Alphadraft has emailed its users that they will be dropping money based fantasy eSports entirely. The fantasy esports betting website was formed into existence shortly after Fanduel entered the scene with some big ticket sponsorships of a few major teams.
The email states :
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@example.com if you require any assistance. Thank you for being a part of this journey with us!
The website was facing increasingly difficult conditions to operate its services. The regulatory environment around esports betting followed by several laws making it tougher for them to operate definitely narrowed their already thin margins. This has not been stated as the official reason however as Alphadraft have announced their shutdown.
However, fantasy eSports proved to be a challenging market, especially after the legal and legislative challenges that paralyzed the daily fantasy sports industry starting in October 2015—a month after FanDuel purchased AlphaDraft.
In July, Vulcun shut down its fantasy eSports site in favor of Twitch chat games. Considered to be the largest name in the fantasy eSports space, attracted $13.3 million in funding from players and investors looking to cash in on the burgeoning eSports fantasy market.
The company already stopped accepting real-money fantasy wagers on eSports events in January due to regulatory concerns in the United States. Vulcun had to cease operations in Nevada in October 2015 as a result of the state Gaming Control Board’s order that required real-money daily fantasy sports operators to have state gaming licenses.