.
Monthly operating expenses totaled $142,000, including $110,000 for payroll.
Players upset at No House Advantage
Customers have expressed frustration with NHA via social media. They have not been able to access their money for weeks, with no clear path for that to be resolved.
No House Advantage recently switched its Twitter account to private, and has not responded to multiple LSR requests for comment.
The support team sent an apology email to customers last week that said a resolution was expected “within the next 7-14 days.”
Vendors left out on payment as well
A source familiar with NHA believed the operator was updating its backend. Yet its future plans and financials are unclear, and company representatives did not respond to LSR attempts for comment.
One vendor told LSR that it is still owed money from its NFL agreement with NHA from last year. That partner remains out $40,000.
No House Advantage by state
No House Advantage said it was active in 25 states, with Florida, California and Texas (all unregulated states) being its three most prominent jurisdictions.
NHA had license approvals pending with Virginia and Maryland expected in Q2 2023.
There also were five new submissions for Q2:
- Louisiana
- Mississippi
- Minnesota
- New Jersey
- Tennessee
