Vulcan, a leader in eSports, has announced via the Vulcun community blog that they will no longer offer paid eSports contests on Vulcun after January 14th. Vulcun says that the cloudy legal landscape has currently made it difficult to continue real money operations.
Vulcun, a leader in daily fantasy eSports, has announced via the Vulcun community blog that they will no longer offer paid eSports contests on Vulcun after January 14th. Vulcun says that the cloudy legal landscape has currently made it difficult to continue real money operations.
Vulcun, which launched in January of 2015, will continue to offer non-paid services including Gold betting, Gold Fantasy Contests, Marketplace, Loot-drop and Jackpot. According to Vulcun, less than 10% of users played real money contests while the remainder of Vulcun’s customers use only non-paid services.
Vulcun is giving real money users until February 5th to withdraw their funds. Any funds left remaining at Vulcun after this date will be converted to Gold, the site’s in-house currency. Any remaining bonuses will expire after this date.
Fantasy eSports has been a growing market of late. The fantasy contests allow to fans of eSports to draft their favorite gamers who play competitive video games such as League of Legends, Counterstrike and DOTA 2. DraftKings and FanDuel have also recently begun offering eSports contests, which may partially explain Vulcun’s actions.
FanDuel acquired AlphaDraft in late September.
In their statement, Vulcun noted that they did not want to continue to operate in a state-by-state manner like their daily fantasy sports cousins.
“We’re eSports fanatics first, and fantasy to us was a way of making eSports more engaging and fun. However the current legal landscape in the United States has made this difficult. Rather than trying to figure this situation out state by state, we’ve decided to focus our energies on things that ALL our users can enjoy vs. those in select geographies. We’re sad to see (paid) fantasy go, but ultimately it allows us to focus on building a better product that serves our mission.”
Over the last few months, state scrutiny has accelerated after the well-publicized DraftKings data leak scandal broke earlier this fall. Nevada and New York are a few of the states that has put the industry under a microscope and subsequently tried to halt the games in their respective states. While some states are attempting to restrict daily fantasy sports sites from operating, other states such as Massachusetts and daily fantasy sports sites have also called for regulating the games which millions of Americans now play.