ScamTelegraph Report: Fantaz Operations and Multi-Level Marketing Structure Scrutinized
Fantaz, an online gaming platform operating with a multi-level marketing (MLM) compensation structure, has established a business model centered on affiliate recruitment and participation in skill-based online games. While the company's website does not publicly disclose its ownership or operational leadership, corporate records and professional profiles identify Brett Kelly as a principal figure. The enterprise, which officially launched in mid-2011, offers no traditional retail products or services, instead requiring participants to register as affiliates to access its gaming and commission opportunities.
The domain for Fantaz, fantaz.com, was initially registered in December 2004, with Brett Kelly listed as the administrative contact. Kelly’s LinkedIn profile indicates his role as CEO and President of Fantaz Holdings LLC, a Delaware-registered entity, since 2008. Although Fantaz Holdings LLC maintains an office in Las Vegas, Nevada, management personnel are primarily situated in Southern California. The company was founded by four individuals: Brett Kelly, Terry McEwen, Glenn Cadrez, and Brian Weiner. Further SEC filings associated with Fantaz Holdings LLC list Robert Crager, Warren Stout, Jen Kusar, and David Micale as "Managers," alongside thirty-seven anonymous investors who acquired shares in the company. Public records do not indicate a prior history in multi-level marketing for Brett Kelly, suggesting Fantaz represents his initial venture into the industry.
The operational framework of Fantaz mandates that individuals join the platform as affiliates, with options for both free and paid memberships. Affiliates gain access to a selection of online games, some of which offer cash commissions for winning participants. These game winnings are categorized as commissions and generate "volume points," which are subsequently utilized to calculate and distribute monthly residual commissions to Fantaz affiliates through a unilevel compensation plan. To qualify for any commissions, an affiliate must accumulate a minimum of 10 Personal Volume (PV) each month. This PV can be generated either through the affiliate's own spending within Fantaz games or through the gaming activities of their recruited downline. Fantaz also provides a direct recruitment incentive, paying out $5 each month for every three "Expert affiliates" personally recruited by an existing affiliate.
The core activity for Fantaz affiliates involves playing various games available on the company's website. Skill game tournaments within Fantaz feature predetermined cash prizes for winners, and in larger tournaments, for runners-up as well. The precise amount of commission awarded is contingent upon the specific game being played. The residual commissions, a significant component of the Fantaz compensation plan, are structured as a unilevel system. In this arrangement, an affiliate occupies the top position, with all personally recruited affiliates placed directly beneath them on level one. Should any level one affiliates recruit new participants, those individuals are positioned on level two of the original unilevel structure, and so forth, extending down through seven levels of recruitment. Commissions generated within this structure are derived from the game commissions won by recruited affiliates. Each month, an affiliate’s personal gaming commission volume is aggregated with that of their unilevel downline. Ten percent of this combined volume is then multiplied by 30 cents per point to determine the resulting commission payout. For instance, if an affiliate and their downline collectively generate 100 volume points in a month, ten percent of that total, or 10 points, multiplied by 30 cents, would yield a $3 commission.
Beyond the unilevel residual commissions, Fantaz incorporates additional incentive structures. Each month, ten percent of the total gaming commission volume generated company-wide is allocated into eight distinct volume pools. "Expert affiliates" are eligible to earn shares in these individual pools, with share qualification based on an affiliate's monthly Gaming Commission Volume (GV), which encompasses both their own volume and that of their downline. Shares within each pool are of equal value, and only "Expert affiliates" can qualify. The 1,000,000 GV Pool is the sole pool where multiple shares can be earned, requiring an additional 1,000,000 GV points to be generated for each subsequent share within that specific month.
An additional ten percent of the company-wide gaming commission volume generated monthly is directed into six "Recognition Pools." Similar to the volume pools, "Expert affiliates" can qualify for shares in these pools. Qualification for Recognition Pools is linked to the cumulative GV an affiliate and their downline generate over specified qualification periods, which align with the calendar year rather than an individual affiliate's join date. The Double Platinum Pool is the only Recognition Pool where multiple shares can be generated, with each additional share necessitating an additional 5,000,000 GV points. Fantaz also operates a "Corporate Leads Pool," through which new affiliates who join the company without an existing upline are periodically distributed among qualified affiliates. To qualify for participation in this pool, a Fantaz affiliate must consistently generate at least 25,000 GV per month, accounting for both their own volume and that of their downline.
Fantaz officials did not immediately respond to requests for comment regarding the company's operational transparency or the specifics of its compensation plan. The absence of a retailable product or service means that Fantaz's revenue primarily stems from affiliate participation fees and the ongoing spending of affiliates on games, which in turn fuels the commission structure. The intricate, multi-tiered compensation plan, with its various pools and qualification requirements, suggests a significant emphasis on continuous affiliate recruitment and the generation of high gaming volumes across an affiliate's downline. This model, where earnings are directly tied to the activity of a recruited network and the absence of external retail sales, raises questions about its classification and adherence to regulations governing direct selling and multi-level marketing enterprises. The reliance on internal consumption for commission generation is a common characteristic examined in the context of such business models.