Category Archives: Fantasy Sports

Ex-NBA commissioner Stern invests in eSports startups; Kansas legalizes fantasy sports

The former NBA commissioner David Stern joined in a $5 million financing round for a fantasy eSports startup AlphaDraft, which runs daily and weekly contests for cash and prizes.

The Los Angeles-based Alpha-Draft is similar to other fantasy sports websites such as DraftKings and FanDuel, but focus more on the eSports gaming world versus real-life competition, allowing users compile a team of the top individual gamers and win prizes based on who put together the best lineup.

The company also raised money from Melo7 Tech Partners, the firm led by NBA star player Carmelo Anthony and other investors including Metaphorphic, WME, Upfront, IDG, KEC, MV, and Greycroft.

AlphaDraft is expected to pay out at least $5m in cash prizes and gained 1m users by the end of this year.

NASCAR Officially Along For The Pay Fantasy Ride

NASCAR Officially Along For The Pay Fantasy Ride

There have been fantasy games set up around NASCAR for years with little to no success. The thought was always that with such passionate and engaged fans, a regular schedule and tons of data that the sport was a natural fit for fantasy. However individual sports were slow to gain traction in traditional fantasy, but all that has changed since the pay model has come into vogue.

Golf officials see pay fantasy as a way to engage a younger audience, and while tennis officials still worry about “gambling” and the fact that their game is more global, where fantasy has not yet caught on, there remains more interest there as well. Now it looks like NASCAR is in whole hog, announcing an official deal with DraftKings on Thursday.

Through the three-year agreement, DraftKings will have an exclusive license to develop NASCAR-branded games across the daily fantasy sports category. According to the release, DraftKings will have access to a direct data feed from NASCAR Digital Media that contains real-time statistics which will create all kinds of gaming opportunities for fans watching live on any device, and perhaps most importantly, at the track.

“Pursuing ways to connect with our fans on a daily basis while enhancing their viewing experience has been paramount to NASCAR, and fantasy sports is a core tenet of that strategy,” said Steve Phelps, NASCAR executive vice president and chief marketing officer in a release. “We are committed to growing our fan base, increasing engagement and diversifying our audience and partnering with DraftKings will strongly support all of these efforts.”

It will work this way. In each game, participants are assigned a fixed salary cap they can use to draft their entire roster, comprised of five NASCAR Sprint Cup Series drivers. Scoring categories in DraftKings NASCAR daily fantasy sports games will include finishing position, fastest laps, laps led, position differential and passing differential. NASCAR games on DraftKings will provide fans the opportunity to win one-of-a-kind NASCAR prizes and VIP experiences. DraftKings will offer two different types of NASCAR-themed games – a free game for casual players and paid games for avid followers of the sport.

The success of pay fantasy in NASCAR will not be overnight, as like every sport adapting to the culture will be key. There is no certain way to know how much illegal gambling goes on in and around races, although casual bets are known to take place around every track. What is certain is that NASCAR has a very engaged fan base which is very brand loyal, and if that translates into pay fantasy, DraftKings may be racing towards the checkered flag in yet another sport.

Deflategate Suspension Shifts Odds on Patriots’ Super Bowl Chances

By Frank Scandale @Fscandale @TheDailyPayoff
Las Vegas odds makers say the four-game suspension meted out to Patriots’ quarterback Tom Brady triggered adjustments in their outlook on the Super Bowl champs repeating, but all bets are off on final lines until an appeal is heard.
For those who put the season opener against Pittsburgh back on the board, their point spread against Pittsburgh also got much tighter.
All of this might have been expected given untested, back-up quarterback Jimmy Garappolo is the likely on-deck replacement. But what is still uncertain for odds makers is how many games ultimately Brady will be suspended on appeal, which was filed by Brady Thursday and agreed to be heard personally by NFL Commissioner Roger Goodell.

That decision by Goodell is in itself a controversy, as the players’ union had urged the commission to appoint a neutral party.

All this drama is being played out in public while sports books such as Johnny Avello, executive director of race and sports operations at Wynn Las Vegas, are busy adjusting lines and watching this like a Shakespearean play. Avello said after the news came out on the lengthy suspension, he made adjustments to who wins Super Bowl, dropping the odds for the Patriots from 7-1 to 9-1.

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“I was giving the odds at 5-2 to win the AFC conference and now it’s 4-1,” Avello added. “The reason is if they miss him for four games, the other teams could get possible jumps. Miami, Jets, Buffalo all have been lowered a bit…if it is two games, I’ll back off a little bit, maybe go to 8-1.”
The opening game is Pittsburgh and without Brady Avello says its a pick ’em game. The second game at Buffalo will be “difficult.” Jacksonville is up next and at home and he gives the Pats a win there, but the fourth game (after the bye week) is a tough game with Dallas.
“They could be 2-2 after four games if he’s not around, Avello said. “The Super Bowl champs get a tougher schedule.”
He also believes the Pats will not look for another quarterback.

Meanwhile, Jimmy Vaccaro, head of South Point Casino’s Race and Sports Marketing division, said the point spread for the Patriots-Steelers opener dropped to 1.5 from six points once the suspension was announced.
“Brady can move a game about six points. But with lots of time to prepare, and you adjust for the Superbowl win, we move it up a tick, Vaccaro said. “As for the rest of the division…the Jets, Bills and Miami, they are all about even. So now if you put the four games without Brady, the division up for grabs. We are just waiting an seeing how many games this suspension will be.”

Jimmy Vaccaro

Jimmy Vaccaro

Bookmakers in general had the Patriots to win 10.5 games prior to the suspension but now lowered to 10 games on the over/under.
”You have to remember that Tom Brady is the top quarterback in the league, but you can’t throw away the rest of the team. It is still a Superbowl winning team.”

Jay Kornegay, vice president of race and sports operations at Westgate Las Vegas Resort and Casino, said originally there was not much of an adjustment planned as nothing in the investigation suggested a four-game suspension was likely.

Jay Kornegay

Jay Kornegay

“We were thinking a fine and a one-game suspension,” said Kornegay, a lifelong Broncos fan and Colorado self-professed “homer.” “And a one-game suspension would make minor adjustments.”
Once The Wells report came out, Kornegay took the opening game against the Steelers off the board, where the Pats had been a six-point favorite.
“Once they announced four games, it was chaos for day and we had to make adjustments,” he said.
Additional fallout included raising the Super Bowl champs’ odds for a repeat to 8-1 from 7-1 after the suspension was announced. They also simultaneously changed the Denver Broncos line to 12-1 from 14-1 on the news.
The odds of the Pats winning the AFC conference was raised to 7-2 from 3-1, as well.
Oddsmakers explained the reason for the relatively minor adjustments was because they knew Brady would appeal and there’s a good chance the suspension would be reduced.

“These numbers are based on a two-game reduction already factored into this line,” Kornegay said, adding the line would be adjusted again if the four games are upheld.
Though initially Westgate took the Patriots-Steelers game off the board, it is now back on with the Patriots a two-point favorite. Why?
“They’ve done this before with Matt Cassel (2008 season when Brady got injured in the opener and was out all season) and won about 10 or 11 games (11 actually). They’ll be at home and they’ll be a lot of emotion there.”
He also thinks Coach Bill Belichick will come out blazing with something to prove.

