FanDuel restricted states – Visit FanDuel Now. The states where FanDuel blocks players are: Arizona, Alabama, Hawaii, Idaho, Iowa, Louisiana, Montana, Nevada and Washington state. Again, this is a reflection of company policy regarding banned states and not a legal.
- Tennessee is the eighth state where FanDuel offers mobile sports betting (the company also offers retail sportsbooks in eight states). Founded in 2009, FanDuel is known as a national leader in.
- While many states have clear legislation or legal precedent in place that protects FanDuel contests, some states require more legal clarity. At FanDuel, we believe that state regulations that increase transparency and ensure contests are fair will benefit the entire fantasy industry, most importantly players.
By Weston Blasi
FanDuel's CEO Matt King on what betting on sports -- and politics -- will look like in the future
FanDuel CEO Matt King joked with MarketWatch that the Super Bowl should fall into the 'essential travel' recommendations from the CDC.
King, the head of the New York-based bookmaker and daily fantasy sports site since 2017, is an annual attendee of the big game, but this year decided it 'didn't make sense' to go. Like millions of other NFL fans, King will be watching the Chiefs take on the Bucs on TV.
In an interview with MarketWatch, King weighed in on how the pandemic is accelerating sports betting, FanDuel's interest in becoming a public company, and if legal sports betting in New York state is a 'game-changer.'
MarketWatch: Is FanDuel doing any physical events for the Super Bowl this year?
King: It's pretty limited this year. Last year we did a bunch of events with players and some events with a few of our partners that are down there. A series of smaller things.
MarketWatch: Do you anticipate more money being wagered on the Super Bowl this year than in past years?
King: Yeah there's going to be a lot more. Obviously we are in a lot more states, that's the tailwind, but even the states that we've been operating in the last two years are up significantly this year.
See also: Here's everything you need to know about betting on the Super Bowl legally (link)
Fanduel Legal States
MarketWatch: What are your total bet projections for the game?
King: Our business is up dramatically. I'm not sure we are disclosing our specific projections but it'll be by far the biggest game on record for us. Many orders of magnitude up year-over-year. The statistic I can give you because it's on the tip of my tongue is that in the first 28 days of 2021, we've done $1 billion in handle on the sportsbook. We didn't hit $1 billion in handle in 2020 until Q4.
MarketWatch: Any particular growth areas in your business that you're seeing? Something like live-betting for example?
King: The live-betting has been pretty popular since day one. I would say the big story this year is going to be our same-game parlay product. This is where you can bet on multiple things happening in the same game and we are really the only ones in the market that offers it. The Super Bowl is perfect for same-game parlay betting. It allows people to say 'here are the three guys who I think are going to score a touchdown.' The customer acceptance of the product so far this year has been off the charts.
See also: 10 Super Bowl prop bets including 'Doink Special' and 'Fat Man TD' (link)
MarketWatch: Florida, the state where the Super Bowl is, was close to legalizing sports betting in 2020, but it never happened. How closely are you watching new states attempting to legalize gambling?
King: Our head lawyer once gave me a good piece of advice which was 'the chances of passing any law is 50/50 until it actually passes.' It's either going to pass or it's not and I've taken that to heart. The way we look at the world is we think about the total number of states that are considering sportsbetting and we assume that some percentage of those are going to pass. It's just hard to predict which ones are going to get it over the goal line. We are confident that you're going to see a number of states pass it this year, we just don't know which ones.
MarketWatch: The four states with the highest populations: California, Texas, New York and Florida have not legalized sports betting yet, do you see those states as game-changers for your business?
King: We certainly see every new state as a market opportunity, and obviously the bigger the state the bigger the market opportunity. But, the real change is what is already happening. Sportsbetting is becoming part of the narrative around sports. It's embedded in how we talk about sports and even in those big states it's a bit of a when -- not if -- question because people are understanding the size of scope of the illegal market and the fact that it's just common sense legislation to try and put it out of business. I don't necessarily view them as game-changers because the reality is we are already in the middle of the game. Certainly a big state will accelerate things.
MarketWatch: Do you think the pandemic will force states to legalize sports betting faster?
King: I think it will be the case. I think it will be the case for sports betting and igaming. You have two things going on. One is the fiscal pressures for any individual state are greater than they have ever been. I do think states will look for ways to help them claw out of fiscal holes that were created by the pandemic. But the other thing is more states passed laws around sports betting and igaming and demonstrated that they are win-win common sense legislation. It allows consumers to do what they love, and it generates tax revenue for the state and puts an illegal market out of business. It's a pretty easy choice to make.
MarketWatch: Are you guys advertising during the Super Bowl this year?
