FanDuel Exits UK To Focus On Key US Market
The Daily Fantasy Sports market in the US has being trying to return to its glory days after a couple of nightmare years which were spent fighting legal battles that almost crippled the entire industry.
The legal and regulatory issues in the US led both FanDuel and DraftKings to seek greener pastures abroad and both obtained operating licenses in the UK in the hope that this would provide a trouble free market outside of the US.
DFS industry experts have always been quick to point out that the success and popularity of DFS in the US is largely due to the fact that sports betting is not legal in most US States. However in countries like the UK, sports betting has been legal and available for a long time to sports fans.
It seems that the demand for DFS in markets like the UK is far from high and this has led to DFS powerhouse FanDuel announcing that today that they will not be offering contests in the UK this season. Customers of FanDuel.co.uk received an email in which the departure was classified as a “hiatus”.
This is definitely a blow to the DFS outside the U.S. and is a strong indicator of the challenges faced and difficulties to attract new audiences outside of the US to this market. FanDuel launched less than a year ago in the UK and only around £1 million was won over the last year by UK players which is nothing compared to the US.
A company spokesman said,” We will not be operating our UK product this upcoming EPL season to focus on our product in the US. As we approach the NFL season, we are allocating all of our resources towards ramping up a US product that consumers love and building out complementary fantasy sports products. There are over 53 million people playing fantasy sports in the United States and we are investing all of our resources on that market.”
This latest news comes at a time when the merger between FanDuel and DraftKings was scrapped due to FTC interference.