Can you imagine watching the upcoming 2016 NCAA Tournament with the frequency of those DraftKings and FanDuel ads? Months ago, it didn’t matter what sport you might’ve been watching, those ads were inescapable.
And they’ve since disappeared. According to a recent article on Forbes.com, FanDuel has had two rounds of layoffs while Boston-based DraftKings is trying to open doors in Europe to make up for those recently closed in the U.S.
While the fantasy sports industry has sputtered over recent months, there are two recent causes for long-term optimism.
Virginia Passes Fantasy Contests Act
On Monday, Mar. 7, Virginia Governor Terry McAuliffe signed the Fantasy Contests Act, which permits playing of daily fantasy sports by adults aged 18 and over. The ruling is welcome news for an industry that has been on life support the last few months.
The Fantasy Contests Act, however, comes with caveats:
- DFS platforms must pay a $50,000 licensing fee to cover the cost of oversight.
- DFS sites must take measures to make certain no one under 18 can play
- By the law, it is illegal for DFS employees to take part (remember the DraftKings employee that won $350,000 from FanDuel because he had inside information?)
Make no mistake – the other 49 states are watching. According to a recent story in Gambling Insider, Indiana currently has a proposed bill in the works similar to Virginia’s model. Many states are expected to follow.
DraftKings, Liverpool FC Partner Up
Because many states joined New York and ruled that daily fantasy sports activity is gambling (opposed to a skill), DraftKings opted to try its hand in Europe. By early accounts, it is moving forward: In February, DraftKings announced a deal with Liverpool FC as its official DFS partner.
For whatever reason, Europe is an untapped market for fantasy sports. It just hasn’t taken hold the way it has in the U.S. DraftKings is trying to change that.
Payment Solutions for Daily Fantasy Sports
While we feel the daily fantasy sports industry is about to experience steady growth, Instabill has merchant account solutions. Get the conversation started with one of our merchant account managers today at 1-800-318-2713.