DraftKings and FanDuel on Thursday said that they "are suspending contests on college sports indefinitely in all states as part of a deal with the NCAA," according to David Purdum of ESPN. The "voluntary decision" comes after "months of discussions" between DFS sites, the NCAA, member institutions and state legislatures. NCAA President Mark Emmert in a statement said, "This action culminates months of hard work between all parties to reach a place that is good for amateur sports and most importantly, the young people who participate. We will work diligently with our member schools over the coming year to ensure such amateur sports 'carve outs' are included in pending states' legislation." Purdum noted all college contests "will end after this week's college basketball games." College sports represent 3% of FanDuel's revenue, and DraftKings' NFL market is "10 to 20 times larger than the college football market." More than 30 states "have introduced fantasy sports legislation this year," and only five "are considering bills that include a prohibition on college sports." The NCAA has been "one of daily fantasy's most ardent opponents" (ESPN.com, 3/31). In N.Y., Marc Tracy noted the decision is the "latest in a monthslong retreat" as government inquiries and popular pressure has "increased against fantasy sites" (N.Y. TIMES, 3/31).
PICKING THEIR BATTLES: In N.Y., Evan Grossman notes Yahoo Sports "did not respond to a request for comment" on whether or not it would also "cease taking college sports bets." DFS sites are picking "battles wisely these days." One proposed DFS bill in New York "includes language that would prohibit" college sports contests. DraftKings and FanDuel "are getting better legal advice these days." The sites are "avoiding a landslide of lawsuits the NCAA could have filed" if they continued college contests "after winning state approval to do business" (N.Y. DAILY NEWS, 4/1). THE VERGE's Nick Statt noted this decision "should have little effect" on either company's business. By agreeing to ban college betting, the companies "may see a boost of goodwill in more contentious legal battlegrounds." The ban is also "a symbolic victory for the NCAA" (THEVERGE.com, 3/31).
PROTECTING THE BLIND SIDE: LEGAL SPORTS REPORT's Dustin Gouker noted DraftKings and FanDuel are "trying to avoid a challenge" under the Professional and Amateur Sports Protection Act. PASPA "bars nearly all state from legalizing sports betting." It allows "wagering in Nevada and limited sports betting in Oregon, Montana and Delaware." The companies could be "trying to keep the NCAA happy so as not to dare them to challenge DFS regulation in court." Smaller DFS operators have been "using DraftKings and FanDuel as legal cover in states with negative environments," but it remains to be seen if they will "fall in line." Not all operators "offer college contests," but ones that do might not "be willing to give up college contest revenue, when DraftKings and FanDuel in essence are handing market over to them" (LEGALSPORTSREPORT.com, 3/31).
