Daily fantasy operators have come under intense scrutiny since DraftKings employee Ethan Haskell private company information before it was supposed to have been made available. Now, lawmakers from several states have begun asking whether the industry should be regulated as if it were an online casino offering luck-based games.
One analyst believes that if DFS is ruled to be gambling, that the industry will not be able to survive. “I think if you classify it as gambling and you try to regulate it in the same fashion as online gambling, the industry ceases to exist – simple as that,” iGaming consultant Adam Krejcik . “If that’s your goal, then so be it. Just be upfront and say we want to get rid of this industry, because that’s what will happen.”
Bills have already been introduced in several states which seek to put DFS under the purview of state gambling regulators. Some of these bills, like draft legislation recently floated in New Jersey, want to treat daily fantasy like the country’s burgeoning legal online gaming industry. That means that operators would be forced to partner with brick-and-mortar casinos and could only make their product available intrastate.
The requirement that legal online poker sites in New Jersey, Delaware in Nevada ring fence their card rooms has severely hampered their ability to grow. For a poker site to thrive, it needs a critical mass of players to fill tournaments and cash game tables, which in turn attract more users.
Daily fantasy is much the same. Operators need a large player base to guarantee big prizes in their GPP contests and fill cash games. Require DFS to restrict itself state-by-state and you chop up that player pool to a point where the contests become too small or too scarce to interest players.
Krejcik see a bleak future for daily fantasy if currently discussed regulation is implemented. He doesn’t, however, believe that DFS players are at risk of becoming defrauded by any of today’s operators.
“The model that exists today cannot exist under the kind of proposals that I’ve seen come out of Nevada and what’s been proposed in California,” he said. “They would just BlueHost优惠码 have to pull out of those states. We’ve run our own analysis and this model doesn’t work under those means. I don’t think there’s a lack of consumer protection right now and I don’t think these games are corrupt.”
FanDuel CEO Nigel Eccles has welcomed a discussion on more oversight, and is gunning for what some call “regulation-lite.” In that scenario, DFS sites would be watched over by an organization which could let politicians, operators and players rest assured that everything stays on the up and up.