Category Archives: Fantasy Sports

Danske Spil acquires 60% stake in Swush; FanDuel expands its workforce in Glasgow

Denmark’s former betting monopoly Danske Spil has acquired a 60% stake in Scandinavian fantasy sports operator Swush.

The acquisition will help Danske Spil to bolster its digital product offering, as it plans to scale up its operations for the licensed Danish online gambling market.

Swush provides a number of seasonal fantasy sports games for some of the largest media groups in Europe such as Eurosport and ESPN. The fantasy sports product has a strong presence in the Danish market, with national broadcasters and media owners TV Sport, MTG Viasat and Ekstra Bladet as partners.

Last year, Swush had 200,000 users registered to its seasonal games in Denmark, while it also held market leading positions in Sweden and Norway.

Vegas Everyone? NBA Team Could Join NHL in Desert

By Joe Favorito @JoeFav @TheDailyPayoff

Later this week the basketball world will converge on Las Vegas for the annual NBA Simmer League, the annual showcase for unsigned and recently drafted talent.

Hundreds of media, agents and players will descend for two weeks of competition.

However according to a report in the Milwaukee Business Journal this week, The Summer League might not be the only time the NBA goes into the desert before too long. With a new arena on the horizon and millions of dollars on the line, the Milwaukee Bucks have mentioned getting into the Vegas mix should the state of Wisconsin continue to drag its heels on a new arena for the team.

Speaking to state lawmakers on Monday, Bucks president Peter Feigin had a pretty ominous warning should the team not get the desired arena it has been seeking for some time now:

Per the report: “Milwaukee Bucks president Peter Feigin told Wisconsin lawmakers Monday that time was of the essence in approving $250 million in public funding for the proposed arena in downtown Milwaukee or the NBA will move the team to another city. At an informational hearing held by the state Legislature’s Joint Finance Committee, Feigin said the Bucks owners’ purchase agreement for the team includes a provision that construction of a new arena start in 2015. If that does not occur, he said the NBA will buy back the team for a $25 million profit and move them to “Las Vegas or Seattle.”

The Bucks, suddenly one of the NBA’s hottest teams, have been searching for new solutions for the aging BMO Harris Bradley Center for some time, and Feigin, a former Knicks executive, said the team needed to start construction by October or November to avoid the NBA starting a process of seeking buyers for the team. The team’s lease at the BMO Harris Bradley Center expires in 2017.

The demands come at an interesting time for Las Vegas. With talk constant that the city will either receive an NHL expansion franchise or have a team like the Phoenix Coyotes relocate, Vegas as a professional sports destination may actually becoming more real than just the home of the AFL Las Vegas Outlaws before long.

In the mix for teams is how legal sports wagering will be handled in the state. In past years when games were played in the state, the traditional sports books suspended lines on those games. The Los Angeles Lakers and Utah Jazz each played home games at the Thomas and Mack Center for years, and when they did, no line was posted as part of the agreement. Similarly, lines for home University of Nevada Las Vegas basketball and football games have been pulled over the years when the teams were in state.

However this past year the AFL Outlaws not only had lines on their games, but they welcomed live online gambling into the mix as part of their fan experience.

With pay fantasy expanding and both the NHL and the NBA supporting both pay fantasy and the eventual nationwide legalization of sports betting, having franchises in Las Vegas could provide even bigger revenue stream as the process continues to evolve. Those franchises could become models for how legal sports betting could work once Federal law changes.

“Control of all forms of content, whether it is broadcast, digital or actual games is more vital to success than ever before, and with Las Vegas it seems more and more like the distribution of content, combined with a new state of the art building is becoming more than attractive to teams in at least two leagues,” said Dan Cohen, SVP, Americas at MP & Silva, one of the world’s leading sports media companies. “It used to be Las Vegas was a city that had all kinds of negative baggage for sports, now because of the changing landscape in the digital sports and fantasy space, it has become not just attractive but a hub of real conversation when expansion or relocation comes up. Nevada is no longer some fairy tale for professional sports, it is becoming a reality.”

Whether that reality happens in a year or five years remains to be seen, but one thing is for sure; “Sin City” appears to be an open and willing partner for professional sports teams, and now once one comes, others may follow.

Mr. Million Dollar Fantasy Golf Winner

By @TheDailyPayoff

Million dollar Draft Kings US Open fantasy golf winner Carl Bassewitz (right) and his son, Beau, get a priceless experience, taking batting practice at Fenway Park in Boston a day after he visited the DK headquarters offices to accept ceremonial check and his winnings. Bassewitz won the $1M “Millionaire Maker” prize with a single $20 entry when Dustin Johnson three-putted the final hole at recent U.S. Open at Chambers Bay. He had picked Jordan Spieth to win over Johnson.

World Cup Fantasy Could Open Door to Olympic Fantasy

By Joe Favorito @Joefav @TheDailyPayoff

The success and proof of concept that Mondogoal achieved these past two weeks with Women’s World Cup showed that select niche mega-events can draw both dollars and attention.

DraftKings and other smaller companies have been looking to golf as a new growing platform because it is simple, mobile and can be played in and around live event. Their their million dollar winner for the US Open demonstrated a growing market not just for golfers but for millennials who may never play a four-hour round on a Saturday.

As we move closer to the one year out celebration that countries all over the world will put on for Rio, it’s interesting to start thinking about the permutations of Olympic fantasy and how it would work. New sports coming into Rio, golf especially, can easily be adapted to a pay fantasy model, and team sports like basketball are ripe for an engagement game.

Parlay the fact that the International Olympic Committee earlier this year approved legal sports books in Nevada to carry betting lines for next summer’s games, and that means that a deeper analytic dive will be made by betting houses around the world to find ways to create interest in sports like swimming and other individual sports as well. Fantasy gymnastics, anyone?

Maybe not gymnastics, as individual sports outside the mainstream may be too difficult to create an audience for. However for key team sports, and add in a growing sport like rugby which will be in the games for the first time and has a strong tie to traditional gambling play, and other mainstream team sports in the Games, and you have interesting opportunities for pay fantasy alongside traditional gambling being done legally from Las Vegas.

The interest in fantasy and gambling will not be lost on rights holder NBC as well. The recent numbers by the Fantasy Sports Trade Association show that the more fantasy play involved with sport, the more the viewer is engaged in the broadcast and all pieces that go along with engagement. Since the Olympics traditionally skew viewers that are older and more female, the goal is to find a younger and more engaged audience, and an investment in fantasy play may be smart, at least for American audience engagement for 2016.

