“This Week In Daily” is LegalSportsReport’s weekly wrap of key facts, happenings and miscellany from the daily fantasy sports industry.
Stories of note
State matters: Nevada, Michigan and Pennsylvania
What states are planning to do with DFS was in the spotlight this week:
- MGM CEO Jim Murren once again referred to DFS gambling, calling out FanDuel and DraftKings. That comes after the results of this week’s New Jersey sports betting case, which could have a legal impact on daily fantasy sports, according to one gaming lawyer. And our analysis says Nevada could be the epicenter for DFS regulation.
- A Michigan state senator introduced a bill that would classify fantasy sports as a skill game.
- Pennsylvania’s House Gaming Committee scheduled a hearing to talk about fantasy sports. The content of the meeting is not yet known, but it’s a fair bet to say that it’s not to just give the DFS industry a pat on the back.
While much is made of the UIGEA carveout of fantasy sports at the federal level, that never trumps what states want to do. So keeping an eye on what state legislatures are up to at the end of 2015 and beyond will be key.
Fantasy sports in crosshairs of Gamblers Anonymous
While this might not be a bombshell — the book also includes stock trading and other legal activities as things that are discouraged — it adds to the perception problem for the DFS industry. It continues to insist it’s not gambling, while a lot of people without a vested interest believe the opposite.
Perhaps the most honest assessment on the whole matter came in an op-ed from a few months ago, opining that DFS is both gambling and a skill game. Which, increasingly, seems to mirror the opinion of the public and mainstream media.
Of the week
Read of the week
This story from ESPN’s Chalk got kind of lost in the shuffle after the New Jersey sports betting case ruling came down. But it’s an interesting read about the fall of an “exchanged-based” betting platform in Washington state.
The application to DFS? Here’s ESPN’s Ryan Rodenberg, the author:
The Betcha.com enforcement action has lessons for how rapidly changing fantasy and wagering options are regulated on a state-by-state basis. With no uniform federal standard, some states are lax while others aggressively regulate the space. Washington, a jurisdiction with one of the strictest online gambling laws in the country, is illustrative of the latter.
“Any DFS company operating in Washington or providing services to Washington residents would be illegal under state law,” Newer said. “DFS has received some complaints and we follow up on all complaints.
“We do have investigations pertaining to DFS.”
Watch and listen of the week
Actor Ed Norton narrates a new DraftKings ad. According to a press release from DraftKings, it’s part of a new campaign called “Welcome to the Big Time” and it will launch Sunday on FOX, ESPN, NBC and CBS:
Tweets of the week
Strange… NFL shuts down Tony Romo fantasy football event but allows Cowboys to sign partnership with DraftKings.
— CJ Hoyt (@CJHoyt1) August 26, 2015
Number of the week
The amount that DraftKings has spent on television advertising in the past week. That puts DraftKings No. 4 in the United States in TV ad spend in that time frame, ahead of companies like Ford and McDonald’s.
In case you missed it
Other news and stories from the world of DFS:
- DraftKings officially announces fantasy sports lounges at the stadiums of the Dallas Cowboys, Kansas City Chiefs and New England Patriots (lounge tracker here)
- FanDuel partners with Sportradar for faster NFL stats.
- Yahoo launches its NFL contests, including one that guarantees a million dollars.
- A look back at the big year for DFS in golf.
- Washington Post: ‘Watch games in our daily-fantasy gambling lounges,’ say leagues that oppose sports gambling