DraftKings Delays UK Launch Till 2016
The last months for the daily fantasy sports market have been a nightmare with the real possibility that the entire industry could be brought down. The crisis was largely sparked off by the Ethan Haskell scandal which exposed the problem of employees from DraftKings and FanDuel having access to insider information and using that data to win huge amounts of money on each other’s sites. This of course threw the spotlight on the integrity of DFS and more so on just how long DraftKings and FanDuel can claim that what they are doing is anything other than real money gambling.
The ongoing legal battle in New York speared by Attorney General Eric Schneiderman has resulted in DraftKings having to spend millions of dollars on legal battles and having to cut their marketing campaigns drastically as to get themselves out of the media spotlight. The very media spotlight that they used in almost every channel is now widely believed to be one of the contributing factors as to why they have grabbed the attention of politicians who have been looking on the sidelines and seeing billion dollar industries being created and essentially looks like any real money casino operation.
The continuing legal battles and uncertainty in the DFS sector has now resulted in DraftKings delaying their UK launch. As we reported DraftKings secured a license to operate in the UK in August and were expected to launch there before the end of 2015.
However in a company statement DraftKings have now said they will delay their UK launch until “early next Year”. The reasons for the delay were not given but it is safe to assume that the issues we discussed are the main factor. The coming year will be key to the future for the DFS sector both in the US and abroad. DraftKings were hoping to expand in the UK, Asia and Australia but never dreamt that that they would be the subject of federal investigations and ambitious politicians looking to make a name for themselves in being the ones that changed the playing field for DFS operators from games of skill to games of chance.