Now, let’s see what the line is on that bet.

 

DraftKings becomes NASCAR’s official daily fantasy sports partner

Daily fantasy sports operator DraftKings has inked a deal to become the exclusive fantasy partner of the NASCAR auto racing organization.

The three-year deal, which was announced on Thursday, gives DraftKings the designation of NASCAR’s ‘Official Daily Fantasy Sports Partner.’ The partnership gives DraftKings the exclusive license to develop NASCAR-branded games for the DFS market.

NASCAR has agreed to provide DraftKings with a direct real-time data feed to give players up to the minute statistics on races and drivers. The data and games will also be available on DraftKings’ mobile app, giving DFS players something to do while waiting for the cars to zoom by their particular seat in the grandstand.

DraftKings is promising both free and paid games in which players pick a team comprised of five NASCAR Sprint Cup Series drivers. Scoring will be based on finishing position, fastest laps, laps led, position differential and passing differential. In addition to cold hard cash, DraftKings players will have the opportunity to win unique NASCAR prizes and VIP experiences.

One Sports Business Makes CNBC’s Disruptor 50 For 2015, And It’s Winning In Pay Fantasy

One Sports Business Makes CNBC’s Disruptor 50 For 2015, And It’s Winning In Pay Fantasy

Uber, AirBnB, Pinterest, Dollar Shave Club. All brands that have challenged the establishment and lived to tell about it. They buck trends and carve their own way, and that’s why they were selected to the CNBC Disruptor 50 list for 2015.

CNBC features private companies in 16 industries-from aerospace to financial services to cybersecurity to retail-whose innovations are revolutionizing the business landscape. These forward-thinking upstarts have identified unexploited niches in the marketplace that have the potential to become billion-dollar businesses, and they rushed to fill them. In the process, they are creating new ecosystems for their products and services. They ranked those venture capital-backed companies doing the best job.

On the list was one sports industry brand, and it wasn’t ESPN or a new sneaker startup or even Under Armour. It was the brand that seems to be advancing and challenging even the new world of fantasy sports elite; the more established and much larger and higher valued Fan Duel.

It was DraftKings, which chimed in at number 50 and is the latest feather in the crown, so to speak, for the attacker brand of pay fantasy. The fact that a pay fantasy brand made the list is impressive. The fact that no other sports brand made it is even more impressive. Here is the full list, courtesy of CNBC.http://www.cnbc.com/id/102609977

Fantasy Sports Could Suffer the Same Fate as Poker

Daily Fantasy Sports has exploded in popularity over the past couple of years due to a lack of regulation, a fervent desire for people to gamble, it’s turned regular people into millionaires, DFS is touted as a game of skill and it’s presence seen and felt all over the sports networks, so much so that it has politicians and anti-gambling nuts up in arms calling for bans. DFS meteoric rise and its lack of regulation could force the US government to enact some sort of limits or ban that could crush the burgeoning industry.

Does this sound familiar? If you’re an online poker player, it should.

The similarities between the rise of online poker and the dally fantasy sports industry is eerie. Both are clearly gambling, both are touted as games of skill rather than luck and both piss off the powers that be who would rather have a say on how allegedly free Americans can spend their entertainment dollars.

When the US Government passed the Unlawful Government Enforcement Act back in 2006, there were carve outs for both horseracing and fantasy sports but it’s clear the politicos didn’t realize that fantasy sports would evolve so much to allow gamblers a daily fix of what is essentially sports betting.

DraftKings Finds Another Partner With A Million Dollars At Stake

By @TheDailyPayoff

You have to give it to DraftKings for looking high and low to find not just the bigger partnerships, but the most creative niche ones to draw attention in their Mano a Mano battle with Fan Duel as leaders in daily pay sports fantasy.

It’s latest partnership came Tuesday, when DK joined forces with another “disruptor” in sports, the Boston-based, The Basketball Tournament (TBT), a single-elimination, five-on-five, winner-take-all, open-application tournament.

The pair joined forces to come up with a promotional partnership for their 2015 event, which runs in July and August on ESPN (another DraftKings partner by the way). One of the 96 teams will get some elite status as being the “official” DK entry in the field.

Here’s how it works according to the press release: In order to win the DraftKings sponsorship, teams and their fans will compete in a DraftKings daily fantasy game centered on the NBA Conference Finals. Whichever fan or TBT participant wins the contest will also win a premium experience for himself or herself, a guest, and each member of his or her team.

The DraftKings sponsorship package includes travel to a region of the team’s choice, DraftKings-sponsored uniforms, and an apparel package from other official TBT providers, including Rock ‘Em Socks and iSlides. The uniform sponsorship represents a first for DraftKings and a first for TBT as well.

The interesting aspect of the partnership is its ties to the play in the NBA Conference Finals. This way a wide number of the participants ( 96 teams in the field when it is unveiled)  makes for a solid growth pattern for a sport – hoops – that is not as much in the DK sweet spot as say baseball or the NFL. It also gives DK visibility in July when fans might be away from pay fantasy and are getting ready to gear up for NFL, which remains the big money area for pay fantasy.

“Our business is built around the passion of sports fans. The idea that anyone can build and be part of a championship team in The Basketball Tournament aligns perfectly with our DFS offering,” said Jeremy Elbaum, Vice President of Business Development at DraftKings in the release. “At DraftKings, any given day someone could skillfully create the perfect line-up and become a millionaire.”

In 2015, The Basketball Tournament will have 96 teams playing for a winner-take-all prize of $1 million. Opening rounds begin July 10-12 at regional sites in Los Angeles and Atlanta and continue July 17-19 in Chicago and Philadelphia with the winners playing down to an August 2 final in New York. ESPN’s platforms will carry a bulk of the early round games, with the semi-finals and finals airing live on ESPN as previously reported.

The question looms will this type of promotion change the game for Draft Kings? No. However like some of their other niche partnerships they are showing creativity and flexibility that brings casual sports fans to their platform and helps increase brand loyalty overall. Every time they touch a fan in a sport they are interested, they have a chance at conversion and for sure anyone interested in TBT is a core hoops fan or participant. It is low cost, with a chance at solid impact for DraftKings, and a nice talking point for an event looking to find its footing, a solid bet on a partnership for all involved.

More Probable Than Not Observations on Deflategate and Other Sports Trends

By Terry Lyons @terrylyons @TheDailyPayoff

After four months of speculation, accusation and humiliation, the National Football League via an independent investigation came down from their Park Avenue mountaintop to decry, in a 243-page report, “that it is more probable than not” that New England Patriots QB Tom Brady and two locker room attendant/ball boys were involved and aware of circumstances involving the improper deflation of footballs used in this year’s AFC Championship football game.

With that in mind, I thought it might be useful to examine a few other occurrences that might be “more probable than not.”

