Daily Fantasy Sports Companies Investing Big Money in Lobbying
After the first two weeks of NFL football in 2016, once thing is apparent; there are far fewer commercials advertising for daily fantasy sports. The decline in the advertising of daily fantasy sports companies makes sense given the rising costs other factors associated with the legality of these sites. FanDuel Inc. and DraftKings Inc., the largest daily fantasy players, are fighting for their existence on a state-by-state basis. Daily fantasy sports companies are pushing to be classified as a “game of skill” instead of a “game of chance” to be exempt from state gaming laws. Money once used on advertising is now being allocated to lawyers and lobbyists in an attempt to influence law and policy makers.
According to the Wall Street Journal, the Fantasy Sports Trade Association is spearheading the lobbying efforts of FanDuel and DraftKings. Earlier this year, it was reported that the effort included 78 lobbyists in 34 states. An estimated $5 to $10 million dollars will be spent this year on lobbying alone.
The effort appears to be working. On August 3, 2016, New York enacted a law that allowed daily fantasy sports to once again serve New Yorkers. New York, once of the largest markets for daily fantasy sports, was a huge win for the industry. An estimated $800,000 was spent on lobbying efforts in New York.