King: We are not going to be during the game. We didn't think it made sense to do a Super Bowl ad this year.
MarketWatch: Do you think the NFL would like an ad for a sportsbook during the game?
King: The NFL approves all ads for the game, (laughs) so they are not going to let a sportsbook ad go during the game at this point.
MarketWatch: FanDuel is not a public company, but when you see huge growth of other public betting companies like DraftKings (DKNG) and Penn (PENN), do you feel jealousy or do you feel like it's just good for the industry?
King: Our focus is on the fan, and where we focus on winning is in delivering the best product and best fan experience on the market. When we get customer feedback and look at the market share reports, it's clear we have the number one business out there. And that makes us very proud. Stock prices, as we've seen over the last few weeks (laughs) can be somewhat ephemeral.
See also: Mark Cuban to WallStreetBets traders: 'Thanks for changing the game -- thanks for taking on Wall Street' (link)
MarketWatch: What about from a 'high tide raises all boats' line of thinking?
King: From a perspective of people understanding more about the industry and how it's additive to the sports ecosystem, that's a good thing. So anything that does that is a good thing. It's also a big market. We don't look at things as a zero-sum game; we look at it as we are in the early innings of a big business game. That competition breeds innovation.
MarketWatch: In our interview last year (link), we discussed the idea of FanDuel as a public company. Is going public something that you have discussed with your team?
King: Our focus is just trying to build the best business we can. There's just so much to do to grow the business and innovate the product. We are well-funded by Flutter and we have all the resources we need. We are just trying to grow the business.
MarketWatch: Is election betting something you're interested in?
King: I think clearly people find election betting as an interesting way to engage in politics. There's a lot of legal restrictions in the U.S. that don't exist in Europe. Our focus has been offering free to play games on the presidential debates (link). We can see there's a lot of interest in it. I think it will be a long time before we see a big election betting market here.
MarketWatch: So the 2024 and 2028 presidential elections, you don't anticipate election betting by then?
King: I don't think it will be a big thing mostly because regulations will continue to restrict the market and I don't see those regulations changing. The demand is definitely there though.
MarketWatch: Who do the sportsbooks need to win? Fanduel bookie.
King: The Super Bowl is not about making or losing money as we talked about last year. It's about giving fans a phenomenal experience. More of the bets are on the Chiefs. If the Chiefs win and cover the spread we are going to lose a few bucks. The same is true if it's a very high scoring game, which is pretty typical.
MarketWatch: What is sports betting like 10 years from now?
King: I think it's less about sports betting in isolation and more about the convergence of things like sports betting and gaming in general with sports and sports media. It's safe to say that all the sports rights owners are trying to find new ways to engage fans. I think you're going to see some great stuff for the next generation fan experience. You may see new ways to watch sports, a more customized experience.
See also: Tickets for this year's Super Bowl are more expensive than they've been in over a decade (link)
MarketWatch: A gamification of the actual games?
King: The ability to pop in and out of games more easily based on moments that matter. Reduced latency in the streaming feeds. You'll see some alternative broadcasters, whether it's your favorite Twitch personality announcing the game or somebody who may take a more betting oriented look at the game. A more build-your-own experience versus having to consume the same broadcast that 20 million other people are watching.
-Weston Blasi; 415-439-6400; [email protected]
(END) Dow Jones Newswires
02-07-21 1246ET
Copyright (c) 2021 Dow Jones & Company, Inc.The FanDuel Sportsbook is now live in New Jersey. Visit the FanDuel Sportsbook mobile app here for full details.
New documents obtained by PlayUSA via a freedom of information request show exactly how and why FanDuel has reentered Texas for daily fantasy sports, against the recommendation of the state’s attorney general office.
One of the documents, a letter from one of the state’s assistant attorney generals, stated that “the State does not agree that you may engage in fantasy sports gambling.”
“We look forward to either the courts or the Texas Legislature conclusively deciding the legality of paid daily fantasy sports,” Marc Rylander, director of communications for the AG’s office, told PlayUSA in a statement.
![Fanduel Legal States Fanduel Legal States](/uploads/1/3/4/8/134869309/905566199.jpg)
Also revealed in the documents is the fact that FanDuel has joined litigation alongside DraftKings in trying to determine the status of daily fantasy sports in Texas.
The backstory on FanDuel and Texas
Two years after closing up shop in one of the key daily fantasy sports markets, FanDuel is back in business in Texas.
The company resumed paid-entry contests last month, pushing back against a standing attorney general opinion. The exchanges that led to FanDuel’s decision reveal the extent to which the issue still lingers in legal limbo in the Lone Star State.