First, regarding the football game in question: Because of the 45-7 score in favor of the Patriots, it is more probable than not that the slightly deflated footballs utilized by the Patriots had no bearing on the outcome of the game. However, it is more probable than not that they helped inflate the number of fantasy points accrued by RB LaGarrette Blount.

With the report conducted by Ted Wells and a team of lawyers from Paul, Weiss, Rifkind, Wharton and Garrison coming down and the NFL soon to dole-out punishment, it is more probable than not that back-up QB Jimmy Garoppolo will be starting when the NFL season kicks off with the Patriots vs. Pittsburgh Steelers game on September 10th.

Leading up to that date, it is more probable than not that Patriots head coach Bill Belichick will no longer be quoting Mona Lisa Vito.

Away from football, it is more probable than not that basketball fans raised their eyebrows when Madison Square Garden boss Jim Dolan hired Isiah Thomas to be the president and co-owner of the New York Liberty. It is also more probable than not that Bill Cosby will not be a WNBA owner.

In boxing, it is more probable than not that a few million fans who purchased the Mayweather-Paquiao pay-per-view for $99 will be stupid enough to do it again if there is a rematch.

In hockey, it is more probable than not that viewers will change the channel from a playoff hockey game unless Emmy Award winning play-by-play man Doc Emrick is calling the game.
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It is also more probable than not that I would never look to CNBC or USA Network for a Stanley Cup playoff hockey game.

Along those lines, for some reason, I have tabbed TruTV as a favorite on my remote, but I haven’t watched a minute of TruTV other than NCAA March Madness.

It is more probable than not that most of the NBA’s postseason awards will leak to the media before they are officially announced by the league. Similarly, it is more probable than not that the NBA Players Association will screw-up their own version of postseason awards.

It is more probable than not that the NCAA will intervene and put a stop to open, free transfers of graduate students. And, it is more probable than not the NCAA will not care when there is significant backlash from the players, err, student-athletes.

It is more probable than not that, after David Letterman and Jon Stewart retire, the funniest late night tv act will be the NBA on TNT’s Ernie, Shaq, Kenny and Charles.

It is more probable than not that the NBA will ignore the problem of “Hack-A-DeAndre Jordan” and just let the trend play out.

It is more probable than not that NBA reporters will not bring up what might be in James Harden’s beard.

It is more probable than not that Tim Duncan will be playing next April 25th, on his 40th birthday.

Heading into The Players Championship, the fifth major so-to-say, it is more probable than not that Tiger Woods will not catch Jack Nicklaus or … Wilt Chamberlain.

It is more probable than not that LA Clippers reserve power forward Big Baby Davis will never be mistaken for the Royal baby.

And now for some serious predictions:

It is more probable than not that American Pharoah will not win the Triple Crown, but I like his chances.

It is more probable than not that the Stanley Cup Finals will involve teams that no one cares about.

It is more probable than not that Golden State will win the NBA championship, and I like their chances even more than American Pharoah’s.

And lastly, it is more probable than not that there are already too many candidates for the 2016 Presidential election.

Elite former Athletes Tackle Gambling, Fantasy and Life After Playing

By Joe Favorito @JoeFav and Frank Scandale @FScandale @TheDailyPayoff

No matter what the sport or the level of management, the infusion of gambling and fantasy gaming into the conversation is hard to avoid. Tuesday night at the regular monthy gathering of the New York Sports Venture Capital proved the point as three elite former athletes took turns tackling those and other hot topics.

Former member of the New York Giants Charles Way, former ATP pro Patrick McEnroe, and former college basketball star and ex-coach of the New York Knicks and Vancouver Grizzlies Stu Jackson did not hold back when talking about the issues and challenges athletes face post playing career, nor did they shy away from the issue of analytics, fantasy and gambling.

Television personality Julie Alexandria kicked off the night by focusing on the breaking news of the day – Isiah Thomas back in basketball in New York, this time with the WNBA’s NY Liberty team.
McEnroe said his first reaction was, “Are you kidding me?”

From there the night moved fast.

While some of the time was spent talking about how the athletes managed challenges, filled the gaps in their lives after a lifetime of training and playing and forming new careers in business, the conversation soon turned to analytics and pay fantasy for both the athletes and the business of sport.

McEnroe, who recently finished his run as USTA Director of Professional Player development and remains active in broadcasting, talked openly about the issues of gambling in tennis, a sport which he said is the second-most wagered on sport in the world. He said most of the players do not earn much on the circuit – and is a proponent of changing the way prize money is distributed – so the temptation to shave a match at the lower levels is great. He said players at those lower levels have been suspended for questionable playing.

Jackson, now Associate Commissioner for The BIG EAST Conference, talked about the need for an understanding of analytics to get ahead in business and the value fantasy gaming has brought to the NBA in terms of fan engagement.

“There is no doubt pay fantasy has been very important to the engagement of fans, especially young fans today, and I think everything leagues like the NBA have done to embrace, rather than shun, the gaming/gambling space is the right thing to do. It’s not going away, it’s only going to grow,” Jackson added.
Jackson said he is a fan of fantasy because it will help the sport grow globally.

He also said he is a big proponent in analyzing data. “The day of saying, “I know it when I see it,” is over.”

McEnroe, admittedly not a fantasy player, was a lot more direct about the issues and opportunities technology, and fantasy sports, have in tennis. “Hey tennis was first with electronic line calls which have now become a part of the game, and we need more innovation to keep going,” McEnroe said.

Asked how his brother, famed hothead superstar John McEnroe, would have fared with the replays changing the calls, Patrick quipped that his brother still would have argued with the technology.

“As far as fantasy, I view it as gambling and although I don’t play, we know it (gambling) goes on and the sport has had its issues with scandal because of the wide discrepancy in pay for the athletes. As long as there is still such a wide gap and gambling is out there unregulated, there will probably continue to be some problems,” McEnroe said. “Fantasy is like legalized betting.”

Way, now of the staff at the NFL, deflected most of the talk around the gaming/gambling issue, not surprising given the NFL’s stance as being the most dogged public opponent on the issue of legalized gambling. However,he acknowledged the need for continued engagement through analytics and the growth of fantasy as an engagement tool, although he did add that, “Unlike other sports, success in football is much more tied to chemistry and culture, something which analytics helps but doesn’t take precedence over at this point.”

How all this ties into the careers of today’s athletes is not perfectly clear, but all three acknowledged that the success post-career must involve deep thought and commitment to surrounding yourself with the right people on the business side as you did when you were playing. That will now involve more of an understanding of analytics for business or sport, while keeping an eye on the growing business of gaming as it evolves into a lucrative profession for some athletes post-career; not in being a greeter in a casino as happened in year’s past, but as a trusted advisor for companies looking to engage in sport through analytics and potentially pay fantasy.

Where all the pay fantasy, legal gambling aspect of sport goes in the future remains up for great debate in the United States, but the conversation across sports continues to lead back to one thing; the business of engaging fans is more and more tied to data, analytics and fan engagement through fantasy, whether you are on the tennis court or the gridiron, and the pot continues to grow.

