A new group representing nearly three dozen small fantasy sports operators wants legislators to push back against the duopoly enjoyed by daily fantasy sports giants DraftKings and FanDuel.
On Tuesday, the Small Businesses of Fantasy Sports Trade Association (SBFSTA) a new organization comprised of 35 small daily and season-long fantasy operators, held a press conference in New York aimed at alerting legislators to their complicity in helping DraftKings and FanDuel fend off current and future competition.
The SBFSTA chose New York as the site of their debut in part due to pending DFS legislation in the state that would require operators to ante up a $500k deposit in order to obtain a New York license. The SBFSTA insists that this hurdle is sufficiently high to preclude licensing of most fantasy operators other than DraftKings, FanDuel and third-ranked DFS site Yahoo.
Legislation recently approved in Indiana and Virginia sets a lower bar ($50k) for initial entry but the SBFSTA insists this is also too high. The group would like to see an option for smaller operators to pay 5% of net revenue, rather than the 15% of gross revenue proposed under New York’s pending legislation.