Startup sports-betting operator Betr has agreed to absorb the customer balances of a now-defunct daily fantasy operation that abruptly closed its doors over the summer, leaving customers in limbo.
Betr CEO Joey Levy said the company has begun to email users of fantasy sports platform No House Advantage (NHA) to inform them that their outstanding balances would be available at Betr.
In an email to users, No House Advantage said Betr had “generously volunteered to take over the active balances of No House Advantage players”.
No House Advantage was a Miami-based daily fantasy sports (DFS) platform that offered peer-to-peer and house-banked pick ’em-style games that have come under criticism over similarities to traditional sports betting.
In July, No House Advantage players began complaining on social media and other platforms that they were unable to access their accounts or obtain withdrawals.
One month later, No House Advantage posted a message on its website that it had ceased operations, stating that the company several weeks earlier “was made aware of what may have been a coordinated attempt to defraud the company via a payment chargeback scheme which has impacted our ability to process withdrawals.”
The company posted a PDF form for players to fill out to pursue withdrawals as part of what it called a “formal withdrawal request process.” The process was put in place “as a safeguard against this scheme and to protect player reserves.”
No House Advantage is licensed or registered in several jurisdictions where fantasy sports contests are expressly regulated, but it has taken steps to surrender several of those licenses, including in Ohio and Pennsylvania.
The company’s website now displays a message that the domain name is parked and available for purchase.
Betr, which offers mobile sports betting in Massachusetts and Ohio, launched its own DFS platform, Betr Picks, in July to offer pick ’em-style contests in 23 states and Washington, D.C.
The move followed the rise to prominence of pick ’em fantasy games, and has since been replicated by fellow sportsbook startup Mojo Interactive, which launched its own fantasy offering earlier this month.
States where Betr Picks is active include notables such as California, Texas, and Florida, where sports betting is currently not offered.
Betr is one of three companies to recently receive a letter from the Florida Gaming Control Commission demanding an immediate halt to pick ’em-style fantasy games.
“As Betr Picks has quickly established itself as a leading fantasy sports operator in record time, we are constantly evaluating ways to continue growing quickly while also doing right by the community,” Levy said in a statement posted to social media platforms on the No House Advantage acquisition.
“Our transaction with NHA is designed to accomplish both of these objectives: 1) to welcome former NHA users to Betr Picks — an already industry-leading product built by the company leading the way in responsible gaming across both the fantasy and sportsbook categories, and 2) to ensure the protection of user balances by enabling folks to withdraw their previously held balances at NHA with no play-through requirement.”
Levy said players who already had pending withdrawals from No House Advantage would not be included in the transaction and would continue to be processed by the defunct company, while all other balances would be immediately available on Betr.