Weekly Roundup 7-10-17 to 7-14-17
DraftKings and FanDuel Call off Merger
After agreeing to a merger, the two biggest daily fantasy sites, DraftKings and FanDuel, have decided to call off their agreement. After an FTC inquiry the two DFS giants have called off the merger after days of considering options.
DraftKings Chief Executive, Jason Robbins, confirmed the decision, stating, “We believe it is in our best interests of our customers, employees, and investors to terminate our agreement.” FanDuel head, Nigel Eccles, echoed Robbins, by saying “There is still enormous, untapped, market opportunity for FanDuel, and we will continue to execute our strategy to grow our business and further expand the fantasy sports industry.”
FanDuel and DraftKings are far from financially sound companies, despite the large prize pools and advertising they have done in recent years. They needed another wave of funding to stay afloat last year before the merger. VIP programs and rake has risen steadily at both sites.
Connecticut Signs Sports Betting Bill into Law
As reported by Legal Sports Report, Connecticut has signed a sports betting bill into law. Of course, PAPSA is still the law of the land and the state will not be able to offer sports betting until the federal climate changes.
That could come sooner than expected after the Supreme Court decided to hear New Jersey’s sports betting case. A decision on that case won’t come until sometime in the first quarter of 2018, at the earliest.
MLB Commish Comments on NJ Case
Building off the Supreme Court case, ESPN’s David Purdam reports that Rob Manfred and MLB baseball is interested in having a say in the regulatory structure if sports betting does be legal. He stated, “If there’s going to be a change in the regulatory structure with respects to sports gambling, we needed to be in a position to meaningfully engage and shape, try to shape what the regulatory scheme looks like.”