More than two-thirds of companies that existed this time last year have shuttered, changed focus or joined with competitors, according to the Fantasy Sports Trade Association. Among the most prominent examples is the proposed merger between the industry’s two largest companies — Boston’s DraftKings and New York’s FanDuel. That deal, which was announced late last year, is currently being reviewed by the Federal Trade Commission. At least three notable companies — Fantasy Aces, FantasyHub and FantasyUp — shuttered while still owing players mone
The demise of last fall’s two biggest fantasy football players turned into an ugly reality for broadcasters’ bottom lines in September. According to new data from Standard Media Index, broadcast television spend fell 13.2% in September versus the previous September, when revenue swelled because of the freewheeling spending of dueling fantasy football companies DraftKings and FanDuel. Those companies — which rose quickly last year and fell even quicker — spent nearly $100 million less last month across broadcast and cable than they did the previous September.
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.
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.
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.