DraftKings has spent months "developing new procedures and controls that will help the company comply with a long list of new government regulations," according of Curt Woodward of the BOSTON GLOBE. Fantasy sports customers have "already seen the effects, including a sign-up process that relies on more sophisticated tracking of players’ location and the kind of identity verification you might expect from a credit card company." TV ads "will be back," but will be "less flashy and not so frequent." DraftKings is not likely to "repeat the explosive growth that garnered so much attention from regulators in the first place." However, industry observers said that the new landscape also means that DFS companies, "which still don’t make money, might have a shot at becoming sustainable businesses." DraftKings was "already preparing for tougher regulations because of its expansion" to the U.K., where many forms of online betting "are legalized and subject to government oversight." However, the surge of new rules in the U.S. "forced DraftKings to build new tools to ensure the company and its customers are in compliance." DraftKings has also "paid outside vendors for more robust ways of keeping its nose clean." DraftKings "hired IDology Inc., which aggregates credit records and other information to verify a person’s age and identity." The company also has a team of fraud analysts "monitoring incoming players and investigating accounts that are flagged for suspicious or unusual behavior" (BOSTON GLOBE, 8/18).
DON'T CALL IT A COMEBACK: In Las Vegas, Richard Velotta notes FanDuel and DraftKings are "angling to return to the Nevada market and a representative will make a presentation to the Nevada Gaming Policy Committee next week." Washington-based Orrick law firm public policy attorney Scott Ward is "expected to address the committee Tuesday on proposed legislation establishing a framework for regulating daily fantasy sports in the state." The two companies "abandoned the Nevada market in October" when regulators determined they were "required to be licensed" (LAS VEGAS REVIEW-JOURNAL, 8/19).
