Daily Fantasy: Meteoric Rise, Legal Questions, and Unfolding “Scandal”

Now that we are into the second month of the football season – what is the biggest story of the season? Well, if you have a television, computer, or smart phone, you know that the answer is DAILY FANTASY. And that was before the “scandal” (to be discussed later) that unfolded just as I thought I had completed this article. Led by FanDuel and DraftKings, who have a combined over 95% market share, a recent Eilers Research Report (“Eilers Report”) made a baseline projection that daily fantasy sports entry fees will reach $2.6 billion this year and skyrocket to $14.5 billion by 2020. In fact, DraftKings and FanDuel were estimated to have collected approximately $60 million in entry fees in just the first week of the NFL season. Each company is valued at over $1 billion. The Fantasy Sports Trade Association estimates fantasy players have grown from 55,000 in 1988 to 46.2 million this year, with 8.9 million playing daily fantasy games. And daily fantasy isn’t just the talk of the football season, it was the talk of the recent Global Gaming Expo (“G2E”) in Las Vegas.

We see their marketing everywhere. The Eilers Report estimates that DraftKings and FanDuel have respectively spent $224 million and $97 million for marketing in 2015, equating to a per player acquisition cost of $190 for DraftKings and $110 for FanDuel. And where has much of their marketing money come from? The NFL, NHL, NBA, MLB, MLS, and NASCAR have all either invested in or entered into business relationships with FanDuel or DraftKings, as have many individual teams. Broadcast/media companies such as ESPN, Fox, Google and NBC Sports have also made investments or entered into partnerships with FanDuel and DraftKings. And the story does not end there. Yahoo and CBS have entered the mix, “drafting” off of their season long fantasy customer lists.

Daily Fantasy: Meteoric Rise, Legal Questions, and Unfolding “Scandal”.pdf

Blurred Lines or Bright Line Between Gaming and Medical Marijuana

Last year, when the song “Blurred Lines” blasted over the airways, no one, including the recording artists (at least they claimed) realized that lines had been blurred between the popular hit song and a song titled “Got to Give It Up” written by music sensation Marvin Gaye. However, as determined by a jury earlier this year, recording artists Robin Thicke, Pharrell Williams, and T.I. did in fact blur the lines when they produced their hit single without securing the legal rights to the song.

Interestingly, in 2014, Nevada experienced its own form of blurred lines relative to the anticipated approval and operation of medical marijuana establishments and gaming. By way of background, Nevada legalized gaming in 1931 and since that time its success has been largely attributable to the regulatory oversight of the industry, coupled with the obligation to ensure that gaming is free of criminal elements. NRS 463.0129. The policy that the Nevada gaming industry remain free from criminal elements isn’t limited to those individuals included in Nevada’s Black Book or to applicants with transgressions in their background, but instead it contemplates gaming licensees operating lawfully – meaning that they will not engage in business practices that are contrary to state and/or federal law. NRS 463.1405, NRS 463.151, 463.170 and 463.200.

Read complete article here – Blurred Lines or Bright Line between Gaming and Medical Marijuana

Regulating the Truth

That should be no surprise to anyone, as Atlantic City – and its nearly four-decade-old experiment in casino gaming – has always been ground zero for anyone looking to understand gaming and its impacts.

The greatest piece of disinformation is that the recent closing of casinos casts a pall on the effectiveness of the New Jersey regulatory system. The question that arises is: If the regulation was effective, the city would not be having problems.

Casino Journal March 2015.pdf

On Bill Eadington and serious discussions

Date: 04/10/2013
Publication: Casino Journal Magazine
CooperLevenson Publication: Casino Journal Magazine
Summary: Bill Eadington, longtime director for the study of gambling and commercial gaming at the University of Nevada Reno passed away in February 2013. He was a pioneer in the field.
Article: Casino Journal April 13.pdf

Seeking Payback

When you think about the amount of money businesses spend on collecting outstanding debts you realize that those costs are ultimately passed on to
consumers. Now imagine, if part of that cost could be borne by the government,
and the culprit could be charged criminally. If your state relies on its primary industry to serve as its economic engine, chances are the legislature makes
it a crime to draw and pass bad checks, as well as outstanding markers.

In Nevada it is a felony to intentionally draw a marker or pass a check with a
value of $250 or more in order to obtain money, delivery or use of property,
services, or credit extended by a licensed gaming establishment. Nevada Revised
Statute (NRS) 205.130 et. seq. The original statutory scheme was promulgated in an effort to protect businesses from being victimized by dishonest customers purchasing goods or services knowing there were nonsufficient funds to pay for the costs incurred. In 1983, the statute was amended, to include “credit extended by any licensed gaming establishment,” primarily to provide criminal
jurisdiction over otherwise untouchable international gamblers.

Read complete article here – Seeking Payback