“There is no doubt that pay fantasy is growing in engagement, the question is still how do you make it simple and appealing to a wide audience of casual fans, and there is no bigger event other than the Super Bowl that gathers casual fans like the Olympics,” said Chris Lencheski, longtime marketer and currently running the consulting business Phoenicia. “The amount of data available for the Olympics so vast, the broadcasters want more engagement, and the marketing dollars are there. While it might not be a huge playing audience for 2016, it can set the table for the future just like this Women’s World Cup game has, so it will be interesting to see who steps up to engage.”

While Yahoo has said they will make a big play in the pay fantasy space this fall, most other media companies have gone the partner route, looking for revenue share and advertising dollars from the bigger pay fantasy players thus far. Could that change if the marketplace shows an interest going forward? NBC has done a great job in creative engagement around its properties, and added engagement for the Olympics in the form of pay fantasy would be an intriguing look.

If it worked for WWC, maybe it can work for the Olympics as well.

Pay Fantasy Scores With Women’s World Cup

Pay Fantasy Scores With Women’s World Cup

The past few days there has been a great deal of speculation about what the success of the U.S. Women’s National Team can mean to the business side of women’s sports. More recognition in the mainstream can bring its perks, and although the stars of this women’s program are probably the most leveraged of any team of women’s athletes in terms of brand exposure, there is still a huge opportunity void that still can be exploited.

What about fantasy sports? Last week at the Fantasy Sports Trade Association Summer Convention, research showed that engagement by women in daily fantasy was the fastest growing demo, an area which is still small by comparison to men but it is growing by the day. And although Fan Duel CEO Nigel Eccles said recently at the Cynopsis Sports Conference that their company’s growth area for the next five years was going to be primarily focused on the NBA and the NFL, DraftKings and some other smaller companies have moved to find other niches of success in sports like fantasy golf and NASCAR and even soccer.

The company which has made the biggest investment in daily fantasy soccer is Mondogoal. Based in Isle of Man and Boston, CEO Shergul Arshad has built their company working with some of the bigger soccer clubs in the world this past year, and recently cast the dice by launching the first, and only, daily fantasy game around a women’s team sport, tied to the ongoing FIFA Women’s World Cup.

Has the game been a success? We checked in with Mondogoal to see what the engagement has been like as we head toward this weekend’s final in Vancouver.

While they would not give hard numbers, Mondogoal reported very strong growth, which has included thus far:

Opening week of the Women’s World Cup saw 12% more activity (12% more entries from users) than the largest weekend of activity for the English Premier League.

In terms of new engaged users, thousands have become first time users of Mondogoal as a result of the WWC and Co-Ed contests.

Number of Female users has tripled over the amount of engaged users for pay fantasy play for clubs this past winter like Manchester City, AS Roma and FC Barcelona.

Despite the time difference (many games kicking off late at night/after midnight) they have seen thousands of entries in the United Kingdom as well, in part to the England National Team’s deep run into the tournament

More players becoming household names/well known. Early in the tournament Abby Wambach/Alex Morgan were among the most selected US fantasy players on Mondogoal, based on name recognition alone. Carli Lloyd, Julie Johnston and Megan Rapinoe have since passed them based on fans watching the games and recognition of their play during the tournament.

In addition, Mondogoal went co-ed and is expecting a similar rise in their $10,000 Summer Showdown contest again as well. It will feature the following matches, with 200 Users will enter and select top male players (Lionel Messi, Sergio Aguero, Alexis Sanchez) alongside top Female Players and compete for $10,000 in prizes.

Chile v. Argentina (Men’s Copa America Final)
Germany v. (loser of Japan/England) – WWC Third Place Game
USA v. (winner of Japan/England) – WWC Final

What does this activity mean? Will we be seeing more WNBA, Olympic gymnastics and WTA and LPGA Fantasy going forward? Hard to say given the uniqueness of WWC, but safe to say that daily fantasy for select events, men or women, continues to have staying power and consumer engagement opportunities that are on the rise, and that’s good news for everyone, from fans to brands to broadcasters to athletes. The more engagement, the bigger the pie, regardless of gender.

Mobile Making Fantasy A Reality For More Players

Mobile Making Fantasy A Reality For More Players

At last week’s Fantasy Sports Trade Association Summer Conference in New York, a crowd of several hundred, most on laptops, listened intently to sports and fantasy business leaders talk about the upward growth and engagement of consumers in and around all things fantasy, especially the fascination with daily pay fantasy, a part of the field dominated by the two biggest players, Fan Duel and DraftKings.

The data, provided by Jason Allsopp of the research firm Ipsos, was amazingly positive news for those in the room; More people are playing fantasy than ever before, with 51.6 million people age 12 and over in the United States engaged, 20 percent of the population, up from 14 percent in 2014.

More importantly perhaps, women are playing fantasy sports in much larger numbers, with 33 percent of players now female, a big jump in the last three years. The biggest jump overall is in DFS play, where seventeen percent of all fantasy players play DFS exclusively, up from 8 percent in 2013, with spending up to $257 annually for a DFS player who was only spending $15 in 2012.

However one of the most important factors that came out of the Ipsos study was mobile engagement. Fantasy players are becoming increasingly mobile with just 44 percent of players using a desktop or laptop computer is their primary device for fantasy sports. That was down from 68 percent in 2013. The combination of an avid mobile user and a more engaged younger audience is not really surprising given where consumers are trending these days, and it’s even less surprising when you look at a global audience that could engage in fantasy, but what is surprising is the lack of mobile adoption by fantasy businesses at this stage.

The model of DFS as it stands now for the larger players are based around salary cap games. While apps do provide a mobile option, setting full lineups on a smaller device given the amount of research needed is both tricky and cumbersome. Since retention and acquisition for the bigger sites like FanDuel and Draft Kings is so vital for growth (reportedly neither are profitable yet despite the millions invested in the brands by everyone from venture capital to the NBA and MLB), a tough mobile option can be a turn-off for the younger mobile savvy first adopter. Both Fan Duel and DraftKings have been bullish in tackling the mobile experience and are making strides with their apps so that they are as user friendly as possible, but does more need to be done?

If mobile is key, can companies pivot to simpler, non-salary cap mobile first game that are springing up by the dozens? And if simpler and mobile is where the DFS industry needs to go, can there be a micro-option built in that will bring large revenue and more players for simpler games?

“We have seen that the best mobile experiences; Instagram, SnapChat, are simple to engage with and easy to navigate for everyone,” said Tom Richardson, Columbia University professor, veteran sports marketer and one of the most engaged professionals in sports in the mobile field. “While companies like FanDuel and Draft Kings are doing a good job with their experience for consumers, the bottom line is consumers will always expect not just a good, but an easy and simple mobile experience and fantasy businesses need to think that way first to grow, especially new businesses trying to find a niche in the space. Without a prime mobile experience first, you will have big challenges acquiring and retaining consumers no matter how much money you raise or how robust your offering is.”

