Leaving no question about where he stands on the issue, MLB Commissioner Rob Manfred yesterday at the IMG World Congress of Sports emphasized that he and team owners see a clear line of demarcation between daily fantasy and gambling. As a result, they intend to take advantage. Manfred, whose league
has a deal with DraftKings, said, “It’s clearly a space that’s evolving quickly. I think it’s important to begin with the fundamentals when you talk about gambling. We are always going to have Rule 21, which is the rule that prohibits any on-field personnel from being involved with gambling of any sort. That’s always going to be the case. The question comes when you realize there’s been a massive change in terms of the legalization of gambling in the United States. What should you do with respect to off-field issues, sponsorship, ownership stakes in teams, etc.? What I’ve said publicly is there’s been enough change in the regulatory environment that it’s important for me to have a dialogue with the owners about where they want to be in that space.” He continued, "With respect to DraftKings, I kind of see that in a different category. I kind of think in categories. DraftKings is fantasy -- it’s not gambling. ... There is a clear legal line and, quite frankly, we spent some considerable effort and money to make sure we knew where DraftKings is in relation to that line and we’re very comfortable with the idea that it’s fantasy. Having said that, fantasy is a very important method of engagement, particularly with younger people. DraftKings is very aggressive; we think it’ll be a great partnership for baseball going forward.” Manfred added, “Everyone knows there’s nothing that attracts young people like technology” (
Adam Stern, Staff Writer).
BATTLE OF THE BANDS: In N.Y., Ben Fischer wrote
ad exclusivity on ESPN "is a major win for DraftKings -- and has FanDuel rejiggering its advertising strategy." FanDuel "will likely exceed DraftKings' capitalization when it closes its next venture round in the coming months, so the financial arm's race is not hugely significant here." But neither company is profitable as they "continue to spend heavily on marketing to add new users." FanDuel has been "preparing for the possible loss of ESPN for nearly six months, thinking the network might launch a daily fantasy business of its own." FanDuel has "already paid for advertising on ESPN" through '15, which "includes the all-important fall football and early basketball season." FanDuel Communications Dir Justine Sacco said of ESPN, "They've been a great partner, but we still have three times as many users as DraftKings." Fischer noted other major FanDuel ad platforms "include CBS Sports, where it has an exclusive advertising relationship, Yahoo, Fox Sports, and deals with leagues and teams"
such as the NBA (
BIZJOURNALS.com, 4/8).
