By Paul Nicholson
February 4 – The expected entry of the giant US Daily Fantasy Sports (DFS) operators into the so-far under exploited European markets has happened with a bang, with Boston-based DraftKings landing in the English market with deals with Arsenal, Liverpool and Watford.
DFS platforms allow fans to compete in single-day, online games for cash and prizes. They have rapid take-up in the US, building on the base fantasy sports but introducing more interactivity and virtual daily games for cash prizes that are played on predicted outcomes of the operator rather than the actual outcomes of match days.
DraftKings only launched in the US in 2012 but already boasts more than 6 million players saying that 1 million players joined last September alone. The company has rapidly moved to become a major sponsor of US major league sports and media.
Now the business is looking for similar growth globally and is targeting the 8.5 million fantasy football players in the UK, as well as expecting to be able to activate a new generation of players who “will soon be able to compete for the largest prizes in fantasy sport, with special deals and offers available to fans of partner clubs.”
Jason Robins (pictured centre left), co-founder and CEO of DraftKings said: “The reality in the UK is that DraftKings will bring a totally new experience for sports fans, especially those of Arsenal, Liverpool and Watford. We offer our players the opportunity to test their skill at fantasy contests with the immediacy of daily play.
“Our ambition is to bring players as close to the action as possible, with all the information they need to assemble the best teams. To do that, we are partnering with some of the biggest names in football here in the UK.”
The deal with the clubs will give game players chances to win exclusive prizes including matchday tickets, signed club merchandise, plus once in a lifetime experiences through daily fantasy football contests, as well as cash prizes.
Promotion of DraftKings brand presence will be at grounds via clubs’ digital and social media channels. Liverpool will feature pitch-side LED advertising for DraftKings.
The growth of DraftKings and DFS in the US has not been without significant controversy. The cash game are unregulated and the operators like it that way, saying that they are a game of skill and so outside of gambling regulation.
The New York attorney general Eric Schneiderman has a different view, arguing that the games are gambling and are subject to manipulation by the operators. Schneiderman has already filed one lawsuit that saw the games suspended before a stay was granted by a New York judge to allow them to continue operating while they appealed against the decision. A decision is still awaited – allowing DFS games to be continued to be played – but Schneiderman upped the ante when he adjusted his suit and asking for FanDuel (a rival DFS operator) and DraftKings to return all profits made in New York, repay customers who lost money and pay up to $5,000 in fines to every customer. It is estimated the two companies earned more than $200 million in entry fees in 2015 from around 600,000 customers.
So the stakes are high and the profits potentially enormous as DraftKings makes its Premier league debut.
Liverpool’s chief commercial officer, Billy Hogan (pictured centre right), said: “DraftKings’ daily fantasy platform brings a whole new dynamic to the fantasy football we’re all familiar with. They have a partnership with the Red Sox at Fenway Park so we’re excited to have them extend their relationship with FSG to Liverpool FC as well. We’re delighted to be leading the way in becoming one of DraftKings’ first football partnerships and we look forward to a long and successful relationship.”
DraftKings aren’t the first to make the Atlantic crossing, although they are the biggest. Last month Boston-based gambling firm Mondogoal launched their DFS football games in partnership with Italian online sports betting platform Intralot.
In North America DraftKings says it has had 200,000 unique players take part in Premier League, UEFA Champions League and MLS daily fantasy football games, making the company the biggest DFS football provider in the world.
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