We have seen freemium games outside of sports; Angry Birds, Candy Crush, draw big numbers of engagement because of simplicity. That model lasts for shorter periods of times, and in the case of Rovio and Angry Birds, has led to issues when the company tried a new level of engagement.

With a host of new players coming into the marketplace, from big media companies like Yahoo to many smaller players looking for not just a piece of the current marketshare but for a way to actually increase the size of the market by engaging milennials, women and casual sports consumers, is simpler and mobile the next step?

It would seem like the smartest bet.

DraftKings’ UK Gambling License Bid Stirs Debate

 

By Frank Scandale @FScandale @TheDailyPayoff

Daily Fantasy player Draft Kings’ plan to obtain a gambling license in the UK is seen as a shrewd move to gain a foothold in the international market.
It is also viewed as a risky move to catch its larger rival that could tarnish its image as a fantasy player by plunging into the gambling sector, and upset its NFL and network backers.
Either way, the move is fueling speculation of what this means for daily fantasy sports, who some see will be played by 100 million people within three years.

Adam Krejcik, a partner in Eilers Research that studies the digital and interactive gaming industry, suggests why neither daily fantasy sports player has targeted the UK at this point.
“They are focusing their money and resources on the US,” he says, adding, “Once you enter into the international market, you have to file for a gambling license, which might seem hypocritical since you have maintained DFS is not gambling.”

He said FanDuel probably saw that issue, but DraftKings “feels the time is right to enter this market and doesn’t feel like this should be an issue.”
Eisler also noted the risks involved go beyond its image as a non-gambling site.
“The market itself has not been proven yet either. You have to build a team and an office, get a license and then market and acquire customers over there,” Eisler said.

Yet, Draft Kings did not make this move without consulting with its strategic US investors, including networks and pro teams.
“I would not have expected them to make this move without having discussion with shareholders who are strategically aligned,” he said. “And then at the end of the day they must have felt comfortable.”

DraftKings did not respond to requests for comment for this story.

As for the NFL, which has approved one-year partnerships with league approval, the league remains on the sidelines, he says, but are not letting its teams invest directly into DFS companies. For New England Patriots owner Robert Kraft, for instance, has an investment into DK through Kraft Sports Group and not subject to the same rules as teams.
“For other investors, generally speaking, there is a shift. The sports leagues themselves are becoming more open-minded when it comes to sports and gambling.”

Rick Wolf, president of Fantasy Alarm and co-founder of Fantasy Sports Trade Association (FSTA), sees the move as a smart diversification of Draft Kings core business.
“One of the key misnomers is that fantasy sports players are gamblers,” he said. “In research from the FSTA that has 56.8M people in North America playing, the number who wager regularly on sports is very small. It is not a cross over play, but a new business and really, why not?”
Wolf also sees the NFL and MLB, for instance, supporting fantasy sports in general, and will react to DK’s move depending on their own respective agreements and their own views, not to mention the views of the public.

“The public is smart and knows that fantasy sports is not gambling so I don’t think this is an issue for them,” Wolf said. “…and the cross over is small. To me it is just a diversification into a completely different business vertical with similar software needs.”

Another supporter of the diversification move is Darren Heitner, a sports and entertainment attorney based in Miami, who said the move makes perfect sense as it positions the company well should the United States eventually relax its overall stance on gambling on the federal level.
“It (makes sense) for multiple reasons,” Heitner said. “The chief justification being that Draft Kings can test out a proprietary gambling platform that is ready to be implemented in the United States should the federal law preventing widespread gambling (PASPA) be amended or revoked. Furthermore, it will allow for an extension of the brand on a worldwide scale, which could open doors for the proliferation of its fantasy-related offerings. Additionally, it may believe that there is market share to grab — making sense from the most basic premise that it has a platform that could generate additional revenue at a reasonable cost.”

Regardless of all the factors surrounding DFS, Heitner thinks most decisions will be based on business bottom line outcomes. While the NFL has its concerns about gambling and pro sports, he thinks the league would be taking a contradictory position if it were to chastise Draft Kings for implementing a gambling operation overseas, as it seeks to expand its product into the UK.
He said the NFL continues to expand the number of games played in the UK and “would love to have a team based there.”

“It is well aware of the amount of gambling that occurs within the UK orders,” Heitner said. “The leagues may claim that gambling runs contrary to maintaining the integrity of the game, but the bottom line is the bottom line.”

Same for investors. They will look at the strengths and weaknesses of entering such an industry in a particular market and then decide what opportunities and threats exist, Heitner said.

As for television partners , Heitner doesn’t see a problem.
“ESPN has to be quite thankful that the World Series of Poker became such a hot commodity,” he said. “Again, it should be about what this expansion does for the bottom line.
“If the operation is legal where the platform is offered, then the conversation over perception should be a nonstarter. I go back to the NFL harping on the fact that the potential of gamblijng threatens the integrity of the game. Yet, the NFL expands the number of games played in London year-over-year and would love to have a team based in the UK.”

ESPN and DraftKings recently inked a partnership deal worth a reported $250 million, according to The Boston Globe and other media sources. ( http://www.betaboston.com/news/2015/06/24/draftkings-wins-big-espn-ad-deal-but-no-word-on-investment-rumors/)

For a unique perspective on fantasy sports and the UK, Mondogoal’s founder and CEO talked about his early success there.

Shegul Arshad said his operation, which focuses on online fantasy soccer, entered the UK last summer for the World Cup with a soft launch. He has a unique perspective as the DFS landscape continues to evolve.
Incorporated in the Isle of Man with a US headquarters in Boston, Mondogoal offers cash and non-cash games for players, depending on where the individual is located and what the regional gambling rules are.

“It’s certainly a strange move, if you ask me,” he says of the Draft Kings move. “For a US-based company to go over there, it’s a strange move given the fact so many states and jurisdictions are being looked at.”

However, Arshad is optimistic because if Draft Kings is successful overseas, it will help the industry grow overall.
“If the pie grows, we are all taking slices of the pie,” he said.
He wishes them well because now if someone searches the report they heard that Draft Kings is coming to the UK, it will help drive traffic to all fantasy sports sites.
“Any new entrant and credible dollars that go into the market place, will help educate about daily fantasy, and at the end of the day, if awareness ratchets up, there will be multiple winners across the board.”

