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DirtyD / ADP - Thoughts on NY AG's Cease and Desist to FanDuel / Draft Kings?

TwoDecks

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As a non-player of daily fantasy sports (and non-sports gambler in general), what are your thoughts on Schneiderman's latest move? Personally, I think he is a just another politician focused on things that will get the most traffic, but wonder if this is the beginning of the end for these sites until new legislation has been brought up.

Also, lots of articles in the NYT about off-shore gaming more broadly. Fun reads.
 
At this point, the leagues are counting on FanDuel/DraftKings ad buys as much as beer brands. Will the NFL step up and help to defend DFS in their own self interest?
 
At this point, the leagues are counting on FanDuel/DraftKings ad buys as much as beer brands. Will the NFL step up and help to defend DFS in their own self interest?

My understanding is that this is not true. They represent a very small portion of the ad revenue the leagues make.
 
IMO and as I've said consistently, it's all moving towards the inevitability of legalized sports gambling. Watch what you see, talk of "regulation". Which means legalization. It's simply a matter of how quickly do the leagues come on board, realizing the money is there for the taking. It's going to happen just a matter of when.
 
This is "I want my cut" in the form of righteous indignation letter by the NY AG. Everybody has eyeballs glazed over with the sight of dollar signs and they want their "fair share".
 
http://adage.com/article/media/draftkings-fanduel-spe/300658/

Not sure I'd say very small. They spent $107 million on TV spots in September. FanDuel spent $27 million with the NFL. That's more than Geico and Verizon.

My impression was that the NFL doesn't receive dollars directly from the advertising that take place during the airing of games. Those are the dollars the networks make and then in turn use that to pay for the deals they have with the NFL. The point being made was that the NFL needs to step up because of the money DFS is providing the NFL. I'm not seeing a direct dollar tie in. If a DFS isn't paying for the advertising spots, someone else will.

I may have contradicted my first point (I had heard Rob Manfred on Mad Dog stating the money they receive for these sites is a drop in the bucket) but I fail to see why the NFL would step up for these sites.

To ADP's point once this has all sorted itself out and its "regulated" you can bet the NFL will setup its own DFS much in the same way they've setup a site for fantasy football.
 
They're not going to be buying ads at that rate forever, right?
The article says that DraftKings and ESPN have an exclusive $250 million, 2 year deal that starts in 2016. Not $100 million a month but that's pretty crazy for one network.
 
Fair point WhiteChocolate. FanDuel/DraftKings are paying the networks, not the NFL, but ad revenue drives the terms of the next NFL TV deal. Adding a new segment to the pool of advertisers is only going to increase the cost of a spot (and ultimately revenue) as demand increases with a static supply of ad time.
 
Getting back to original point, placing bets on daily fantasy football is the same as placing bets on football games, or playing poker, or blackjack, etc. There is some skill involved, and there is luck involved. It's wagering. Either all should be legal or all illegal.
 
But the state run lotteries have zero skill and the highest house holds; yet they are legal. Makes sense
 
Schneiderman is no different from what would happen if a state elected Gloria Allred as attorney general. He's awful.
 
He's just an AG using his office for political gain. It's a time-honored tradition everywhere, but particularly in NY.
 
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The article says that DraftKings and ESPN have an exclusive $250 million, 2 year deal that starts in 2016. Not $100 million a month but that's pretty crazy for one network.
Right, but they're not going to be advertising out the wazoo indefinitely are they? They'll blast us with ads for a year or two, make sure everyone under every rock in America knows about "daily fantasy", get a loyal client base and then maintain.
 
Right, but they're not going to be advertising out the wazoo indefinitely are they? They'll blast us with ads for a year or two, make sure everyone under every rock in America knows about "daily fantasy", get a loyal client base and then maintain.
I know about Chevy/Ford trucks, Miller/Bud, Geico, Verizon/AT&T. Why do they keep advertising?
 
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