FanDuel To Add Golf To Their Product Offering
The merger between rivals FanDuel and DraftKings is still yet to be completely ironed out as both companies will presumably have to work on one common platform. The merger is set to be completed by the end of 2017 with DraftKings CEO Jason Robbins set to act as joint CEO and Nigel Eccles taking up the Chairman role.
Anyone following the progress of the DFS industry in the past few years would still admit that these two fierce rivals teaming up is still a surprise to all as both CEO’s did not spare taking shots at each other over the years.
While still too early to say, it does seem that FanDuel is having to compromise and toe the line more in the spirit of DraftKings. This was given further credence as FanDuel are set to add golf to the sports they offer. This follows them adding English Premier League only two months ago which was the first product change they had in the last three years.
The significance of this is huge as we all remember FanDuel CEO Nigel Eccles stating in the past that the reason they stuck mostly to NBA and football was due to 80% of their revenues coming from these sports. He said at the time,” When we looked at our data, we said, you know what, 80% of our revenue comes from NBA and football; it’s more important that we go deep there. If [DraftKings] have 100% market share of a sport that only has 1% of the total market, hey, okay. I’d rather have 80% market share of 80% of the market.”
DraftKings on the other has expanded into multiple sports. As we reported over the last few years they have included NASCAR, MMA, NHL, MLB and golf.
The addition of golf to FanDuel’s offering is tricky according to some as some DFS experts believe it could constitute illegal gambling as a single PGA tournament would not qualify as “ containing multiple events” which is one of the conditions of the UIGEA Act of 2006 which DFS companies point out excludes them and allows them to operate.
Eccles in a turnaround was confident that due to the recent passing of laws in multiple states regulating DFS, the boundaries of what they can and can’t do are much clearer.