Fantasy and Reality: Nando DiFino Explains

By Joe Favorito @JoeFav @TheDailyPayoff

With the Fantasy Sports Trade Association Summer Convention being held in New York earlier this week, Nando DiFino, Executive Producer and Manager of Content for Anthem Media Group and their platforms on Fantasy Sports Network and Sirius XM, expounded on his view of the landscape these days.

One of the eye-popping stats he offered: 100 million people will be playing daily fantasy sports in three years.

A young veteran of the space, DiFino has helped create and manage Fantasy News and Business at CBS Interactive, AOL, the Wall Street Journal and other places.
We talked to him about his career, and the growing fantasy business today.

How did you get your start in sports media?

It was the SportsTicker — probably one of the greatest rooms I’ve ever worked in. A bunch of guys loving sports, scoring games, inputting them into computers that would blast the results out to the places the Ticker served. I worked there when I was in grad school, mainly nights and weekends. I loved that job. I loved everyone who worked there. That job was the main part of my resume that got me working for Sam Walker on Fantasyland. From there, it all snowballed.

The fantasy sports business is growing, how big can it be in the next few years?

Five years ago, fantasy players were still carrying a nerdy stigma. Now, I go to meetings, and everyone has a brother who plays, or a son. My wife has two leagues. Fantasy football is going to lead the charge because it’s so prevalent in society and pop culture, and daily fantasy’s wide reach has opened eyes in places regular fantasy had failed to penetrate. This will be huge. 100 million people will be playing by 2018.

Where and how can we see your work on The Fantasy Sports Network?

We are on several cable outlets (Cablevision, Bell Fibe, several more), we’re on XBOXes now. Roku, Amazon Fire, you can stream us on FNTSY.com. We’re growing at a rate quicker than we had anticipated.

Some still don’t understand the difference between gambling and pay fantasy, is there one?

There is. It’s a blurry line sometimes, and it’s easy to just point and say “fantasy is gambling,” but fantasy really does require a skill. Put your time in, research it, and you can do really well. The best gamblers in the world may win 55 percent of the time. The best fantasy players in the world can be up in the 70s or 80s.

What professionals helped shape your career?

Michael Epstein, a producer at ESPN, put me on TV and taught me to just be normal. He also taught me to always hold a pen when I’m talking so my hands aren’t doing weird things. Matthew Berry (ESPN) is a tremendous mentor; he doesn’t like to be inside the box and offers really great, selfless advice whenever I need it. Sam Walker (WSJ) pushed me to write and write, even if it wasn’t in a paper or online — do it just to stay sharp. Adam Thompson (WSJ) taught me to be more concise with my words and not be afraid to chop up a run-on sentence. Lou Maione, my current boss, is a dreamer, but in a good way. He’ll have these ideas and do whatever he can to make them a reality. I’ve never seen him defeated by something he really wants to do. And Wayne Loewe at CourtTV taught me how to be a great boss; specifically how to treat people who worked with and for you with respect and understanding that they will get the job done. Everyone who has a staff should search out and take lessons from Wayne Loewe.

Are there members of the media whose careers you followed growing up, and if so, who and why?

Steve Rushin’s SI columns were tremendous. His writing is just so sly and wonderful. Bill Watterson, Gary Larson, and Berkely Breathed could really craft these engaging stories and then draw corresponding photos that deepened them to a degree I never could. I think I own every Calvin and Hobbes, Bloom County, and Far Side book ever made.
I think anyone my age in sports who denied Bill Simmons had anything to do with influencing them is a liar. He is fearless in his pop culture parallels and style. Prime Time Adam Schein was a big radio voice on Syracuse radio growing up. I see him at Sirius once in a while and remind him of that. Jim Henson was huge for me. Everything he did was infused with this multi-layered creative spirit and humor. But you could tell he did his homework, studied things, honed his craft. I love Penn and Teller and the Amazing Johnathan. They catch audiences off guard. I love doing that.

What advice do you give young people trying to get into the business of sports?

Be ready for this to be your part-time job (or a miserable full-time one) for at least five years. Everyone wants to be in sports; the problem in not getting discovered may not be that people are better than you, but it takes a while to turn over every rock if there are 10,000 of them lined up in front of and around you.
Inside the craft, I’d say always remember that the guy you’re ripping to shreds in a column or on TV could have been your college roommate, or your childhood friend. He’s just a dude who is really good at his job, and you’re probably, deep down, just being jealous. Everyone can be negative. It actually takes some creativity and research to find the positive in most situations.

FanDuel Grows NBA Platform

By @TheDailyPayoff

While DraftKings relationship with MLB and their enhancements in golf have given them great buzz this early summer, FanDuel continues its focus on the winter and its two core sports, says its chief executive.
CEO Nigel Eccles said football and basketball remain its focus, taking the opportunity with the NBA Draft Thursday to announced an expansion of its NBA partnerships for the fall at Tuesday’s FSTA Conference in New York,

FanDuel locked in exclusive multi-year partnerships with 13 league franchises – the Atlanta Hawks, Brooklyn Nets, Charlotte Hornets, Chicago Bulls, Cleveland Cavaliers, Dallas Mavericks, Detroit Pistons, Indiana Pacers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Orlando Magic and Utah Jazz.
The deal hands FanDuel marketing assets from in-arena digital signage and in-game promotions to digital, TV and radio advertising, among other branding initiatives. FanDuel will also collaborate with the individual organizations to continue to bring unique experiences to fans, including exclusive player meet-and-greets and VIP road trips to events.
“Partnering with these NBA organizations has been an incredible asset to FanDuel’s growth and business. NBA fans comprise a younger, mobile-centric demographic, looking for new ways to engage with their favorite sport, teams and athletes throughout the duration of the season, which is exactly what they get on FanDuel,” said Nigel Eccles, CEO and co-founder, in a release. “We’re going to keep partnering with franchises that recognize FanDuel’s ability to keep fans in their seat with their eyes glued to every game because they have a player on their fantasy team that night.”

During the conference the value of pay fantasy was again backed up by NBA Deputy Commissioner Mark Tatum in an interview with Eric Fisher of The Sports Business Journal.
“We have made our stance clear that we do not see pay fantasy as gambling, and it is a prime way for us to engage deeper with our fans,” Tatum said. “Our fans and our teams have made it clear that this is a growing engagement platform and we are excited about continuing to work to enhance our relationship.”

