FanDuel Enters Into Partnership Deal With NBA
One of the fiercest rivalries in fantasy sports betting is that which takes place off the field and in the boardrooms between DraftKings and FanDuel. These two companies seem to be embracing similiar business plans. In September we reported on FanDuel receiving $70 million in funding which followed the $40 million received by DraftKings only a month before.
Yesterday we reported on DraftKings signing a multi-year plan with the NHL which would see them become the Official Daily Fantasy game of the NHL. FanDuel once again did not want to be outdone by their rivals and announced a four year exclusive deal with the NBA. In terms of the deal the NBA will invest heavily in FanDuel and will become the exclusive daily fantasy sports site featured on their official website.
The fantasy sports betting sector is enjoying unprecedented growth as it is not illegal or classified as unlawful gambling. With these latest two deals with the NHL and NBA there is no question that fantasy sports betting is here to stay in a big way. Both DraftKings and FanDuel have ensured that their brands are associated alongside some of the most prestigious sporting franchises on the planet.
This was not lost to CEO and founder if FanDuel, Nigel Eccles who commented on their deal with the NBA. He said,” The special status helps legitimize us, but we wanted to do this deal because the NBA, more than any other league, they understood the upside to them as well.”
It is now a proven fact that fantasy sports betting compliments and enhances the viewing experience of sports fans. Eccles went on to point out that data proves that a fan who engages in fantasy sports betting increases their weekly sports TV consumption rocket from 17.5 hours to 24 hours.
This of course would explain why NBA Commissioner Adam Silver believed that the legalization of sport betting is inevitable. Market forces simply dictate that the need to cater to the millions of fantasy sports fans has to be addressed in a regulated manner otherwise billions of dollars will be lost to illegal operators.
Eccles believes that FanDuel will be able to tap into the fantasy basketball market which is largely untapped. He hopes to capitalize on their fantasy football players base, ” We hope we can convert half the fans who came to our site to play daily fantasy football and get them to like playing daily fantasy basketball.”
While online gambling in the US is still largely restricted to only three states, the legal loophole that allows fantasy sports betting in all but five U.S. States is proving to be a popular alternative for those looking to enjoy legal real money gambling.