DraftKings Covers Tab for Rival That Abruptly Closed
BOSTON (AP) — DraftKings is picking up the tab for a rival daily fantasy sports company that left customers and charities hanging after abruptly shutting down.
The Boston-based company says FantasyHub players that transfer their accounts to DraftKings will have access to their full balance for withdrawal.
DraftKings will also cover roughly $100,000 due to nearly 100 charities to which FantasyHub had pledged to donate a percentage of contest fees before closing Feb. 19.
DraftKings officials stress the company isn't purchasing the Austin, Texas-based site or its assets.
FantasyHub is the second daily fantasy site to suddenly close this year amid a growing debate over whether the online games amount to sports betting. Another small operator, FantasyUp, closed in January and was bought by iTEAM Network.