When Fantasy Became An Obsession

By TERRY LYONS @terrylyons Contributing Columnist for @TheDailyPayoff

It started with the very best of intentions.
But as with so many major (or minor) vices in life, it quickly grew into an obsession. The weekly NFL Fantasy League, a competition involving a bunch of writers in the Dallas-Fort Worth area and a few PR gurus in Dallas, LA and New York, morphed into a full-blown NBA Fantasy Sports League.

The year was 1983 and in a Boston Globe column, Celtics forward Larry Bird casually described the way he determined how impactful every player’s statistics were on a nightly basis as he tried to figure out a way to compete against his nemesis Earvin “Magic” Johnson despite the fact they only saw each other twice a season. Bird added the “positive” stats – points, rebounds, assists, blocked shots and steals then subtracted the “negative” stats – missed field goals and free throws, turnovers and personal fouls.

Little did he know at the time, but Bird had created the best possible formula for an NBA fantasy sports game. At a later date, it was determined that some personal fouls might actually be a “positive” occurrence, so that stat was banished from the equation and “The Larry Bird League” was officially created.

To protect his innocence, I will leave-out the name of the commissioner and mastermind of the Larry Bird League, but suffice to say, he was (and still is) one of the best writer-reporters the NBA beat has ever seen. He went to the lengths of actually having Larry Bird draw the order of the league draft nearly every year, usually at an NBA preseason tilt in Hartford, CT or Springfield, MA. In one instance, maybe in 1986 or ’87, while the Larry Bird League commissioner was busy conducting the annual draft while covering games on the east coast, one of the Bird League franchise owners was at The Fabulous Forum in LA, covering Magic Johnson and the LA Lakers.

That rival Bird League team owner met-up with the one and only Magic Johnson for a pregame interview, some 12-24 hours after that year’s fantasy draft had been conducted, and he explained the situation to the Magic Man.

“I got you with the fifth overall pick,” he told Johnson.

“Fifth?” Magic questioned, his competitive instincts surfacing.

The writer had to explain that in the Bird League you had to fill out a line-up based by position, and the top centers were a hot commodity and were often first-round picks. centers like Hakeem Olajuwon and Patrick Ewing were always gobbled-up early.

“Oh, okay,” said Magic, still not quite understanding the concept of fantasy sports.

Then, as only Magic Johnson could put it, complete with that friendly smile, “So? Who we got?”

That was the end of innocence in our world of fantasy sports.

Fast-forward to the 1992 Olympic Games in Barcelona, the year the one and only USA Basketball Dream Team was to prove they were the best team ever assembled in any sport. Ever.

One or two nights before the opening ceremonies were to take place, the esteemed commissioner of the Larry Bird League, on assignment to cover the Olympic Games, had managed a feat almost as difficult to obtain as a gold medal in the Decathlon. The commish obtained admission into one of the most secure locales on the planet, outside of the Situation Room in The White House. He was in the lobby of the Hotel Ambassador, just a few steps off the Ramblas in Barcelona. It was the hotel headquarters for the Dream Team.

It was early in the evening and the order of the draft needed to be determined because the actual draft would be taking place only hours later at 7 Portes seafood restaurant in Barcelona. Not all the regulars of the usual NBA Bird League were on hand, but a few others eagerly snapped up the expansion franchises, because we needed all fantasy team owners to be on hand for a live draft to be conducted over dinner, on – probably – the last night of the Olympics we’d actually have a decent dinner, aside from fast food gorging or a press room “Jamon and cheese.”

The lobby of the Dream Team hotel in Barcelona was pretty small, as the Hotel Ambassador was designed to be a small, commuter hotel, not much different than a Marriott Courtyard or Holiday Inn Express. The rooms were rather small and the lobby bar had only six or eight chairs. On the night of our draft, Bird sat at one of them, on the far right side, chatting with a few of his buddies who accompanied him on the trip. They were going to take in an Olympic baseball game and bird had a USA Basketball hat on, as he always did.

I had my back to Bird and we were excitedly planning for the upcoming draft, gathering all team rosters and making sets so each franchise owner would be able to draft later that night. Of course, we were also strategizing a bit, noting that the USA players, many who would only play 15-20 minutes per night, might go in the second or third round.

Suffice to say we were totally ignoring Bird and his small entourage and we thought he was ignoring us.

The commissioner of our league had scribbled out the numbers – 1-through-8 – on little pieces of paper and he crumpled them up into tiny pieces.

Now, the important part!

Not a single word was said.

I turned around, pivoting, so-to-say, on the great Larry Bird, who proceeded to remove his cap and hold it out as he rolled his eyes and shook his head just slightly.

The Bird Commissioner reached over, past me, and tossed the tiny papers into the baseball hat. Bird handed me the cap and I raised it as high as I could so Larry had to reach up to pick the papers – one at a time – out of the cap, thus determining the order of our draft.

Upon Bird selecting the seventh team, I brought the cap down to eye level and we all observed the one piece of paper left in the cap.

I grabbed the paper, unfurling it as I did, and Bird promptly placed the cap back where it belonged – on his scruffy, blond locks.

We went back to our business and Larry returned to his cold cervaza San Miguel on the bar and continued his conversation with his two friends.

Bird knew the routine.

Now, the reason for that interesting intro is simple. Our basic fantasy NFL league had become the prototype for an NBA fantasy sports game and that morphed into the Olympic Games basketball version where Puerto Rico’s leading scorer Jose Ortiz or Australia’s Andrew Gaze were pure gold, in fantasy terms. Brazil’s Oscar Schmidt, now a Hall of Famer, was another fantasy juggernaut and so was the late Drazen Petrovic or his Croatian teammate Tony Kukoc, although Michael Jordan and Scottie Pippen shut Kukoc down mightily in the two games against the USA. Charles Barkley of the USA was the most valuable American player, as he led the team in scoring and I remember being happy with “a couple top Argentines” drafted in the middle rounds.

Fast-forward two years to the 1994 World Championship of Basketball, held in Toronto, and one of our colleagues, who had attended the 1990 World Championship and ’92 Olympics and had a keen fantasy mind, drafted Richard Matienzo, the top Cuban player in our “WCOB” Bird League. Matienzo was Cuba’s leading scorer and rebounder, but he failed to show up to the team’s August 11, 1994, game against Germany. He had defected.

“He left the hotel Wednesday night with his friends but he hasn’t come back,” said Cuba’s head coach Miguel Calderon Gomez to The New York Times, refusing to speculate as to the whereabouts of his player.

In the cold, cruel world of fantasy, where the previously productive player would now be getting giant goose-eggs on a nightly basis, we applied the “Doug Moe Rule,” which quite simply was “Tough Shit.”

With the foundation laid solidly, our group expanded our fantasy borders to all types of competition. If it worked for the NFL, the NBA and the Olympics, it surely worked for NBA Summer League, correct?

Yes, some of the writers actually held a Midwest Rookie Revue Bird League one summer. And, that was not the most far-fetch fantasy league we conducted. There were impromptu leagues for ice hockey at the Nagano Olympics, there were team-based games for World Cup soccer, there were single night fantasy games for the annual NBA All-Star Game and The Finals. There were great Ryder Cup golf leagues, MLB All-Star leagues and Kentucky Derby Fantasy leagues. You name it, we did it.

