Remember FanDuel and DraftKings?
The daily fantasy sites that consumed every available millimeter of media last fall have spent the past few months on the down low as attorneys general across the nation inquire as to whether their business models are souped-up fantasy games or straight-up gambling.
As part of that scale back, each site has voluntarily suspended all activity on college sports games, according to a report from David Purdum of ESPN -- beginning after Monday night’s basketball national championship.
"[W]e will work closely with the NCAA and lawmakers on a carve-out for collegiate sports in any proposed regulatory framework moving forward,” DraftKings said in a statement to ESPN. “DraftKings is committed to ensuring that fantasy sports players are able to continue to play these skill-based contests that bring them closer to the sports that they love.”
This is a bit of a strategic play for the sites, as college sports accounted for a fraction of their revenue. ESPN notes college football and basketball combine for just three percent of FanDuel’s revenue, while DraftKings sees 1o to 20 times the action on the NFL as compared to college football.
The college sports establishment has long maintained a violent resistance to any and all forms of betting. In October the NCAA prohibited FanDuel and DraftKings from advertising on NCAA championship events.
The SEC quickly followed suit with its own network.
“Is it a form of gambling, is it a form of skill game, and I think there is some question about that,” SEC commissioner Greg Sankey said last fall. “And I think the appropriate place for us to land as a conference on the SEC Network, again working with ESPN, is not to include that advertising on the SEC Network moving forward.”
Big 12 commissioner Bob Bowlsby agreed with Sankey. “We’ve been wrestling with all the issues around DraftKings and FanDuel,” Bowlsby told USA Today, “which I don’t think anybody can suggest isn’t gambling.”
