FanDuel Co-Founder Optimistic On Future Of DFS Industry
It is always fascinating to see how subjective all of us are when looking at a specific situation. The daily fantasy sports market in the last few months has according to many been under a real and present danger of closing down. In the last few years both DraftKings and rivals FanDuel have been enjoying an extended honeymoon period which has allowed them to go under the radar of legislators.
The legal loophole they have been exploiting until now is essentially that daily fantasy games are based on skill and not luck and therefore do not fall under the legal restrictions of real money gambling. This assumption has now been challenged in a big way by the likes of New York Attorney General Eric Schneiderman who is amongst those spearheading the push to regulate and restrict DFS.
The timing of the “crackdown” and interest by legislators is open for debate. As we have discussed in the past many believe that both DraftKings and FanDuel are victims of their own marketing success with both companies forking out millions of dollars in just about every media channel in the last few years as well as entering into major sponsorship deals with the largest brands in sports including the NBA, NFL, MLB,. NASCAR and the UFC to mention a few.
With all the turmoil engulfing the industry FanDuel’ s co-founder Tom Griffiths seemed surprisingly upbeat in a recent interview with Newsweek. Griffiths went on to put a positive light on the recent legislation attempts.
Griffiths was quick to mention that there are over 30 states already looking into drafting legislation for DFS and he believes it is just a matter of time until there is stability and clarity. FanDuel’s approach to co-operate and not fight legislation and regulation is definitely a key strategic aspect of their roadmap. He said,” I think we’re playing rope-a-dope a little bit in the last year. We were taking all the punches, but we were waiting. We knew it wasn’t the time to try and combat this… head to head.”
Griffiths made it clear that as FanDuel are a pioneering company or as he dubbed it “disruptive”, you can expect to run into regulation issues.