The most ridiculous?

One winter night while attending a women’s corporate basketball game in Manhattan where some of the NBA Entertainment staffers were competing, and two of the longtime members of the Larry Bird League were in attendance, so we quickly scratched out the roster numbers of the players on the two teams.

Let’s just say, I remember I won because I had attended a few games before the Rec league game that night, scouting the players, of course. So, I can now confess, and thank star NBAE power forward-center Kathleen Reidy who always put up a double-double.

Gambling in the Sports Digital Space with Chris Russo

By Joe Favorito @JoeFav @TheDailyPayoff

As we enter perhaps the busiest sports gambling weekend in some time, there are few who understand the convergence of digital, fantasy and sport better than Chris Russo.
Russo has been ahead of the curve in his time at the NFL, in his time as the founder of what was Fantasy Sports Ventures and became The Big Lead, and now is back in the business with Fifth Generation Sports, a boutique agency with capabilities in marketing, research, digital and social media with access to investment capital that will again look to be ahead of the curve in the highly fluid and volatile world of sports and digital.

94AE3405CA33487F91B4EF5BFE56E370.ashxThe Daily Payoff caught up with Russo to ask him about his new venture, where the opportunities, and more importantly where the misconceptions are in the digital sports business.

TDP: You have been involved in a number of startups in sports and digital, what will your latest project now be doing?

CR: Fifth Generation Sports will be focusing on the business of sports and technology. We’ll provide a range of consulting and intelligence services. I’ve also completed a relationship with MESA Global, a boutique investment bank, and I’m excited about helping build a sports M&A practice at MESA.

TDP: Fantasy Sports ventures was ahead of the curve when it launched. Are you surprised with the way the business of pay fantasy has now exploded?

CR: I am not really surprised that pay fantasy has become a huge business. The leading companies in the space have done a great job with their products and marketing. Also, the fantasy business was becoming stale and needed some type of major innovation. Daily fantasy is the perfect formula because it brings in new audiences and also makes daily sports like basketball, baseball, and hockey attractive, while football continues to be very popular.

TDP: What is the key to success in any fantasy opportunity going forward?

CR: I believe that many new opportunities to be developed in the coming years will be tied to the daily fantasy ecosystem. I expect that there will be a number of new products and services that provide some type of value to the daily player. Also, products that best leverage mobile consumption will be more likely to succeed.

TDP: How important is mobile activation?

CR: Mobile is critically important to any digital sports property. In many cases, more than half of the digital usage is driven via mobile. Unfortunately, the monetization of mobile sports is lagging, as it is in other sectors, but I do believe that the dollars will ultimately follow the eyeballs.

TDP: Who are some of the people you follow in the business and why?

CR: I don’t necessarily follow specific people but keep an eye on areas of innovation in digital sports. There are many interesting developments in OTT (Over The Top) , for example. We’ve already discussed the amazing growth of daily fantasy. Also, there has been a lot of excitement in the youth and high school sports space.

TDP: The NFLt announced their long-awaited YouTube deal. How important is that partnership for the YouTube brand?

CR: YouTube brings an enormous audience, and I think it makes sense for the NFL and other sports leagues to leverage that platform for fan development purposes. While the audience has been there for many years, my sense is that the monetization opportunity for the leagues in this context, and in social media generally, is increasing, which is why we see renewed focus on these types of deals.

TDP: How important is it for a digital sports brand to be global? Is hyper-local content enough?

CR: I believe that being a global brand is important for many sports properties and businesses, but not necessarily for all. Digital gives virtually every sports property a low cost way of creating a global footprint, but making money overseas may only be viable in the short run for certain properties. Regarding local content, I think the most important trend is the creation of new software and publishing tools that enable the local sports entities to efficiently create their own content. This allows a bottom up approach to local sports vs. the top down approach was which used in the early days of the internet.

TDP: What’s the biggest misconception people have about the fantasy space?

CR: The biggest misconception is that it’s very easy to make a lot of money in fantasy sports. While it’s true that several of the companies are doing very well, the space is extremely competitive and there are many companies that need to work hard simply to keep afloat. While I would encourage new companies to pursue their fantasy sports initiatives, it’s not an easy road.

Chris Russo Bio:
Chris Russo is a recognized industry leader and innovator in digital sports media. Mr. Russo’s diverse experience in digital sports includes his tenure as head of digital media for the NFL, his entrepreneurial success as CEO of Big Lead Sports, and his current roles as President of consultancy Fifth Generation Sports, Senior Advisor at MESA Global and adjunct professor at NYU’s Tisch Institute for Sports Management, Business and Media. Highlights of his career include:
NFL
Mr. Russo served as Senior Vice President, New Media for the National Football League. In that role, he had broad P&L responsibility for the digital media business unit and oversaw all day-to-day operations, including content, advertising sales, marketing, and business development. He completed digital media transactions with total value in excess of $1 billion, including arrangements with Sprint, eBay, Yahoo, CBS Sports, AOL, and Sirius Radio. He launched the NFL’s first-ever fantasy football products and also played a critical role in the creation of the “NFL Internet Network” business model, aggregating NFL.com and 32 team sites into a unified property. Mr. Russo received the Sports Business Journal 40 under 40 Award for 3 consecutive years and is a member of the Sports Business Journal Hall of Fame.
Big Lead Sports (aka Fantasy Sports Ventures)
Mr. Russo served as Chairman and CEO of Big Lead Sports (aka Fantasy Sports Ventures), the largest independent online sports property in the U.S., reaching more than 20 million unique users and consistently ranking in the top 5 among all online sports properties. At Big Lead Sports, Mr. Russo aggregated 500+ sports sites via strategic acquisitions and business arrangements. He completed innovative ad programs with brands such as Coke, Sprint, Coors, and Gillette/P&G. Big Lead Sports was nominated for a “Best in Digital Media” award by the Sports Business Journal. In 2012, Mr. Russo sold the company to USA TODAY.
NYU
Mr. Russo currently serves as Adjunct Instructor for the Tisch Institute for Sports Management, Business and Media. In that role, he teaches NYU’s Digital Media course to graduate students. In 2013, Mr. Russo received the NYU Sports Business Society Media Award for career accomplishments.
Mr. Russo received his BA from Northwestern University and his MBA from Harvard University.

FanDuel gets name on Mayweather’s trunks, seeks 16th NFL team deal

Daily fantasy sports operator FanDuel has purchased branding rights on boxer Floyd Mayweather Jr.’s trunks for his fight against Manny Pacquiao on May 2.

On Thursday, EPSN reported that FanDuel had purchased the rights to have its name on the belt line of Mayweather’s trunks. FanDuel didn’t disclose how much it paid to get that close to Floyd’s crotch but the deal comes with six tickets to the fight, valued at $10k apiece, that will be given away in pairs to the winners of three upcoming fantasy contents. The winners of these contests will also receive free hotel, airfare and a meet-and-greet with Floyd himself.