While not exclusive with the NBA, FanDuel has made it clear that their key business objectives and their growth strategy is revolving around the activation and engagement with the NBA, as well as their recently announced partnerships with a majority of the NFL teams. The NFL remains the least engaged league in an official capacity in pay fantasy, with MLB having taken up an equity position with DraftKings and Fan Duel with the NBA. Several NBA teams, including the New York Knicks, have chosen to partner with DraftKings as part of a wider cross-promotional strategy, but Eccles remains bullish on the overall basketball relationship as the core of Fan Duel’s platform in 2015 and beyond.

TDP EXCLUSIVE: Three Putt at US Open Brings Fantasy Fortune to First Time Draft Kings Player

THREE PUTT AT US OPEN BRINGS FANTASY FORTUNE to FIRST TIME DRAFT KINGS PLAYER

By Terry Lyons, Contributing Columnist, The Daily Payoff
@terrylyons

A Father’s Day summer evening turned into night and golf fans around the world surely shook their heads in disbelief when the 17th and 18th holes at Chambers Bay brought about the strangest of finishes to the 115th United States Open golf championship. The four-day tournament was near its conclusion and the prime time US television audience stayed glued to their High-Def TV sets which delivered the grimaces of PGA Tour pros Jordan Spieth and Dustin Johnson into the living rooms of many casual sports fans, some longing for a Game 7 of the completed NBA or NHL seasons but left with nothing else to watch but the major golf championship.

What those primetime Fox Sports viewers couldn’t see or feel as the sun set near the Puget Sound were the heart palpitations pulsing through Carl Bassewitz, a veteran sports industry good-guy who was playing Draft Kings PGA Millionaire-maker daily fantasy game for the very first time. Bassewitz, watching on his TV, a half continent away from the action, double and triple-checked the scores of his six player fantasy team that he selected. His lineup featured Spieth but not Johnson, and also included, Louis Oosthuizen (T-2), Kevin Kisner (T-12), Tony Finau and Patrick Reed (T-14) and Jason Dufner (T-18).

That “fantasy team” combination delivered Bassewitz to the dream world of all fantasy sports players, as he turned a single $20 entry fee into a cool $1 Million dollar prize. In doing so, Bassewitz outlasted 143,000 entrants who ponied-up the $20 fee with hopes of a $1 million when they chose their lineups for six golfers, staying under a $50,000 cap, as per usual in the Draft Kings golf game. One such player, the second place finisher who is only known as “Headchopper” who is known as a professional in the fantasy sports world, needed Johnson to finish ahead of Spieth. But Johnson’s improbable three-putt on the 72nd hole of the tournament gave the U.S. Open title and its $1.8 million first place purse to Spieth, while delivering a cool mil to Bassewitz and a not-so-paltry $877,144 runner-up prize to both Johnson and Oosthuizen.

When reality set in, Bassewitz realized he’d made more money than the U.S. Open runner-ups!

“I had heard a lot about the Daily Fantasy sports craze and figured I’d give it a try,” said Bassewitz to The Daily Payoff in an exclusive interview, his first since being officially notified by Draft Kings that he was the lone prize winner. “I wanted to know exactly how it worked, so I entered a team.

“Spieth was my first choice, but I’d been following the PGA Tour pretty closely, just as a fan, and I liked the way Kisner was playing. Reed is one of my personal favorites and fellow Texan and Finau had been playing great of late and I’d followed him since seeing him play on the Big Break on Golf Channel. To win at these games, you definitely need some skill and some insight into how the players can compete on any particular golf course. I’ve always been a fan of Duff (Jason Dufner) and I really thought he was due and, overall, I thought the guys I picked could hold up under the pressure and the conditions at Chambers Bay.

“Oosthuizen was the key pick, for me, and I’ve followed him since the 2013 Masters which I was fortunate enough to actually attend.”

Bassewitz and one of his friends each were watching from home on Saturday, during the third round of the tournament when Finau carded a 74 and Reed wrote down a 76 in his score pad, making the longtime sports industry executive think his entry was pretty much cooked. But just as Reed and Finau fell on the leaderboard, Oosthuizen climbed up with consecutive 66’s on Friday and Saturday, giving the fantasy entry new hope.

“I went out to get some lunch and my Draft Kings app told me I’d dropped down to something like 750th place. I thought it was over. Then on Sunday, my friend started charting the other entries online and he texted me to say, ‘I think you have a chance at a Top 10, maybe a Top 3!”

The roller-coaster ride struck bottom for Bassewitz when he watched Spieth double-bogey the 17th hole Par 3 at Chambers Bay, the ramifications of his three-putt from within 40-feet just sending pain through Bassewitz as he watched helplessly and figuring Spieth and Johnson would end in a tie to force an 18-hole playoff on Monday.

In order to win the tournament and a $1M, Bassewitz needed Dustin Johnson to miss, not just once but twice. If there was a playoff, he would have lost. The putt was essentially for $900,000 as Draft Kings’ second place finish was worth $100,000

“When Dustin Johnson missed that last putt, I was stunned and in shock and didn’t think it was real,” said Bassewitz. “My phone was blowing up with my friends from around the country. It didn’t sink in until I was contacted by Draft Kings about 30 minutes after the US Open trophy presentation to Spieth.

“This is something my father would have loved as he taught me a lot about the game when I was growing up. This is the second best Father’s Day I’ve ever had,” said Bassewitz, referring to best day, when his son, a recent college graduate, was born. “Think about it, on June 11th, I entered this fantasy tournament with one $20 team and now I’m a millionaire.”

Yes, a good guy from within the sports industry and a first-time daily fantasy player is now a millionaire, thanks to a wild finish at the US open and a Dustin Johnson three-putt, but more importantly, the daily fantasy fortune was awarded to a guy who has his priorities straight.

Draft Kings Seeks Licensing in Great Britain?

By @TheDailyPayoff
Indications are that Draft Kings, the Avis to Fan Duel’s Hertz status in the daily fantasy (DFS) sports arena, is looking to expand oversees, as previously indicated by the organization last December.
Bigo1 mentioned yesterday on Twitter https://twitter.com/Bigo1_/status/611200132080627712 and then Legal Sports Report followed up last night with a full report http://www.legalsportsreport.com/1765/draftkings-uk-license-application/ that Draft Kings had filed an application with the UKGC for the necessary licenses to operate in the United Kingdom.
Legal Sports Report also posted a copy of the application, which apparently seeks approval for gambling software and pool betting.
The move opens up much conversation about the future of DFS on whether it constitutes gambling, and whether Draft Kings is looking at gambling as a business. It also poses the question on if this is true, how Draft Kings’ strategic move be addressed by rival Fan Duel.

Tiger Not Like to Make US Open Cut

By Frank Scandale @FScandale @TheDailyPayoff

With 14 holes under his belt, Tiger Woods sits at +11 in the second round of the U.S. Open, near the bottom of the pack.

