Fantasy football addicts now have another outlet for their pigskin fever, thanks to a new Web site created by a group of Penn Staters.
Justin Goldman, Class of 2005, has been making a business of Internet start-ups since founding Lionmenus while he was a student at University Park.
It turns out Lionmenus was just the start of Goldman's Internet empire. The alumnus -- along with the help of $25,000 in seed money from Dreamit Ventures -- launched a new Web site Sept. 15, marking his first foray into the fledgling industry of social gaming.
The website, Fangamb.com, aims to combine the rivalry seen in private fantasy sports leagues with virtual sports betting, Goldman said.
Players are given a virtual bankroll of $25,000 with the goal of adding to it by making straight bets, teaser bets and parlays. Currently, betting is limited to NFL and NCAA football games, but baseball, basketball and other sports should be added by next year, Goldman said.
Players are encouraged to create their own leagues with friends to enhance the sense of competition and camaraderie.
"It's a group of friends coming together and forming a league but substituting betting for fantasy football," Goldman said.
Unfortunately, an addictive Web site does not always translate into revenue for the creators.
"Look how long it's taken Facebook to actually make a profit," said Penn State entrepreneurship professor Anthony Warren.
Warren cites the social networking site as an example because the founders were unable to charge users and also unable to make money from advertising until the Web site had millions of users.
"It's kind of an art rather than a science, generating buzz," Warren said.
But as Goldman's former professor, Warren said he was sure Goldman would someday make it big.
Some companies have been very successful using the "freemium" model -- offering a basic service for free and charging for premium membership.
Zynga, the company that created the games Mafia Wars and FarmVille, which boasts 11 million players on Facebook, currently dominates the brand-new industry of social gaming, based on the freemium model. The industry generates revenue by charging a fee to premium users, a small percentage of the player base that is willing to pay actual money for in-game perks, Goldman said.
The three founders remain upbeat about their chances for success using the freemium model only a few weeks after launching Fangamb.com.
"I think a key point is just how many services there are for entrepreneurs right now," said Robert Shedd, Class of 2007 and one of the Web site's founders. "You can do so much with so little."
Shedd's enthusiasm is backed by interest from students on campus.
"I love sports and love having bragging rights over my friends," Jordan Chodes (freshman-division of undergraduate studies) said.