The documents make for an interesting read, and it seems sensible to just walk through the situation from the beginning.
January 2016: Attorney General says DFS is gambling
Late in 2015, Rep. Myra Crownover asked Attorney General Ken Paxton to review the legality of fantasy sports under Texas law.
Crownover specifically questioned FanDuel and DraftKings, who were facing some legal pressure in New York and Nevada. They were also reaching the peak of their national advertising blitz around that time.
The AG returned his opinion at the start of the new year, and it was not favorable to operators.
The crux of Paxton’s opinion is that DFS constitutes illegal betting in Texas. State law prohibits playing any game of chance for a prize, whether or not an element of skill is present. Participants of physical contests are exempt, but third parties speculating on the results of those contests are not.
Paxton offered this example:
If a person plays in a golf tournament for an opportunity to win a prize, he or she is within the actual-contestant exclusion to the definition of betting. If instead the person does not play in that tournament but wagers on the performance of an actual contestant, he or she is gambling under Texas law.
DraftKings and FanDuel had tried to argue that skill was so predominant in DFS as to render chance moot. Paxton cited their premise and dismissed it.
That decision was pretty much the end for FanDuel in Texas.
March 2016: FanDuel and DraftKings go their own ways
Although Paxton did not clearly direct operators to exit the state, FanDuel decided to take its ball and go home.
Is Fanduel Legal In Wisconsin
In March, the company informed its Texas customers that it could no longer let them play paid-entry contests. FanDuel had struck a deal with the AG, allowing it to exit the market prior to May 1 without penalty. As part of the settlement, the two parties agreed not to litigate the matter further.
PlayUSA believes this is the first time this settlement has been published publicly.
[pdf-embedder url=”https://www.playusa.com/wp-content/uploads/2018/09/2016.03.04-TXAG-FanDuel-Settlement-Agreement-Signed.pdf” title=”2016.03.04 – TXAG FanDuel Settlement Agreement Signed”]
FanDuel met its deadline to exit, but its main competitor took the opposite tack. DraftKings released a statement saying it would continue to serve Texas and promptly filed suit against Paxton.
While the matter has lingered in court, defiant DraftKings has continued to operate in the state — even hosting a live event in San Antonio.
August 16: FanDuel knocks at Paxton’s door
After a two-year ceasefire, shells started flying again last month. FanDuel mailed a letter to the Texas AG’s office, providing seven days’ notice of its intentions to re-enter the market.
The newly formed FanDuel Group called the decision a “business necessity,” citing DraftKings’ tightening grip on the industry after standing its ground in Texas. According to FanDuel, the state represented seven percent of its business in 2015, and it faced a “material market disadvantage” by complying.
Here’s more:
FanDuel’s disadvantage in Texas has had a sizable negative impact on its overall business, and its largest competitor has benefited directly from taking a different path. The disparity in Texas operations that has contributed significantly to the shift in market share has negatively impacted FanDuel’s valuation and impeded its ability to raise capital. Given these factors, FanDuel feels compelled by market pressure to re-enter the Texas market.
To try to smooth things over, FanDuel is self-imposing additional restrictions on its Texas business. It will not market directly to its residents, nor will it make any representation that DFS is considered lawful in the state.
Read FanDuel’s letter to Paxton here.
August 23: Paxton responds, FanDuel intervenes
Paxton’s office responded to FanDuel’s letter a week after receipt. The reply came from Deputy First Assistant Attorney General Brantley Starr, and it did not mince words.
Here it is in full:
We received your letter dated August 16, 2018. The State does not agree that you may engage in fantasy sports gambling. The legality of that matter is at issue with another party in a lawsuit pending in Travis County [citation]. We would not object to you joining that lawsuit. Otherwise, the State may pursue appropriate legal actions against you.
“Another party” is DraftKings, and FanDuel immediately heeded Starr’s advice. Although it agreed not to take the state to court, the company formally intervened in DraftKings’ case. Both companies are now listed as plaintiffs in the civil suit.
You can see that filing here:
Fanduel
[pdf-embedder url=”https://www.playusa.com/wp-content/uploads/2018/09/FanDuel-Intervention-Final.pdf” title=”FanDuel Intervention – Final”]
Prior to filing, FanDuel reopened its platform to customers in Texas. It has not promoted the re-entry under its self-imposed silence, but it did offer a brief statement to PlayUSA:
Considering a variety of factors related to the operation of daily fantasy sports in Texas, we have re-entered the market while the issue is being resolved by the state.
Fanduel Legal States Vs
With operators and state officials locked in a stalemate, it looks like the courts may ultimately decide the fate of Texas DFS. Casino norwegen.