DraftKings and FanDuel Shutdown

[Durty South Swamp]

Jesus Christ. You didn't read all of that did you?

No kidding. I clicked on it, then realized it was another one of those outside the lines long winded and verbose but extremely monotonous diatribes masquerading as intellectual journalism. Then I clicked the X and resumed my life.

 

[NVGator]

Jesus Christ. You didn't read all of that did you?

38 states were weighing daily fantasy legislation. Armed with a team of 105 lobbyists, Kudon and his colleagues discovered that despite their skill-game arguments that daily fantasy is not illegal gambling, influential gambling interests saw them as a threat and blocked them in states where they were entrenched, just as Charchian and others had predicted. Rivers Casino, located in Des Plaines, Illinois, helped kill the state's daily fantasy bill, and the Illinois attorney general issued an opinion that daily fantasy is illegal under state law. In California, Florida, Connecticut, Oklahoma and Arizona, Native American tribes with casinos managed to kill or thwart daily fantasy bills. The companies now don't accept wagers from players in 11 states, up from five a year ago.

But the fight's epicenter was the New York Capitol in Albany. No state was more important to daily fantasy's future than New York, where each company had the highest number of customers, who spent a total of $268.3 million in fees in 2015, second only to California. In February and March at DraftKings and FanDuel, executives debated whether they should settle the Schneiderman complaint by agreeing to stop operating paid contests in New York.

"It was tough," says Genetski, the FanDuel executive. "Shutting down seems counterintuitive, and we'd be second-guessed if it failed, but in my view it was clearly the right decision."

When the settlement was announced on March 21, Schneiderman waved the victory flag. "As I've said from the start, my job is to enforce the law," he said, "and starting today, DraftKings and FanDuel will abide by it."

Non-profitable, yep. The exact thing they were looking to do, right? Be a Non-profit business. The inevitable is near and getting closer and closer.

 

[oxrageous]

I read the whole thing. It appears FanDuel and DraftKings are going to merge, and I think they'll survive. Unless it's deemed illegal (and hell, it was just re-named legal in New York after being banned) there's too much money in it for it to go under.

 

[Swamp Queen]

Ugh. I just want the commercials to go away.

 

[maheo30]

Jesus Christ. You didn't read all of that did you?

I did. It is an easy read and interesting as to how both sites got started. Is it gambling? I certainly think so. However, whether it is or isn't is a mute point since neither site is anywhere near profitability.

 

[NVGator]

I read the whole thing. It appears FanDuel and DraftKings are going to merge, and I think they'll survive. Unless it's deemed illegal (and hell, it was just re-named legal in New York after being banned) there's too much money in it for it to go under.

I thought they already merged. There's 2 problems I see, if it's to continue...
1. The SEC doesn't like it much when insider stuff happens.
2. The Feds aren't getting their fair share.

Fix those 2 issues and you might have something.

 

[Gatordiddy]

Back in my younger days - about 2 years ago - I thought it was all about skill.
Now that I'm older and much wiser - it's about both skill and gambling.
And I'm going to need to hire three or four Asia-Pacific based SW application developers to help me this season.

 

[Bernardo de la Paz]

Non-profitable, yep. The exact thing they were looking to do, right? Be a Non-profit business. The inevitable is near and getting closer and closer.

I'm not a proponent of those sites or gambling. I just don't think we should have a thread title saying they were shut down when they haven't been and likely won't be.

 

[NCOGator]

Can GatorChatter be next?

 

[oxrageous]

Can GatorChatter be next?

My income stream isn't quite as impressive, although there is over half a million dollars of virtual money floating around this place.

 

[jaywalker72]

I'm not surprised that start ups in a brand new industry and spending a ton early on in customer acquisition, isn't in the black. Not a shock at all.

A major part of the MASS and NY legislation is revenue stream -- in a lot of states, like Florida and California, the issue is the tribes wanting an expansion of their abilities to have casinos, gaming, etc if states are going to let sites like FanDuel, DraftKings operate unfettered.

The insider stuff that was erroneously and irresponsibly reported breathlessly by the New York Times, and corrected quietly soon after, was less an issue than protecting customers from fly by night sites popping up and co-mingling customer account and operating pools and other regulation that makes sense for the industry.

If more states don't write legislation by the time the football season is over or soon after, then I can see those two sites merging like Sirius/XM merged to stay afloat.

 

[Gatordiddy]

I'm not surprised that start ups in a brand new industry and spending a ton early on in customer acquisition, isn't in the black. Not a shock at all.

A major part of the MASS and NY legislation is revenue stream -- in a lot of states, like Florida and California, the issue is the tribes wanting an expansion of their abilities to have casinos, gaming, etc if states are going to let sites like FanDuel, DraftKings operate unfettered.

The insider stuff that was erroneously and irresponsibly reported breathlessly by the New York Times, and corrected quietly soon after, was less an issue than protecting customers from fly by night sites popping up and co-mingling customer account and operating pools and other regulation that makes sense for the industry.

If more states don't write legislation by the time the football season is over or soon after, then I can see those two sites merging like Sirius/XM merged to stay afloat.

So...with that said.
I'm going to need a little help with my first lineup Jay...

 

[oxrageous]

Jason has a podcast interview on FanVice tomorrow night. I'll link to it.

 

[NVGator]

Jason has a podcast interview on FanVice tomorrow night. I'll link to it.

Where's the link?

 

[Bernardo de la Paz]

Just saw one of those awful commercials.

Almost one year after NV declares the sites shut down, they are still operating.

 

[NVGator]

Just saw one of those awful commercials.

Almost one year after NV declares the sites shut down, they are still operating.

How many times have you clicked in this thread and posted?

I'd say the title worked out well.