FanDuel hasn’t been shy about spending its investors’ capital on pricey sports tie-ups. This week the company announced it had pushed the number of mutli-year sponsorship agreements it has reached with National Football League teams to 15 and another deal with the Chicago Bears is in the works. FanDuel’s rival DraftKings has a comparatively paltry three NFL deals.

However, the NFL’s vehemently anti-betting stance means FanDuel’s deals don’t come with the visibility FanDuel would have preferred. While FanDuel will enjoy stadium signage, radio and digital advertising, NFL spokesman Brian McCarthy told USA Today that FanDuel’s deals are similar to deals teams have struck with casinos – no NFL team logos or adverts on FanDuel’s website and FanDuel can’t identify itself as an ‘official’ team or league sponsor.

Kansas AG says Fantasy sports is not illegal in the state

Kansas Attorney General Derek Schmidt released an opinion that states fantasy sports leagues are not considered illegal lotteries under Kansas Law, because they are games of skill.

Schmidt issued the legal opinion on Friday at the request of a Kansas House member who opposes gambling. In defining fantasy sports, the proposal says they’re [fantasy sports] contests determined by the skill of the participants. Schmidt said one key element of a lottery is that chance determines the outcome.

The opinion opposed the previously published position of the Kansas Gaming and Racing Commission (KRGC).

For several years, the KRCG had interpreted the state’s gaming law and indicated on its website that “chance predominates over skill in fantasy sports leagues” and that “if a fantasy sports league has a buy-in (no matter what it is called) for its managers and gives a prize, then all three elements of an illegal lottery are satisfied.”

FanDuel and 15 NFL Teams in Multi-year Sponsorship Deal

By @TheDailyPayoff

The battle between the two elite companies in the daily pay fantasy space escalated Wednesday.
Terry Lefton of the Sports Business Journal broke the story https://www.sportsbusinessdaily.com/Daily/Issues/2015/04/22/Marketing-and-Sponsorship/FanDuel.aspx that FanDuel, just weeks after rival Draft Kings announced an exclusive deal with MLB, had signed one-year exclusive deals with 15 FL teams.
The new deal gives the biggest player in terms of participants in the growing pay fantasy space at least a marketing edge in the largest pay fantasy sport – The NFL. The 15 NFL teams joining Fan Duel were the Bengals, Colts, Packers, Bills, Eagles, Rams, Browns, Jaguars, Ravens, Buccaneers Jets, Redskins, Chargers, Lions and Texans.

Since Yahoo has an exclusive deal with the 49ers and three NFL teams are in states where paid fantasy games are illegal (Arizona, Louisiana, and Washington), it gives the New York-based company a leg up as the NFL Draft comes into focus (New England and Denver have already signed Draft Kings deals, and Kraft Sports, like ESPN and MLB, have taken equity positions with Boston-based Draft Kings).

According to Lefton’s report, last Friday, the NFL released to its teams new marketing regulations governing their deals with paid fantasy sites. The new rules essentially make daily paid fantasy sites equivalent to gambling casinos in ways clubs could market with them.

Yahoo! to launch daily fantasy sports product this summer

Internet colossus Yahoo! plans to enter the daily fantasy sports (DFS) business this summer.

After reporting an underwhelming Q1 profit of $21.2m on revenue of $1.23b, CEO Marissa Mayer announced that Yahoo! was embracing the “rising trend around daily fantasy games.” Touting the company’s 16-year history of offering season-long fantasy contests, Mayer revealed that Yahoo! believes it has created “a unique take on this [DFS] genre.”

Mayer made note of the fact that “normally, we do not announce products before launch but this has been such an area of interest for our fantasy players and our investors that we wanted to announce that we have a new daily fantasy offering in the works that will launch this summer.”

Yahoo!’s entry into the DFS arena will likely coincide with the arrival of Amaya Gaming’s new DFS product, which Amaya has pledged will be in place before the new NFL season kicks off. Both sites will provide a welcome counterweight to a market that was increasingly looking like the exclusive domain of FanDuel and DraftKings.

Howling About Fantasy Sports: Catching Up With Rick Wolf

special thanks to Joe Favorito @JoeFav

While the casual fan may think that all this “fantasy” stuff is new from a business perspective, in reality the roots of fantasy are a few decades old, and there are few who understand the history, the success, and the failures of the business better than Rick Wolf. A Fantasy Sports Trade Association Hall of Famer, Wolf has been at the front edge of many of the biggest growth opportunities in fantasy for years, and now runs a consultancy, Full Moon Sports, dedicated to helping nurture and grow businesses in the fast moving space. He is also the president of Fantasy Alarm, one of the rising brands in the space.
Wolf has also authored a three part series on how to get into the business as part of his Fantasy Alarm work.
We caught up with Wolf to get a history lesson and a look forward into what is going on in the business.
Q: When you look at potential consulting clients, how do you determine what can work and what can’t?
 
A: When I look for projects to work on, I look for two things: (1) Does this project advance the fantasy sports agenda? That is will it raise the awareness of fantasy sports or will it introduce a new area of fantasy sports that will increase the number of players. (2) How helpful can I be to what they are trying to accomplish?
Q: Where is the biggest growth area in fantasy right now for a startup?
 
A: Right now, there are a lot of “me too” start-ups in fantasy sports. Quite frankly that is great. The smartest people start-up things that will generate some revenue while they find their niche. The biggest revenue growth area is still in Daily Fantasy Sports as it has only scratched the surface. The biggest pure penetration growth for increasing the number of players is still in the “second-screen” area. Single-game free fantasy sports will be bigger than anything we have ever seen as far as participation goes.
Q: With all the growth that has occurred in the fantasy sports business in the past two years, what is the one aspect of the business that has surprised you the most?
 
A: Honestly, it has surprised me that new companies will label things that are clearly gambling as fantasy sports or that daily fantasy companies have been unable to stay away from connecting themselves to gambling by using the words “bet”, “wager” and “gambling”. Fantasy sports is a game of skill like chess.
Q: The NFL just announced teams will be able to create partnerships with pay fantasy companies for a year and then the business will be reevaluated. How do you think they will determine success?
 
A: A hedge like this is very difficult to understand. Fantasy Sports is a cornerstone of the NFL. The NFL is a member of the FSTA. By placing a time limit on it, you don’t allow partners to long-term plan and INVEST in businesses with the NFL. The reality is that the all sports leagues have so much invested in the broadcasts that they should embrace fantasy sports as deeply as possible since it DRIVES VIEWERSHIP in every way imaginable.
Q: What sport has the most potential for growth in fantasy sports?
 
A: Globally, I think the NBA has the most impact right now and is growing in Europe and Asia.
Q: Many outside the US still consider the idea of fantasy sports to be an American phenomenon. Do you see the culture changing for the business abroad?
 
A: This is an American assumption. Fantasy sports is wildly popular in England, Australia, China and Japan amongst other places. In 2009, we tried to understand this and with IPSOS-Reid studied some international markets. In England 22% of adults played fantasy soccer or fantasy cricket. This is a lot bigger than the US.
Q: How does DraftKings announced partnerships with MLB and ESPN change the landscape of pay fantasy?
 
