HomePublicationsNewsletter ArchiveNewslettersVolume 22Issue 9DAILY FANTASY UPDATE INDUSTRY OPERATORS BAN CONTESTS ON COLLEGE SPORTS

After reaching an agreement with the NCAA, DraftKings and FanDuel will no longer offer daily fantasy sports (“DFS”) contests on college sports. Already, three states have officially agreed to regulate the DFS industry, with two - Indiana and Massachusetts - establishing a ban on college fantasy contests. 

Mark Emmert, NCAA President, offered this statement to ESPN:

"We appreciate and commend DraftKings and FanDuel's action to stop offering contests involving college, high school and youth sports. This action culminates months of hard work between all parties to reach a place that is good for amateur sports and most importantly, the young people who participate. We will work diligently with our member schools over the coming year to ensure such amater sports 'carve outs' are included in pending states' legislation."

FanDuel spokesman stated "It is clear that this is an issue that matters to a variety of constituencies and we feel that the best path forward is to suspend offering these contests pending resolution on the issue within state legislatures."

According to an article in Legal Sports Report, the NCAA has arisen as an opponent to DFS in several ways. Efforts have included certain commissioners of major college conferences writing letters asking DraftKings and FanDuel to stop offering college contests, a push by the NCAA to exclude DFS ads from being aired during the College Football Playoff as well as other tournaments, and the recent attachment by the NCAA to an educational effort - Student Sports Protection Alliance - to have college fantasy contests banned under regulatory bills at the state level.

Based on information provided by FanDuel, in the ESPN Report, college basketball and football account for about 3% of business for these DFS providers and some estimates put the entire college daily fantasy market between 5-10% of revenue. It is unclear whether smaller DFS providers will follow suit and suspend college daily fantasy contests.

Below is a link to the agreement with the NCAA.

http://espn.go.com/chalk/story/_/id/15104454/draftkings-fanduel-stop-offering-college-fantasy-games

 

 

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