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FanDuel's co-founder leaves to create an eSports company
FanDuel co-creator Nigel Eccles has been toying with startup ideas ever since his company proposed a merger with DraftKings, and he's taking action now that the merger has fallen apart. Eccles has stepped down from his CEO and chairman positions to helm an eSports startup. He won't say much about what it is (besides "something awesome," naturally), but this isn't an acrimonious split -- he's "a little bit sad" to be going. FanDuel's previous financial chief, Matt King, is returning to the company to fill Eccles' shoes.
DraftKings and FanDuel make their merger official
It was speculated back in June and reports last month indicated that a deal was close. Today, daily fantasy sports sites DraftKings and FanDuel made their merger official. The two sides announced a "strategic merger" that's expected to close in the second half of 2017, but financial details weren't disclosed.
DraftKings and FanDuel may be serious about a merger
DraftKings and FanDuel have dismissed talk of a possible merger for ages, but it looks like those rumors may be more than just idle banter. Sources for both ESPN and Recode say that the daily fantasy sports websites are in serious talks about a union. Just how close they are is up for debate (ESPN says it's "imminent," Recode says the terms are "still being ironed out"), but this wouldn't just be an exploratory discussion.
DraftKings and FanDuel settle with New York for $12 million
Just because New York state has legalized daily fantasy sports doesn't mean that DraftKings and FanDuel are off the hook just yet. The two sites have settled with New York's Attorney General over charges of misleading customers about their chances of winning. Each company will pay $6 million, and they'll have to institute "sweeping reforms" to their marketing. They'll have to explicitly disclose the expected odds and winnings in contests, as well as the terms for any promotions. Both will also have to offer resources for players who might succumb to addiction, and host a page detailing the success rates for users -- particularly for top players who might use scripts and advanced theories to get an edge.
DraftKings and FanDuel's group features make daily fantasy more social
Until now, the focus for daily fantasy companies DraftKings and FanDuel has been just that: daily fantasy sports. However, both companies have announced new features that allow players to make private leagues where they can compete against a small group of friends and colleagues rather than public users of the services. With those private contests, both DraftKings and FanDuel are venturing into the world of season-long fantasy sports, something fans of regular ol' fantasy football, baseball and more are very familiar with.
Nevada gives its first license to a daily fantasy sports game
Nevada's gaming board shut down daily fantasy games from DraftKings and FanDuel late last year for fairly obvious reasons: they're gambling, and they need a license to operate in the state. Now for the first time, the board has issued a license to a daily fantasy operator called USFantasy. Unsurprisingly, the Vegas-approved fantasy game is planning to operate through the race and sports books of casinos, and won't look much like other daily fantasy sports games.
New York votes to legalize daily fantasy sports games
If you've wished that the daily fantasy offerings from DraftKings, FanDuel and Yahoo would come back to New York following their shutdown in March, you might just get your wish. State legislators have voted in favor of a bill that would greenlight and regulate daily fantasy games. If Governor Cuomo signs the measure into law, it would both tax companies with an entry fee (15 percent of gross revenue per year plus up to $50,000 more) and set some important baselines for conduct.
DraftKings and FanDuel are reportedly talking about a merger (updated)
Many would say that DraftKings and FanDuel are two sides of the same daily fantasy sports coin, and for good reason: in addition to similar businesses, they've sometimes been uncomfortably close to each other. And now, it looks like they might just cement that bond once and for all. Sources for both Bloomberg and Reuters say that the two companies are in merger talks. They reportedly haven't agreed on anything and might not unite, but the insiders claim that the two have been discussing the deal for a long time. Neither DraftKings nor FanDuel has commented so far.
Yahoo stops daily fantasy sports contests in New York
Yahoo is following the lead of DraftKings and FanDuel and stopping its paid daily fantasy sports operations in New York. Reuters reports that this shutdown won't affect other states, however.
DraftKings and FanDuel are legal in Virginia
Virginia's General Assembly recently sent the Fantasy Sports Act to governor Terry McAuliffe, and now that he's signed, it is the first state with daily fantasy law on the books. Highlights of the bill include a $50,000 registration fee for companies like DraftKings and FanDuel and age restrictions on players (you must be 18, much like gambling). Oh, and in a nod to the mess that put the industry in the spotlight: employees and their relatives can't play in any contests. What's more, site operators need to keep player and operational funds separate in addition to keeping data secure.
Virginia sends nation's first daily fantasy bill to the governor
As DraftKings and FanDuel make their case for daily fantasy sports in each state in the US, the Virginia legislature approved a framework to regulate the games. The Fantasy Contests Act (SB 646) passed both the Senate and the House in the state, making the Commonwealth's General Assembly the first to approve guidelines for the sports gaming craze that has taken the US (and UK) by storm. Of course, the bill still has to be signed by Governor Terry McAuliffe.
DraftKings is taking its daily fantasy sports to the UK
While daily fantasy sites DraftKings and FanDuel battle to stay open in the US, the former outfit is taking its games to the UK. Starting today, sports fans across the pond can take advantage of DraftKings' "innovative skill-based contests" to try and win cash. As you might expect, Premier League and Champions League soccer football is getting top billing for the contests alongside 11 other major sports, including NBA, NFL, NHL, UFC and eSports. In fact, DraftKings has a dedicated soccer site to keep you up to date on all the latest happenings. What's more, sports betting is legal in the UK, so the site stands to face less scrutiny there. But it's totally not gambling.