Trailed only by Ricky Fowler when he teed off this morning at Chambers Bay in Oregon, Woods’ quest for a 15th major will have to wait until another event.

As reported earlier, despite his 14 majors, his unparalleled history and the record holder of longest golfer in the World No. 1 spot, Woods’ odds no longer focus on whether he will win, but if he will even make the cut.

Woods was attempting yet another comeback to his old form, this time at the challenging course in Oregon that looks more like a British Open course than a US Open.

As previously reported, going off at 50-1 at Wynn Las Vegas to win the event outright, most of the focus is on whether he can make the cut, says Johnny Avello, director of Race and Sports Operations at Wynn Las Vegas.

“Even money, yes, to make the cut, and -120 to miss it,” Avello said. His reasoning? “First of all, Tiger is struggling with his game. He’s been there (at the course) for a while, maybe even a week, trying to get his game back to respectability.”

His 50-1 to win odds is probably more of a courtesy to how great a player he was. ”

“Back then, you’d be hard pressed to get 5 or 6-1 on him. But he’s not the same Tiger. He’s struggling to even make cuts. All that said, if he gets his game back to respectability and while I am not sure how many wins he will get, he is still Tiger Woods and he draws crowds.”

Avello had Rory McIlroy  as the favorite at 5-1, Jordan Spieth right behind at 7-1, then in the low double digits Phil Mickelson and Justin Rose, followed by a smattering of players at 20-1.

As of this writing, Speith was tied for the lead at -5.

Bovada sports betting also had Woods at even to make the cut and 40-1 to win. http://sports.bovada.lv/sports-betting/golf-pga.jsp They put the Mickelson, Spieth and McIlroy group as the favorites. (As of this writing, Mickelson was -3 and McIlroy -1). Woods missing the cut is the -130 favorite on that bet.

Woods is also offered at +8000 odds to shoot a hole in one at the U.S. Open this week, according to Bovada’s site.

 

 

 

 

 

Fan Duel Says NBA and NFL Rule Fantasy World

By @TheDailyPayoff

For all the disruptive forces daily pay fantasy sports have caused in the professional sports scene in the past few years, the industry’s still dominant player, Fan Duel, looks like they will stick to the core that has brought them success and players in the millions, according to their CEO at the Cynopsis Sports Business Conference Tuesday in New York.

Eccles, whose company has continued to thrive in the marketplace even with the ongoing push of Boston-based DraftKings, was frank in his assessment of the formula that has brought the company success, market share and solid partners like the NBA as well as 18 NF teams for the coming 2015 season.

He declared there are really two sports that drive the revenue, and that’s where FanDuel will stay.

“When we started our business, we saw and engaged in MLB as the dominant sport in fantasy,” he said during the closing remarks at the Time Warner Center. “However,we came to realize pretty quickly that MLB, despite their efforts to try and engage with a younger audience, has not driven adoption with pay fantasy. The marketplace is dominated by the NFL and the NBA and then everyone else and that’s where we have had our great success and will continue to do so.”

Eccles said that in the past few years over  50 percent of their revenue has come from the NFL offerings the company has, followed by 30 percent of revenue from the NBA.

MLB, he added, contributed 15 percent of their business, with other sports like golf and soccer only holding five percent of their marketplace. Surprisingly he added that he does not see that formula changing at any point in the next five years, even with the continued growth of soccer on the American landscape.

“Pay fantasy appeals to a younger demo, and that demo in the United States is driven by the NFL and the NBA,” he added. “We have seen all the work that we have done with the NBA pay dividends in fan engagement for a growing audience, and that is where we will continue to spend our marketing focus, along with what we will do around the growing NFL audience. The engaged pay fantasy player has become a more engaged fan, and that has benefitted everyone.”

Eccles also pointed out that all of FanDuel’s research has shown, somewhat surprisingly, that monetary winnings was not the primary driver for their engaged fan base. Rather the biggest driver was what he dubbed “the pregame experience,” the time when fans prepared for games by gathering and engaging with content to help them make their decisions. That engagement was what has fueled Fan Duel to enhance its daily content offerings in recent months, much like DraftKings has recently. The feeling is the better the ancillary content, the more engaged fan and the more engaged fan the better chances of cultivating him or her as a regular daily pay fantasy player.

“Every aspect of our fan experience gets better the more consumers are engaged on our site,” he added. “The better the overall engagement, the more loyal the customer becomes.”

While it was pointed out that other companies, most notably DraftKings but others like Mondogoal, which has specialized in European soccer and also launched a Women’s World Cup business have sought to diversify their offerings with niche sports, Eccles was steadfast in his belief that their research shows to fish where the biggest fish are.

“We will continue to offer games for other sports, but we know what our fans want and what they will engage with regularly, and our plan is to spend our time and our efforts there. It has worked thus far and we don’t see it changing much in the near future.”

That future appears to continue to be bright, as FanDuel will offer enhanced games around their new NFL partnerships this fall while continuing to expand their relationship with the NBA, one which many thought was not as vibrant as baseball even the last few years.

Even the disruptor it appears, knows the big players when they see them, and as the saying goes, if the pay fantasy model isn’t broke, then no need to fix it.

Fan Duel, DraftKings Ramp Up Their Content Play

Fan Duel, DraftKings Ramp Up Their Content Play

Last Wednesday at the worldwide headquarters of Topps, media types from outlets big and small gathered to talk to San Francisco Giants star Buster Posey as he talked about his new role as ambassador with the company, as well as the no-hitter he had caught the night before. The usual suspects were there for a piece of Posey, Sports Illustrated, Yahoo, AOL Sports and Fan Duel.

Wait, Fan Duel? Was there a pay fantasy element involved? Nope, but Brandon Lee from the company’s news site, was there asking questions about the no-hitter and the world of trading cards, with nary a fantasy question being bandied about. Why? Good content to keep the die-hard fantasy player more engaged on the site, and through search, to probably pull in more casual fans interested in news for now, but maybe, just maybe, they will become brand loyal enough to join in for a paid daily game or two down the line.

It is a strategy that Fan Duel Insider is embracing more and more, and as expected is also being taken on more and more by DraftKings, who, according to a weekend story in the Boston Globe, have made a huge push in hiring their own editorial staff for their content platform, Playbook, just for the same purpose; provide original non-fantasy content that feeds the needs of the fan while keeping the core player interested and on the site just a little bit longer. Engaged core players may play a bit more, while new fans may come back.

