DraftKings and FanDuel are under siege, and it’s no longer only state lawmakers and attorneys general trying to decide the legality of the internet contests.
NFL viewers might find less of DraftKings and FanDuel in 2017 after six groups made a decision to part ways with the fantasy that is daily operators. (Image: Brand New England Patriots)
With the Oakland Raiders officially cleared for Las vegas, nevada, and March Madness also putting the recreations betting discussion into the mainstream media, day-to-day fantasy sports (DFS) has seemingly become 2nd fiddle to the market that is potentially massive. Fantasy sports has additionally lost a lot of its luster throughout the last 12 months or more, as revelations stumbled on light showing winners disproportionately preferred the so-called ‘DFS pro’ over the amateur player that is casual.
Being a result, a half-dozen NFL teams have severed ties with either DraftKings or FanDuel.
According to Yahoo Sports, which first broke the story, five franchises, the Miami Dolphins, Atlanta Falcons, Raiders, Pittsburgh Steelers, and Tennessee Titans, have all opted to not renew their marketing agreements with DraftKings. The Los Angeles Rams did the same, but with FanDuel. That departs 23 of the league’s 32 teams with DFS contracts for 2017.
The two DFS power players are currently in the process of trying to merge. But with a projected 95 percent combined control of industry, the US Federal Trade Commission could block the unification on monopoly concerns.
Gambling on Sports Betting
The federal ban on sports betting has been recently called into question by news outlets and sports analysts, in addition to politicians around the country.
PASPA, the Professional and Amateur Sports Protection Act passed in 1992, made gambling on professional and athletics that are collegiate in every but Nevada, Montana, Oregon, and Delaware. Today, just the Silver State takes advantage that is full of immunity from the law.
But critics such as the American Gaming Association (AGA) say it is time to repeal the regulation that is longstanding. AGA President Geoff Freeman opined this week, ‘It’s time for Washington to stop depriving states of critical tax revenue and enable them to reap the rewards of a regulated market.’
With legal moneyline and spread recreations wagering limited to Nevada, untold billions of dollars are wagered through illicit gambling networks. Bringing that money out of the underground would, according to proponents, safeguard bettors and offer brand new resources of income tax income for state governments.
Should PASPA be repealed or replaced and activities betting become legal, the need for daily fantasy activities would presumably evaporate.
DraftKings and FanDuel have made their appropriate situation thanks to a loophole in the illegal online Gambling Enforcement Act (UIGEA) passed away in 2006 that exempted ‘fantasy sports leagues’ from the law’s oversight. UIGEA made it illegal for payment processors, including banks, to facilitate deposits or withdrawals for customers associated with online gambling websites.
DFS companies say the outcomes of their competitions are skill-based and maybe not influenced by possibility, even though that remains up for debate, a dozen states have passed away legislation to protect the net games.
The Raiders’ move to Vegas, which will probably take place for the 2019 season, could keep the sports issue that is betting and center in the activities media. With a former casino owner in the White House, and an evergrowing vocals to repeal PASPA, Congress may be soon forced to deal with the 1992 law.