Jake Paul-led micro-betting fantasy and sports betting company Betr has agreed to a transaction with defunct fantasy platform No House Advantage (NHA) to acquire its users and transfer account balances after the betting site ceased operations in August this year.
Betr co-founder and CEO Joey Levy, in a statement on LinkedIn, said: “Today, we began emailing former No House Advantage (NHA) users informing them that their account balances will be available at Betr. 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.”
He added: “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 & 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 further informed that pending withdrawals that have already been requested by users from NHA are not included in this transaction and will continue to be processed by NHA, while all other player balances will be immediately available on Betr.
NHA was acquired by Korean private equity firm Corstone Capital in 2022 and shut down in August this year without any warning to its customers. Due to this sudden development, users temporarily lost access to funds in their NHA accounts, which led to many withdrawal requests.
NHA had cited a defraud attempt as the reason for the closing of its fantasy and online betting sites. The company, at the time, stated on its website: “No House Advantage has ceased operations effective immediately. Approximately a month ago, NHA 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 withdrawal.”
Last year, the Pennsylvania Gaming Control Board had fined the operator for $8,000. The fine was imposed for the company’s failure to notify the PGCB of a change of control in its ownership structure that occurred in late 2021.
For its part, Betr is acquiring NHA as it eyes further growth. The company introduced its real money fantasy sports offering Betr Picks in July, which is available in 24 jurisdictions across the United States – including California, Illinois, Massachusetts, Texas, Virginia, North Carolina, and others.
Earlier in July, Betr announced a $35 million round of financing, valuing the company at $300 million pre-money. The company held a set of initial closings for its Series A2 round of financing in Q2 and is scheduled to conduct a final closing in Q3.