Now this is not to say that the core news and information on both sides won’t be tied to analytics and the core gamer and fantasy news. Providing that audience with core news that helps them address fantasy issues is still tantamount. However, fantasy players cannot live by stats alone, so feeding in additional anecdotal news, video highlights and original content lifts the interest and the engagement of the anyone with an affinity to sports news. The other thing such news may do will keep engaged consumers on the site, versus going to traditional news sites like ESPN or Yahoo or SI.com for the non-fantasy information. If you can hold their attention, the better chance of building more engaged audiences for things other than fantasy.

The expansion into original content follows some of the other larger marketing initiatives that both companies have used to gain the attention of the consumer. While not into boxing per se, Fan Duel spent money to sponsor Floyd Mayweather Jr., while Draft Kings cashed in on a somewhat unconventional spend against the Belmont Stakes, grabbing great exposure in places like the cover of Sports Illustrated with their signage. Neither spoke directly to the core pay fantasy audience, but it helped remind casual fans that the companies are engaged on the business of sports, albeit mostly in the pay fantasy business.

Will such investments pay off? According to the Globe article, since a redesign in March, average page views per visit have increased 52 percent and time on the site is up 152 percent for Draft Kings, while Fan Duel’s insider content has also seen a spike in visits. Neither can say yet if that spike has led to more pay fantasy money being spent, but the feeling is probably more eyeballs more of a chance of engagement. The use of news content is also much more cost-effective than some of the other high ticket promotions and ad spends the company has done, and with partners coming on board more prolifically; ESPN and MLB with DraftKings, the NBA with FanDuel, the ability to share content and gain traffic is probably just a bit easier, especially if their staffs can become accredited members of the media with the ability to gain content at events. That content would probably include unique video, which remains king for drawing audiences.

So while you will probably continue to see ore on the sponsor spend side than on the news gathering side for both, or any, fantasy sports company, it is interesting to see how important well-rounded and expansive content is becoming as the battle for casual engaged consumers heats up across the summer.

NFL scraps fantasy sports convention; NHL commissioner’s sports betting myopia

Hypocrisy was on full display on Friday as the National Football League forced the cancellation of a fantasy sports convention and the National Hockey League’s boss revealed a hugely selective blind spot.

On Friday, word spread that the NFL had pulled the rug out from underneath a fantasy football convention that was scheduled to take place in July at a casino in Las Vegas. The National Football Fantasy Convention (NFFC), a three-day affair fronted by Dallas Cowboys quarterback Tony Romo along with a number of other NFL players in attendance, was to be held at the Sands Expo, a convention space offshoot of Las Vegas Sands’ Venetian Resort Hotel Casino.

The NFCC released a statement saying they were “postponing” their inaugural event until July 2016 due to “sudden and unexpected opposition taken by the NFL concerning player participation and their perceived association with gambling for an event in Las Vegas.” The NFCC says its 2016 event will now take place in Los Angeles.

An NFL spokesman told Fox Sports that “players and NFL personnel may not participate in the promotional activities or other appearances or in connection with events that are held at or sponsored by casinos.” For the record, Sands Expo contains no gambling facilities.

Fan Duel, DraftKings Spend Away On Sponsorship; What’s The ROI?

Fan Duel, DraftKings Spend Away On Sponsorship; What’s The ROI?

The past week we have again seen the turf war/marketing grab escalate for brands looking for exposure in and around hot properties. From Monster Energy taking a Belmont Stakes sponsorship along with DraftKings, to DK’s annexation of all pieces of Madison Square Garden, including the jersey sponsorship for the New York Liberty, the massive spend to try and get eyeballs continues along for brands that are looking to capture and engage consumers, especially milennials around sports.

Do these type of sponsorships work? Do they fit a bigger picture or are they large gambles designed to get some corner of space so that competitors don’t get it before them. Recently Fan Duel, which has no real boxing business, chose to spend money to sponsor the Mayweather-Pacquaio fight and took up space on the champions fight shorts. Was there an ROI on that for FD, which also has begun developing their very smart activation plan for the upcoming NFL season, or was it a play to make more people just see but not engage in what they are doing.

“As the number of marketing messages proliferates due to digital, social, mobile media, it is increasingly critical for brands to develop fully integrated marketing platform, that ideally organically associate the brand with the content or sports property that is sponsored,” said Ray Katz, an instructor in the graduate sports management program at Columbia University and veteran sports marketing executive. “The programs should also address multiple objectives that include sales, “ownership”, engaging and exciting employees, and B to B considerations. One-off’s tend to be lacking in consumer engagement and long term brand benefit.”

While there is no doubt that even behind the scenes Draft Kings and Fan Duel are looking at those who spend money on legal sports gambling as part of their universe, publicly both companies continue to draw a line between fantasy and legal sports wagering, two properties heavily engaged with horse racing and boxing. So why do these sponsorships? One is the entertainment benefit that comes with such mega events, getting access to seats and experiences for your most engaged pay fantasy players, as well as for sweepstakes. Another is to prime the pump and build an audience which may or may not exist for a melding of sports gambling and pay fantasy down the line, or to at least engage known legal gamblers with more awareness for what can be done in pay fantasy today for consumers. If they bet legally, then maybe they are candidates for DK or FD. Still with this massive marketing spend, is it smart and strategic, or can the money best be spent elsewhere?

“An example of an effective integrated program having continuity is Penn Mutual’s title sponsorship of Collegiate Rugby 7s as well as the Varsity Cup, a 15’s event,” Katz added. “In this platform, Penn Mutual actually uses a Rugby theme for their annual report, titled a rapidly growing event on NBC networks, utilized the event and overall platform as a recruiting tool to attract younger agents, while making the brand relevant to a younger and largely upscale demographic as well. The signage was supported by Rugby themed advertising, which is becoming more prevalent as the sport becomes more mainstream and will constitute some of NBC’s most exciting new programming as a new Olympic sport.”

He went on to say, “ On the horse racing front, Belmont sponsorship programs which try to capitalize on the prospects of a triple crown would be best served using the Belmont as a kickoff point and then having some continuity through the Breeders Cup (Belmont to Breeders). Marketers should also consider the fit of demographics of horse racing, generally an older demographic with their target audience.”

So as the Triple Crown comes to an end this weekend, the sports marketing world will be lining up trying to tap the spending trough of both massive fantasy players, especially as large events, even those like tennis and golf that still don’t have a massive fantasy audience come into play. Whether those spends tie to a bigger cohesive plan, as Draft Kings has done with MLB and Fan Duel with the NFL remain to be seen. One thing is sure, the outreach to locate invested consumers for pay fantasy is going wider than it has ever been, and players in areas like horse racing and boxing are more than willing to take the money and roll the dice.

