DraftKings is the most popular daily fantasy sports (DFS) operated in the United States and has spent millions of dollars in trying to prove that DFS is not gambling. The DFS has built its business around the sports industry and is optimistic about sports betting getting legalized in the U.S.
DraftKings Keen To Embrace Sports Betting
Right now, the Professional and Amateur Sports Protection Act (PASPA), which is the law that governs sports betting legality in the US is under consideration by the United States Supreme Court.
This is because of a recent case of Murphy v NCAA. New Jersey has challenged the PASPA ruling and the Supreme Court is expected to make a decision on the case very soon.
The results could have the 1992 law overturned. If this does happen, it could allow for sports betting to become legalized in all states, instead of just in Nevada.
DraftKings is very optimistic that PASPA will be repelled and has taken a number of steps to prepare itself to enter the lucrative sports betting industry. Market rumors say that Jason Robbins, the CEO and co-founder of DraftKings is prepping the company to move quickly into the sports betting market as he expects the law to overturned in the not too distant future. The prepping is mainly in the form of the development of mobile apps that will allow players to place sports bets across various platforms.
DraftKings could have an advantage that other online gaming companies don't have. Major League Baseball (MLB) has partnered with DraftKings and has branded the company as the “Official Daily Fantasy Game” of the MLB. Should sports betting be legalized, this partnership could develop rapidly and DraftKings could become a premier provider of MLB sports bets.
Multiple States Working On Sports Betting Legislation
In the past few months, sports betting fever has taken hold of multiple state legislatures. They are mainly scrambling to have sports betting laws in place in expectation of the Supreme Court decision. Pennsylvania and West Virginia have quickly followed in the footsteps of New Jersey in putting sports betting laws in place that would allow them to legalize sports betting swiftly should the Supreme Court overturn PASPA. Delaware already has NFL parlay wagering, which is a PASPA exemption but the state is also considering full sports betting regulations.
DraftKings would welcome the addition of another potential source of revenue in sports betting – especially since the sports betting industry is a multi-billion dollar industry. The company has a large database of DFS users and would leverage this list to boost its potential sports betting offering which will provide DraftKings with a major financial boost.
