The daily fantasy sports industry was "dealt a new blow Friday when Citigroup said it would begin blocking New Yorkers’ debit and credit card payments" on FanDuel and DraftKings, according to Bogdanich, Glanz & Williams of the N.Y. TIMES. Citi in a statement said that it would "block the payments until the New York courts ruled on the legality" of DFS. Citi in its role for DFS sites "provides money through its cards," while payment processing company Vantiv, which last week announced it would cease working with FanDuel and DraftKings, "processes the bets." Meanwhile, sources said that MLB has "formally notified" DraftKings that it "reserves the right to terminate its exclusive marketing agreement with the sport if the courts find daily fantasy to be in violation of New York law." Bogdanich, Glanz & Williams note these developments "underscore the rapidly sinking fortunes of an industry that just four months ago seemed to be a sure bet." The situation is "deteriorating to the point that some experts wonder about the survival of the industry as it exists -- whether it can outlast the very lack of regulation that allowed its untrammeled growth" (N.Y. TIMES, 2/6). In Miami, Michelle Kaufman noted "five states have banned" DFS, and "others might follow suit." DraftKings co-Founder & CEO Jason Robins "would not discuss the status of the legal proceedings." Robins: "The business is nerve-wracking, but it’s exciting, too. You’re in a race and all you can focus on is how can I keep going and keep building this thing? If you can’t just zone in on what you’re doing, it’s going to be very hard to be successful because the ups and downs of starting and building a company are tremendous. The highs are high, the valleys are low, and they can switch day to day. If you get caught up in that and don’t just keep your eye on the ball, you can get distracted and get lost in the emotions of it all" (MIAMI HERALD, 2/6).
THE BRITISH ARE COMING: In Boston, Curt Woodward noted DraftKings is "now accepting fantasy sports wagers from players" in the U.K., "completing a long-delayed international expansion that could help the embattled company add a critical chunk of new customers." Players in the U.K. "will be able to compete against DraftKings' existing customers in North America." Soccer is "expected to be the most popular sport" (BOSTON GLOBE, 2/6). DraftKings Chief Int'l Officer Jeffrey Haas said of U.K. expansion, "Our biggest challenge is going to be education. People never have seen a product category like ours before." Haas said the company is "looking into adding games for additional leagues" after recent deals with some EPL clubs. He added that "much of the company’s education efforts will be through those partnerships and online content designed to acclimate new players." Haas said that the "major advertising blitz in the U.S. this past fall is not necessarily coming to the U.K." He said that DraftKings "will prepare for a larger marketing push this summer" ahead of the '16-17 EPL season (BOSTON HERALD, 2/7).
BE A LEADER: The LAS VEGAS JOURNAL-REVIEW ran an editorial under the header, "Nevada Should Lead Way On Daily Fantasy Sports Regulation." Nevada is "known as the 'gold standard' for gambling regulation in the United States, and with good reason." The state's approach to regulation "embraces new technology and innovation, while ensuring fair games and protecting the rights of players." There is "no reason any other state should jump ahead of Nevada when it comes to dealing with this issue" (LAS VEGAS REVIEW-JOURNAL, 2/5).