Fantasy Betting Has Long Been Part of the Scene – Just ask Mets and Yankee fans

Fantasy Betting Has Long Been Part of the Scene – Just ask Mets and Yankee fans

By TERRY LYONS, Contributing Columnist
@terrylyons @The Daily Payoff

The intersection of sports gambling and fantasy sports has been a key crossroad of the American sports scene long before the daily fantasy providers were sinking millions into a constant stream of radio and television ads.

While betting on the outcome of games, usually on a money line, might’ve put former Cincinnati Reds great Pete Rose in a predicament, the average baseball fan has long enjoyed the thrill of predicting the future.  Whether handicapping the pitching duel or wagering ridiculously on the very next pitch being a ball or strike, the experience has captivated the fans.

As the current climate continues to change, quicker than the ice melts in Antartica, the leading sports executives are recognizing the change and see the business opportunity on the horizon. But they would only have to look back to the summers of ’74 and ’75  in Queens County, New York to have seen the future.

While the New York Yankees and New York Mets were each playing mediocre baseball, teetering around .500, fans at Shea Stadium were treated to games nearly every night as the Yankees were relocated across the East River when The City of New York renovated Yankee Stadium for two seasons. The Mets’ roster featured Cy Young award winner Tom Seaver, who went 22-9 in ’75 when his club finished 82-80 and 10 games back of the “We Are Family” Pittsburgh Pirates, and the Yanks’ roster included the core of eventual ’77 and ’78 World Series championship teams. Yet the opportunity for a baseball fan that summer was simply the ease of getting great seats at prices that were next to nothing, especially for the displaced Bronx Bombers.

It was the perfect summer for high school buddies to head out to Shea, grab box seats for $5 apiece and play a game we simply called, “Pass the Hat.” We knew it was probably illegal but a harmless form of wagering.
Little did we know, it was an early form of fantasy baseball that kept us fully engaged each and every at bat.

The rules were simple. The game worked best when you had at least four participants, great when you had six or eight. To start, someone would take off their baseball cap and everybody would “ante up” a buck by tossing it into the cap. Batter up and the person holding the hat was eligible to collect the loot if a player got a hit when you were holding it. If the batter made out, you were obligated to toss in another $1 buck and pass the hat to your buddy seated next to you. If a player walked, you passed the hat free of charge, so, in our game, a walk was not as good as a hit. One caveat was the luck of holding the hat when a home run was hit. In that case, not only did you collect the money in the hat, but everyone participating was required to toss another dollar at the lucky winner, and then ante up again before the next batter.

As the years went by, we entertained ourselves with some other variations of our game, including an end-of-inning wonderkind called, “Grass-Mound-or-Other,” which required you to guess where the ball would end up after an inning ending out. After the final out, say a fly ball to left field, we eagerly watched the left fielder jogging towards his dugout to see if he would roll the ball to the pitchers mound and whether it would rest on the dirt hill (3-1 odds) or just off the edge and on the infield grass (even money). If the ball were tossed to a fan in the stands or carried into the dugout, all bets were off unless you had previously designated “other” which would get even money. There were many a times we had to stand on our infield box seats to get the proper angle on a ball tossed over the mound and nearly out-of-sight. It was glorious way to pass the time and highly intriguing, with the proof always shown through the fact neighboring fans would want to “get into” the game.

Surely there are hundreds of other New Yorkers with similar stories and different variations of the games they played at the ball field, and tons of examples of how soccer fans at Arsenal or dozens of other European Premier League clubs can wager on the first goal, the next goal or some other occurrence whether it involved the outcome of the game or just the next statistical transaction.

To date in the North American sports world, no league or venue has been permitted to get into the action because of federal laws. The recent influx of daily fantasy sports (DFS) is the first hint of gaming activity on an “official” basis, as Major League Baseball, via its digital media arm, MLB Advanced Media, has partnered with Draft Kings on an official sponsorship package.

That package consists mostly of touting their “experiential” offerings for tickets and other game enhancements or hospitality and trips.

The NBA partnered with Fan Duel, taking an equity position. However, the DFS offerings, to date, have only been salary cap-style games. The site infrastructures of either Fan Duel or Draft Kings have not been altered to allow in-game adjustments to line-ups or other such variations, such as predicting fantasy stats in an “At Bat” or single inning.

NBA Commissioner Adam Silver has boldly stated his viewpoint to potentially legalize sports gambling and take it away from the off-shore web sites or back-room bookies and into the open. His counterparts in charge of other major sports leagues have not been so forthcoming, especially the NFL and MLB which both seem to be burying their heads in the sand while Silver steps up, communicating transparently by way of his breath-of-fresh-air op-ed piece written in The New York Times last November 13th. http://www.nytimes.com/2014/11/14/opinion/nba-commissioner-adam-silver-legalize-sports-betting.html?_r=0

Wrote Silver in the NYT, “Betting on professional sports is currently illegal in most of the United States outside of Nevada. I believe we need a different approach,” noting the massive amounts of money wagered through “illicit bookmaking operations” or “shady offshore websites,” as he noted the popularity of sports gambling in the international world that is so much a part of the NBA’s global business plans.

In closing, Silver wrote under his by-line, “I believe that sports betting should be brought out of the underground and into the sunlight where it can be appropriately monitored and regulated.”

But what wasn’t a major statement in Silver’s op-ed or yet recognized by the powers-that-be in any of the North American major sports, is the fact more lenient federal and state laws on gaming and fantasy sports will bring about more engagement with the fans.

“It can keep people much more engaged at so many different points in a game,” said Joe Favorito, the Director of Industry Relations and a faculty member at Columbia University’s sports management program. “If a baseball game score is one-sided, you might stay for the entire game,” he said while noting the payoffs for “In-game” wagering/entertainment might be a coupon for a free hot dog in the eighth inning or a promotion to get more 20-somethings to attend a different game, later in the season.

So while the wager doesn’t have to be about money, the bottom line for a sports team, league or venue should now be to use newfound, hand-held “app-crazy” technology and obvious widespread acceptance of gaming, to offer-up another form of in-game entertainment and keep the fans happy. Traditionalists might scoff at the idea, but they don’t have to play, just the way some sports fans go out to the races just to see the horses run or intelligent readers buy Playboy for the articles.

Personally, I’d like to see a much more transparent viewpoint come from the Park Avenue hallways of both Major League Baseball and the National Football League, as those two sports have the most to gain. But, until then, I’ll head out to Yankee Stadium or the new Shea (they call it CitiField), with my old buddies, my baseball cap and $20 or $30 in singles.

 

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.

Johnny Avello Horizontal 2 4Mg

“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.