A: The arms race between Fanduel & Draft Kings has escalated beyond dollars and cents right now. It is great for the attention on Fantasy Sports. A deal like this always depends on the large partners showing up as partners. Almost exactly a year ago, I wrote this about partnerships in Fantasy Sports.
In this case it is especially poignant. I quoted the 1949 movie, The Fountainheadfrom the 1936 book by Ayn Rand: “In all proper relationships there is no sacrifice of anyone to anyone. An architect needs clients, but he does not subordinate his work to their wishes. They need him, but they do not order a house just to give him a commission. Men exchange their work by free, mutual consent to mutual advantage when their personal interests agree and they both desire the exchange. If they do not desire it, they are not forced to deal with each other. They seek further. This is the only possible form of relationship between equals. Anything else is a relation of slave to master, or victim to executioner.”
Time will tell if it is a true partnership.
Q: What was the biggest business mistake made in the fantasy sports space?
 
A: The world pays for executions and not ideas. People who come to me often tell me they have the next disruptive or revolutionary idea for the fantasy sports space. Fantasy sports players are slow to adopt new things, so even when things are “disruptive” or “revolutionary”, it takes years for them to penetrate. Look at daily fantasy sports for instance. Snapdraft was conceptualized in 2004 (I think), but was not legal until 2006. Instant Fantasy Sports existing illegally, but had very few customers. In 2006, when UEIGA made it possible to have daily fantasy sports, the fantasy sports player was happy. Fanduel and Draft Kings have advanced the number of players quickly by spending 10s of millions on marketing. Yet, they only have 8-10% of fantasy players trying this so far.
Q: Who are some of the business people you watch in the space?
 
A: This will sound odd, but I try to objectively watch everyone. Some of the best business ideas will come to me from people I have not met or fantasy sports players.
Q: What are the biggest changes, positive and negative, that you see in the fantasy sports business coming in the next year?
 
A: There is a minor crack in the business people on the seasonal side of fantasy sports attacking daily fantasy sports because of a small group of entrepreneurs who cannot stop connecting fantasy sports to gambling when the two couldn’t be farther apart.
It is critical that we do not allow that chink in the armor to expand regardless of how the egos play their cards. The seasonal content & service providers need to realize that daily fantasy sports created an opportunity to rejuvenate fantasy sports that they should embrace. The daily fantasy sports providers need to understand that they cannot simply do as they please with the use of gambling words, misleading promotions and should be thankful for what came before them that paved the way for the existence of this genre. Both groups should also realize that there will be something coming after them that will be more popular than both and they both should be hoping for it.
So this is both the biggest positive and biggest negative depending on which way the people involved go. Right now the most powerful leaders on each side are handling this perfectly. It is the smaller companies and providers that are jockeying for position that are hurting themselves and a $2B industry.
From my vantage point, I see my life’s work in jeopardy when people do not respect each other enough to play by the rules and believe that both old and new NEED to help each other.
Lincoln said: “A house divided against itself can never stand.”
Rick Wolf is a leader in the fantasy sports industry. He is a founding Board Member and one of only fifteen FSTA Hall of Famers including Bill James, Ron Shandler, Glenn Colton and Matthew Berry. He is the Co-Host of Colton & The Wolfman every week on Sirius XM Fantasy Sports Radio. With college friend, Glenn Colton, he has won five Expert baseball titles and four Expert football titles. He currently runs the sports consultancy Full Moon Sports, which has assisted many sports companies including Topps, USA Today and FOX.

NFL and Sportradar Unite on Exclusive Stats Deal

By Frank Scandale @Fscandale @TheDailyPayoff

The National Football League and Sportradar US, a major statistics data supplier, announced today a multi-year agreement to make the global company the league’s exclusive distributor of statistics to digital outlets beginning with the 2015 NFL Season.

Sportradar US will become the NFL’s exclusive distributor for official real-time scores, player statistics and play-by-play data (Game Statistics and Information System/ “GSIS”) as well as the NFL’s proprietary Next Gen Stats.

Harmuth_6961

Ulrich Harmuth, President of Sportradar US said the deal underscores the company’s commitment to securing its spot as the top outfit in the U.S. sports data market.

“We are thrilled to partner with the NFL in developing a completely new data category that will boost the fan experience as well as improve how the NFL and its partners interact with their fans,” he said.

He explained that since entering the US market about 18 months ago when it took over SportsData LLC in Minneapolis, MN, the company has been convinced about the sports data market being a great opportunity to do “all kinds of sports data” in the future. “We believe the US sports market is the largest in the world.”
He said the company upgraded the Minneapolis headquarters and the infrastructure there as an indication of its long term commitment to its venture in the US.

He said the NHL, for example, would be one of “six or seven interesting leagues” in the US that Sportradar would be interested in pursuing down the road.

“We managed to grow quickly in the past and there will be a need to continue to grow,” Harmuth said. “The NFL is a major step for us. We are also the official statistics provider for NASCAR, so if there is an opportunity to go for further licensing deals, we know we have a compelling product…and are completely willing to invest further resources.”

Vishal Shah, VP of Media Strategy and Business Development at the NFL , explained the reason for the deal.

“Statistics are core to the fan experience, and being able to broadly deliver new, differentiated viewpoints is compelling. Next gen stats is an exciting initiative that adds tremendous breadth and depth to our sport,” he said. “The ability to partner with Sportradar US, with its focus on technology and high quality data distribution, enables the NFL bring these great experiences to the rapidly growing sports data market and our fans.”

This partnership will allow the NFL to distribute statistical data in new and innovative ways, across apps, social media platforms, and connected devices.

Next Gen Stats, the initiative first introduced in the 2014 NFL season, consists of real-time, location-based data such as speed, acceleration and distance traveled, for all players, in all games.

This unique information, alongside GSIS, will be distributed by Sportradar US to give fans a closer look into the game, and allow them to experience it in ways never seen before. Insights from Next Gen Stats also will be available for fans in-stadium, at home, and everywhere else that NFL content is consumed.

While the company said the deal will not impact the US gambling market, it will further the development of Fantasy Football.

“Fantasy Football players are constantly looking for that extra bit of insight or information that will give them the edge against their competition,” Harmuth stated. “The NFL’s Next Gen Stats will provide a whole new level of insight into player performance, strengths and tendencies. For example, data about a player’s formation location, routes and speed over time as well as his performance or record against specific players or teams, will provide fantasy sports players with unique information as they consider future player performance and their selections.”

Both the NFL and Sportsradar have said that statistics will not be shared with gambling houses in the US. Harmuth explained the company has two verticals of business – one is for media and business, the other is to serve gambling customers. In Europe, they are completely separated, he said. “In the US we only offer one vertical – the media – and no data to gambling customers.”
Asked how this might change if the regulations were loosened on sports betting in the US, Harmuth replied: “We know what we have today, so we are fully focused on media sales, and not worrying about what might happen three to five years away.”

