Boom Fantasy in New York
New York enacted a law legalizing and regulating paid-entry fantasy sports a year ago. Boom had not yet received a license, nor had it been operating in the state during that time.
It’s not clear why exactly regulators in the state had drug their heels on licensing Boom. But state Sen. John Bonacic, the chief sponsor of the law, made his case for NYSGC approving Boom in a letter to regulators earlier this month.
“We’re excited to finally offer New York DFS players an alternative to the traditional salary-cap contest,” said Stephen Murphy, CEO of Boom Fantasy. “It’s no secret that the DFS industry has been starved for innovation. The basic format of salary-cap contests hasn’t changed in 10 years.
“This permit, which we received after a comprehensive regulatory review by the New York State Gaming Commission, proves that there are fun, innovative ways to legally offer DFS contests that other operators have ignored.”
Boom says it will pay out “millions of dollars in cash prizes this NFL season.”
The approval also comes after Boom had raised $2 million earlier in the year. The prospect of the NY-based DFS operator not being able to operate in one of the most populous US jurisdictions — and its home state — might have been a nightmare scenario for the start-up.
Other forms of DFS
- Both DraftKings and FanDuel have rolled out versions of their games aimed at more casual players: Pick’em at DraftKings and Mini contests at FanDuel.
- Resorts Atlantic City launched a game this summer called FastPick, in which users simply pick players from a selection of matchups, what amounts to a parlay-based form of fantasy.
- USFantasy introduced a form of pari-mutuel fantasy wagering in Nevada and Colorado last year.
The number of companies DFS has thinned
Where once there were dozens of operators attempting to get a slice of the DFS industry, the number of companies with decent liquidity outside of DraftKings and FanDuel has been whittled down. Other than Boom, those companies include:
- Yahoo DFS: Since launching in 2015, Yahoo hasn’t done much to eat into DraftKings’ and FanDuel’s dominance. But it is offering the biggest NFL contest for Week 1 outside of DK and Yahoo, at $300,000.
- FantasyDraft: Another salary-cap operator, FantasyDraft is offering a million-dollar live final this year.
- Draft: Acquired by Paddy Power Betfair this summer, Draft has been flexing the marketing muscle from its parent company this month.