How the SCOTUS Ruling Impacts the DFS Industry

Monday’s Supreme Court ruling that lifted the federal ban on sports betting answered one question, but left plenty of unknowns. Among them is what the decision means for the future of daily fantasy sports (DFS) and specifically the industry monoliths, DraftKings and FanDuel. Here’s where we currently stand on a couple notable talking points.


What’s in store for DraftKings and FanDuel now?

From FantasyLabs co-founder Jonathan Bales: “I think DraftKings in particular will have a betting product out ASAP. They’ve been preparing for this and by all accounts seem ready to roll.”

Indeed, DraftKings has already announced that it will offer sports betting on its site, likely becoming the first combo platform of daily fantasy and sports betting.

FanDuel released a similar statement, which comes as no surprise. And there are even a report that Irish sports betting and gaming company Paddy Power is in talks to acquire FanDuel. That would obviously have massive impact on FanDuel’s presence in the sports speculation market considering Paddy Power’s size and influence in the worldwide market.

Are the DFS companies set up well in the overall sports speculation market?

Bales: “I personally think they’re in a really nice position to capitalize right now. First, even if some people have a negative opinion of DraftKings, it’s an advantage that they’re viewed as a legal site. It’s an immediate edge over a traditional book. They also have all the credit cards and info of people who like to gamble.”

What will the rake or juice look like for both betting and fantasy now?

Bales: “I have no idea if the rake will increase or decrease, but I think overall it’s a good thing for the DFS operators long-term given that it’s a new revenue stream and presumably will be a core part of their business very soon. I don’t think rake needs to be the same across game types, though; as a DFS operator, DraftKings is taking on no risk and matching people who want to play a game. As a book, they’re taking on risk.

“The exception to the last statement is matching people based on bets instead of salary-cap fantasy, which is what I think DK/FD will be in prime position to do right away. They’re also a nice bridge for fantasy players.

“Overall, it’s great news for everyone in sports speculation, in my opinion.”

Does this mean DFS will soon be legal in all 50 states?

That’s still unclear. Right now, DraftKings cannot offer contests to residents of Alabama, Arizona, Hawaii, Idaho, Iowa, Louisiana, Montana, Nevada and Washington. FanDuel additionally does not offer contests to residents of Texas.

In general, DFS enthusiasts and sports speculators alike should be encouraged by the ruling and the quick statements by both major sites.

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