Dialing up its wagering efforts around sports, ESPN has made two separate sports betting partnerships — one each with DraftKings and Caesars Entertainment to promote sports gambling content. ESPN will offer content linked to both gambling companies’ sports booking operations.
DraftKings is enhancing its sports sponsorship portfolio as leagues continue to resume operations suspended due to Covid-19. The betting company announced it secured a deal with the PGA Tour that assigns DraftKings as the organization’s “first betting operator.” The agreement is an extension of DraftKings’ “content and marketing relationship” with the PGA Tour established last July. That deal also allows DraftKings to offer fantasy golf content.
Sports betting giant DraftKings will go public as part of a $3.3 billion, three-way merger with SBTech and Diamond Eagle Acquisition Corp., a firm founded by Hollywood veterans Harry Sloan and Jeff Sagansky. With legal restrictions around sports wagering beginning to ease across the country, DraftKings has been a leading participant in the rising tide of revenue from fantasy sports and mobile betting.
The Federal Trade Commission said on Monday that it will seek to block an attempted merger between two fantasy sports betting websites, DraftKings and FanDuel. The FTC said that it has authorized legal action to prevent the merger between the two companies, which are the two biggest platforms in the online sports betting market.
The daily fantasy sports companies DraftKings and FanDuel have agreed to merge after a turbulent year in which both of their values plummeted as several attorneys general questioned the legality of their games in their states. The merger was one of necessity: Lobbying and legal costs had damaged both companies’ bottom lines to the extent that representatives of the companies last month asked the New York attorney general’s office to allow them to pay a combined $12 million settlement in installments after claims that they employed false and deceptive advertising practices, two people familiar with those negotiations said.
The end of 2015 saw an uptick in lobbying related to the controversial daily fantasy sports industry, according to disclosure forms. Daily fantasy website DraftKings spent $80,000 in the last three months of the year on outside lobbying help, according to its filing. Rival FanDuel spent $50,000 on lobbying services from law firm Steptoe and Johnson. It was the first full quarter in which the firms lobbied in Washington.
Maryland Senate President Thomas V. Mike Miller may have pushed to legalize casinos in Maryland, but he will not champion fantasy sports-betting websites. Miller said Monday commercial fantasy sites like DraftKings and FanDuel need to stop operating in Maryland or propose legislation to make their ventures legal in the state.
Another state has bet against fantasy sports sites FanDuel and DraftKings and moved them into the illegal gambling column. On Wednesday, Illinois Attorney General Lisa Madigan told state legislators that the sites are breaking the laws of the Prairie State.
In the latest blow to the beleaguered daily fantasy sports industry, a New York judge has ordered DraftKings Inc. and FanDuel Inc. to shut down in New York while the companies fight Attorney General Eric Schneiderman in court. The ruling by Manuel Mendez is a victory for Schneiderman, who ruled last month that the companies’ contests are a form of illegal gambling.
As industry leaders FanDuel and DraftKings fight to protect their lucrative enterprises, other companies offering daily fantasy sports are taking different approaches to how they operate as their new industry faces increased scrutiny.
The legal chaos that imperils the daily fantasy sports (DFS) industry now officially threatens the professional sports leagues, media companies and financial institutions that have become partners with the two leading DFS companies, DraftKings and FanDuel. Two Florida-based DFS customers e-filed a class action lawsuit in the U.S. District Court for the Southern District of Florida against approximately 50 companies and individuals that have either invested in DFS companies or facilitated DFS gaming. Among those named are Turner Sports, Time Warner, NBC Sports Comcast Ventures, 21st Century Fox and Fox Sports Interactive Media.
The ripple effects in media from New York State’s crackdown on fantasy sports sites DraftKings and FanDuel might be bigger than many industry watchers imagined, according to two reports out today. Analyses by MoffettNathanson Research’s Michael Nathanson and Bernstein Research’s Todd Juenger show that ad outlays by the fantasy sports firms noticeably lifted TV networks’ financial results in the third quarter.
Fantasy-sports websites DraftKings and FanDuel are fighting back against the New York attorney general’s order to cease operations in the Empire State. On Friday, the two companies separately filed appeals to stop the motion by New York attorney general Eric Schneiderman, filed Tuesday, that DraftKings and FanDuel are illegal gambling outlets subject to criminal penalties.
A decision by New York’s attorney general to ban FanDuel and DraftKings from offering daily fantasy sports betting threatens to cascade across the country — and trigger legal and lobbying wars in other states that might ultimately draw Washington into the fray.
Nothing seems to fluster CBS chief Les Moonves, including New York’s new attack on two of his large sports advertisers: fantasy sports powers FanDuel and DraftKings. He said Wednesday morning that while New York’s attorney general issued a cease-and-desist order yesterday, “they are not out of business … yet.” And they “are not in the top class of advertisers” led by pharmaceutical and auto companies. “We like their money. We like their advertising. We want them to succeed. But this is not a monumental event for us.”
New York’s Attorney General Eric Schneiderman said Tuesday that after a one-month investigation, his office had concluded that the daily contests operated by DraftKings and FanDuel are essentially games of chance, not skill, constituting illegal gambling. He ordered them to stop accepting bets.
Won’t somebody think of the children? That’s one of the common concerns in written complaints to the FCC about the massive advertising campaigns of daily fantasy sports companies, Boston-based DraftKings and New York-based FanDuel.
Don’t expect to see daily fantasy sports leagues posting wall-to-wall advertising in next year’s NCAA March Madness event. The NCAA has banned all sponsorship/advertising activity in televised college sports championships for DraftKings and FanDuel.
ESPN has suspended its branded news segments featuring sports fantasy site DraftKings. The fantasy sports company has suspended virtually all TV advertising on the network. All this was in response to a DraftKings and FanDuel “insider trading” scandal that was revealed in a New York Times story on Tuesday. That story said a DraftKings employee used inside information to play on the competitor’s FanDuel site, winning $350,000.
About 8,000 television spots by DraftKings and FanDuel in the NFL’s opening week raised awareness of daily fantasy sports games, but critics still question their legality.
Two big fantasy sports platforms — DraftKings and FanDuel — are in an all-out turf war ahead of the NFL season, quadrupling their ad spending this year in an attempt to sign up sports addicts willing to bet big bucks their sports know-how is greater than the fan’s next door. Together, the companies are expected to have shelled out $110 million just on TV ads this year through Sept. 2.