DraftKings has done a lot to change the way we think about Fantasy Sports. Only a few years ago, we would make a fantasy league with friends, play over the course of the season, and hopefully take home a pile of cash at the end. Many of us still play this style of fantasy sports, and it’s a lot of fun. But DraftKings, along with some other companies like FanDuel, came in and changed the game. Our thirst for Fantasy Sports could suddenly be quenched on a daily basis, and the possibility for winnings was seemingly unlimited. We spent hours every day, taking all the breaks we could from work to check player stats and start our lineups. The addiction grew and we all loved it. We still love it. But in many states the legal basis that these companies were founded on has come into question. Namely, in the state of New York DraftKings has been issued a cease and desist order. With the litigation of this case still pending, analysts have proposed that the outcome here may decide the fate of DraftKings as a company. According to the New York Times, DraftKings has recently appealed the ban of Fantasy Sports in New York. If DraftKings is to lose the battle to keep fantasy sports alive in New York, there could easily be a domino effect in other states. This result may be further into the future than expected, so even in the worst case scenario there will be plenty of playing time ahead. Many legislators have aimed to pass bills would legitimize daily fantasy sports but regulate the way that consumers are protected from companies in the industry. One such bill, proposed in Indiana, would prohibit advertising to students in years up to the 12th grade. Regulation such as this would be a positive middle ground for states to take, protecting consumers but not destroying a blooming industry. Fortunately of new DFS players, there is still a DraftKings promotion available for free entry to your first contest and a sign up bonus when you apply.
In the meantime, DraftKings has expanded its business to the UK. They have also announced plans to expand even further to Asia and Latin America in 2016. For investors this is definitely good news, and a hedge on any potential losses here in the United States. For us avid Daily Fantasy Sports players, we hope to see DraftKings active in local states far into the future. This field is still in its infancy, and we hope to see it grow to more sports contests in the future.