NYT: DraftKings and FanDuel lose major payment processor
The daily fantasy sports industry has a new problem, and The New York Times believes it's "the biggest blow yet" despite all its other legal challenges. One of its main payment processors, Vantiv Entertainment Solutions, has notified its clients that it'll stop processing all daily fantasy sports transactions in the US on February 29th. Payment processors handle all the players' deposits and withdrawals, and Vantiv, in particular, plays a major part in that for FanDuel and DraftKings. The company's services are a crucial part of those websites' operation -- they will not be able to continue running unless they find a replacement.
DraftKings and FanDuel will remain open in NY during appeal
Daily fantasy sites DraftKings and FanDuel are free to continue operating in the state of New York. After a judge banned the gaming services from taking funds for a few hours last month, an appeals court ruled that the two companies could continue games in the state until an appellate panel reviewed the case. According to ESPN's Darren Rovell, the panel has done so, and it decided that the sites could stay open during the appeals process. The decision follows an amended lawsuit by New York attorney general Eric Schneiderman asking for the companies to not only return profits made in the state, but refund lost money and pay a $5,000 fine per customer. Refunding the entry fees alone could cost the sites up to $200 million.
NY calls for FanDuel and DraftKings to give back profits
It was a pretty glum New Year celebration for daily fantasy sites FanDuel and DraftKings, following an amended lawsuit filed against them yesterday by New York attorney general Eric Schneiderman. The two biggest fantasy sports sites have been facing legal trouble for some time now, but this latest suit has the potential to be the most damaging. It asks for FanDuel and DraftKings to return all of their profits made in New York, repay customers who lost money and pay up to $5,000 in fines to every customer. As ESPN reports, the two companies have earned more than $200 million in entry fees last year from around 600,000 customers.
Illinois AG also thinks daily fantasy is gambling
DraftKings and FanDuel are already fighting to keep their doors open in New York City, and now Chicago is also at risk. Today Illinois Attorney General Lisa Madigan informed state representatives that in her opinion, daily fantasy sports games are unregulated illegal gambling. She did not go as far as the New York AG and attempt to ban their operations (yet), but she did send both companies letters saying they would need to tell IL players they are no longer eligible. Unless new legislation (currently under consideration) is passed, the two could find themselves permanently locked out of one of the United States' largest cities. In a statement, FanDuel claimed the AG's opinion banned all fantasy sports, and said it hopes the legislature brings them back. You can read the complete statement below.
FanDuel, DraftKings can operate in New York for now (updated)
FanDuel and DraftKings will not be allowed to operate in New York while the companies fight in court against state Attorney General Eric Schneiderman, who contends the sites constitute illegal gambling. State Supreme Court Judge Manuel Mendez ruled on Friday that the sites shut down until the legal battle is resolved, noting that the decision is "not a final determination of the merits and rights of the parties," The Wall Street Journal reports. Schneiderman fought for the temporary shut-down, while both sites (unsuccessfully) argued that they should be allowed to operate during the trial.
FanDuel warned staff against winning too often on rival sites
DraftKings and FanDuel may have bitten off more than they can chew when they sued New York to keep their daily fantasy sports games alive in the state. FanDuel's corporate policies from before it self-regulated have been entered into evidence, and some of them only seem to confirm worries about staff abusing their power while playing on rival sites. For a start, the site told workers to "never be among the top five" players on any daily fantasy site, or the top 10 on the tracking site RotoGrinders. They also couldn't have disproportionate numbers of entries in tournaments, and they were supposed to avoid using information on player lineups whenever possible. In other words, don't be too successful -- we don't want you raising suspicions that the games might be rigged.
Daily fantasy sports to stay in Massachusetts with new regulations
As the likes of DraftKings, FanDuel and Yahoo fight to keep their daily fantasy sites open in New York, they'll be able to do so in Massachusetts. Attorney General Maura Healey announced the first set of guidelines for a state to regulate the fantasy sports games rather than outright banning them. According to the new rules, players in Massachusetts must be 21 years of age and companies who run the games are prohibited from advertising on school or college campuses. What's more, professional athletes or folks with ties to a professional sport (agents, employees, etc.) won't be able to play games that focus on that particular sport. For example, an NFL player couldn't participate in pro football daily fantasy games, but could do so for NBA or basketball-related activities. The regulations won't go into effect immediately, though, as Healey asked for a public comment period and a court hearing before making the new rules official. However, daily fantasy companies could be proactive in establishing the new rules, which Healey said she hopes they would do. [Image credit: Bloomberg via Getty Images]
NY Attorney General targets Yahoo's daily fantasy sports next
Yahoo is no stranger to fantasy sports, and its foray into daily fantasy games grabbed the attention of regulators in New York. The internet company is being included in the inquiry into daily fantasy sports by the New York Attorney General's office. Yahoo was subpoenaed alongside DraftKings and FanDuel as Attorney General Eric Schneiderman looks to ban the games in his state. A distant third in the world of daily fantasy, Yahoo launched its version in July and continues to accept payments in the state of New York. However, the company shut down its daily fantasy option in Florida last month after an investigation of the industry began by a federal grand jury. With Schneiderman looking into other operators besides the two top names, it seems his goal is to rid New York of daily fantasy sports entirely and classify the games as gambling. And if he's successful, it'll be interesting to see if other states follow suit. [Image credit: Getty Images]