Harmuth said his company and the NFL agreed to not disclose financial details of the deal. However, Sports Business Daily reported via industry sources that the Sportradar would pay the NFL $5 million per year in exchange for an equity stake in the company. https://www.sportsbusinessdaily.com/Journal/Issues/2015/04/20/Leagues-and-Governing-Bodies/NFL-sportradar.aspx

Sportradar US is the U.S. subsidiary of Sportradar AG, which supplies more than 800 businesses in over 80 countries with data. Headquartered in Switzerland, Sportradar has offices in more than 30 locations around the world.

Sportradar US, which until recently operated as SportsData LLC and was acquired by Sportradar AG in 2013, has been said to be the fastest-growing sports data provider in the U.S. In addition to providing official league feeds from the NFL and NASCAR, the company said it now covers more than 20,000 live events across professional football, baseball, basketball, hockey and golf events, plus collegiate football and basketball. The company provides data solutions for leading global companies such as Google, Turner Sports, IBM, Facebook and Twitter. Sportradar US is headquartered in Minneapolis and recently opened a new 20,000 square foot state-of-the-art office dedicated to collecting, processing and monitoring data as well as client support, IT and development teams.

iGaming North America 2015 Day Three Recap

The third day of iGaming North America was a successful one, especially considering it was the last day of a three day stretch in Las Vegas.  Two good moves by the organizers were the addition of the iGaming North America Awards during lunch and holding a legalization of sports betting panel at the tail end of the event, both keeping a decent number of attendees on site (and out of the casinos).

When reflecting on the three days here in Vegas, what’s clear is Fantasy Sports is an incredibly hot topic in our industry today.  Jason Robins had an entourage of people following him after his session on Day 1 and today’s Fantasy Sports session enjoyed a full house despite its early hour.

The panel, “Expectations for the Maturing Fantasy Sports Industry” featured Paul Charchian, President of the Fantasy Sports Trade Association (FSTA), a professional who has been involved in the fantasy sports industry for twenty years.

Charchian confirmed the explosive growth in Fantasy has a lot to do with the birth of Daily Fantasy Sports (DFS) thanks to industry giants Draft Kings and FanDuel.  “ESPN’s most hit area of the site is fantasy football”, pointed out Charchian.

ARENA FOOTBALL TEAM JOINS VEGAS BETTING HOUSE

By Joe Favorito @JoeFav @TheDailyPayoff

As a league on the comeback, Arena Football has to find ways to cut through the clutter to get some exposure away from their games and into the general conversation.

It’s most recent effort has it diving right one of the hottest topics in American sport off the field these days; legalized gambling.

While pay fantasy platforms like Fan Duel and Draft Kings have made big noise and big numbers the past few weeks with partnerships and new investors, the AFL and their expansion Las Vegas Outlaws have gone one step further.

The league and the team have taken advantage of the legal sports book in Nevada (the only state where sports betting is legal these days) to form a bold partnership with betting house William Hill USA.

The partnership includes live betting and active point spreads on all of the Outlaws homes games at The Thomas and Mack Center, making the AFL club the first, and only American sports team thus far to be able to take on and activate a betting partnership not tied to pay fantasy, or in the case of the NHL New Jersey Devils and NBA Philadelphia 76ers online poker.

While the AFL is not the NFL and the dollars both wagered and the risk involved is not that high, the partnership presents an interesting potential glimpse into the future of sport in America, something that places like the UK have accepted and profited from for years.

William Hill logos are widespread at the Outlaw games, both on uniforms and on the field, and the company has a kiosk on the concourse where customers can sign up for its mobile betting client, and place wagers from the stands. The risk for William Hill US is probably low given the volume expected on AFL games, but the upside on seeing how this new opportunity engages fans who are not used to in-game wagering is very much apparent, and could set a unique precedent for sports, at least in Nevada, going forward.

With the NHL looking hard at expansion into the state, it will be interesting to see if rules relax with regard to sports books on the four major leagues when games are played in Nevada. Previously when teams like the Los Angeles Lakers played limited regular season games in Las Vegas, the lines on those games were suspended. However with a growing appetite for legal gaming in addition to pay fantasy, the AFL test may change things, with the NHL gaining a first crack at seeing how mobile legal gambling could work.

Of course the arena, and the hometown hockey team, is still in the distance, but rest assured every league will be watching how engaged and how profitable the AFL’s limited but grand experiment will be this season and going forward. If it works, the league which once tried to be a perfect spring feeder league to the NFL could become even more valuable with new business off the field than it ever has been in cultivating talent on the field.

The business of gambling gets to score again.

8 Legal Challenges Of Major League Baseball’s New ‘Daily Fantasy Sports’ Partnership With DraftKings

8 Legal Challenges Of Major League Baseball’s New ‘Daily Fantasy Sports’ Partnership With DraftKings

Forbes: By Mark Edelman

Last Friday, Major League Baseball announced that it has become an investor in the “daily fantasy sports” website DraftKings — ending a nearly a 95 year period during which Major League Baseball opposed anything even roughly associated with sports gambling. It is now rumored by the Wall Street Journal that Walt Disney DIS +0.17% may join Major League Baseball as an equity investor in DraftKings as early as this Friday.

For Major League Baseball, its newest investment in “daily fantasy sports” provides a desirable opportunity to potentially profit from a rapidly emerging marketplace. Nevertheless, this investment is also fraught with eight legal challenges that Major League Baseball should address upon taking this new equity stake:

1. Does DraftKings operate in any states where all of its contests are illegal? Currently, DraftKings disallows participants from entering its games in five states where it perceives the gambling law risks as most elevated: Arizona, Louisiana, Iowa, Montana, and Washington. However, there are other states where operating “daily fantasy sports” seems to be a very high risk activity. For example, statutory law in the State of Tennessee seems to disallow contests that involve any chance whatsoever. The same may be true under Arkansas common law. Nevertheless, DraftKings (much like its rival, FanDuel) still operates in both of these states.

2. Does DraftKings do enough to block users in these impermissible states? The publicly traded sportsbook, the William Hill Co. recognizes that it is so critical that those based on U.S. soil not access their website that they use Internet Protocol Tracking Technology to prevent those based in America from even getting to the website’s front page. To ensure legal compliance in the states that clearly disallow play-for-cash fantasy sports, DraftKings may wish to implement Internet Protocol Tracking Technology to block the entirety of its website from users – thus preventing any mistake or confusion about legality of accepting money from such states.

3. Does DraftKings operate any contests that are illegal in their entirety? DraftKings currently offers ”daily fantasy sports” contests in individual sports such as golf even though these contests are based in their entirety on player performance within a single tournament. The decision to offer daily fantasy golf seems imprudent because even the Unlawful Internet Gambling Enforcement Act’s narrow carve-out for “fantasy or simulation sports” requires that the contest results emerge from accumulated player statistics in “multiple real-world sporting or other events.” A single golf tournament reasonably may not constitute a multiple events under this definition, and thus DraftKings’s version of fantasy golf should face a heightened risk of criminal challenge. (Note: as I recently told Golf.com, this problem could easily be fixed by combining two golf tournaments; however, DraftKings has simply failed to do this).

 

Full credit to Forbes.com – seen here: http://www.forbes.com/sites/marcedelman/2015/04/08/8-legal-challenges-of-major-league-baseballs-new-daily-fantasy-sports-partnership/