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Startup Seeks To Monetize The Fantasy Sports Side Challenge

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There exists no lack of season-long fantasy sports offerings, the most popular platforms provided by sites like Yahoo ! and ESPN .  Similarly, daily fantasy operations are plentiful, with FanDuel and DraftKings leading the way.  But is there an opportunity situated somewhere between the two general types of fantasy game-play where a fantasy sports participant can take advantage of both offerings at the same time?  That is the premise of SidePrize, which has a name that somewhat describes its offering -- the creation of side prizes for those engaged in season-long fantasy leagues, but desire the enjoyment of raising the stakes on a week-to-week or day-to-day basis.

The SidePrize solution is to partner with existing fantasy sports platforms to provide new game types, real-money contests and quick payments .  The Atlanta-based start-up launched a couple of days ago, announcing a partnership with RotoWire, which allows SidePrize to be integrated in RotoWire's MLB Commissioner platform.

A SidePrize scenario seems as though it plays out like a side "bet", which occurs quite frequently among participants in head-to-head season-long fantasy operations as is.  A proffered benefit of going through SidePrize for such competitions is that SidePrize guarantees winners get paid in-full and do not have to worry about the collection process.

"We're taking an existing offline behavior online and removing as much friction as possible in the process," explained SidePrize CEO Adam Wexler.  "Currently, friends are talking smack and challenging each other over text, email phone calls or in person leading up to their scheduled weekly match-up. They may agree to it, but it is often a very unofficial agreement.  Then Monday night rolls around and the losers are in no hurry to pay the winners.  At the end of the day, the reason SidePrize is needed is because the winners possess the burden of collecting money from the losers (AKA their friends).  SidePrize ensures the winners get their money, immediately.  As we like to say, SidePrize makes sure winners get paid and friendships get saved."

A user simply submits a challenge to another person within the season-long fantasy structure (starting with MLB through SidePrize's partnership with RotoWire).  The recipient of the notification has an opportunity to accept the challenge or counter with a different prize amount.  As soon as the parties agree on a compensation structure, the SidePrize system debits each player's account.  As soon as a winner is determined, the winning account is credited with the prize.

"We have reason to believe the fantasy side challenge niche within the fantasy sports industry is a multi-billion dollar opportunity unto itself," added Wexler.  "In general, the season-long platforms are serving millions of customers every season, so they don't posses the bandwidth to go as far down the rabbit hole.  SidePrize is building an entire business around this specific niche, but as it stands, we're the perfect compliment to all these platforms."

Darren Heitner is a lawyer and the Founder of South Florida-based HEITNER LEGAL, P.L.L.C., which has a focus on Sports Law and Entertainment Law.