DraftKings Reportedly Applying For UK Gambling License
In the ever changing daily fantasy sports landscape nothing should surprise anyone following this evolving market. We have reported extensively over the last few years on all the maneuvers and acquisitions undertaken by the two main players in this sector, DraftKings and FanDuel. While the size advantage still remains with FanDuel, their rivals DraftKings have are continuing to close the gap with more and more surprises up their sleeve.
The latest move by DraftKings could either be a spark of brilliance or a major strategic mistake. A report based on a Twitter user @Big01 claims there is currently an application pending with the UK Gambling Commission submitted by DraftKings. The application is for both pool betting and gambling software licenses with the status marked as pending according the website.
The choice of the UK is interesting but understandable due to their expeditious licensing process. However the popularity of daily fantasy sports betting in markets other than the U.S. has got to be questioned. One of the main reason for the growth and popularity of the DFS sector in the U.S. is the fact that Americans have few legal online gambling choices. In regulated markets like the UK the availability of real money sports betting is already there.
Another factor which could come back to bite DraftKings in the pocket is the very application for a gambling license. One of the main arguments of the big players in the DFS sector is the fact that they claim that it is based on skill and not luck as with gambling. It is for this reason that they are still allowed to operate legally in most U.S. States. The very fact hat they applied to the UK Gambling Commission will certainly give ammunition to critics who have always been of the opinion that daily fantasy sports betting is just another form of real money gambling.