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Sports in Society

FanDuel Advertising, Sponsorship Still Visible In New York Despite Hostile Legal Climate

As FanDuel "braced for a court hearing that could determine the fate of daily fantasy sports in New York, the company demonstrated that it remained committed to advertising its website" in the state, according to Tim Casey of the N.Y. TIMES. FanDuel is the title sponsor of the Legends Classic, a college basketball event that was held last night at Barclays Center, and fans attending the games "could not help noticing FanDuel’s presence." The company’s logo was "plastered on the court, on the scorer’s table, on the video screen and across electronic billboards throughout the arena." There were even FanDuel seat covers, with the company’s name "prominently displayed on the front and back of the teams’ benches." The Legends Classic is the "only tournament for which FanDuel is the title sponsor, but the company was also on display at the 2K Classic at Madison Square Garden over the weekend, and its presence was hard to miss." FanDuel’s logo was "visible on both baselines alongside other advertisements, and the company was featured on a rotating basis on the scorer’s table" (N.Y. TIMES, 11/24). ESPN's Mike Greenberg noted the NCAA has "done everything it can to distance itself from daily fantasy, up to and including if the players should be found using daily fantasy, then they will have eligibility questions and suspensions." Referencing last night's Legends Classic, Greenberg said, "The players on the court are not allowed to use the product, the fans in the building aren’t allowed to use the product, and all those watching around the state in which the game is being played aren’t allowed to use the product. But the signage is all over the place. I understand how this happened, but the optics are a joke” (“Mike & Mike,” ESPN Radio, 11/24).

ON A COLLISION COURSE: In N.Y., Carl Hulse writes the "latest collision of sports and politics" involving DFS sites and government regulation "could be bruising." U.S. Rep. Chris Collins (R-N.Y.) said, "It has taken on a life of its own." Hulse notes Collins has "been highly critical of efforts" by New York Attorney General Eric Schneiderman to "block people from playing the games in his state." Collins: "It is impacting hundreds of thousands of New Yorkers, and many of them are our constituents." The issue is "headed for a high-profile hearing of the House Energy and Commerce Committee early next year, probably just in time for Super Bowl 50." Hulse writes meddling in sports "carries risk," as politicians "can appear to be focusing on the frivolous rather than the serious things Congress should be pondering." Plus, taking on the big leagues "is a steep climb" (N.Y. TIMES, 11/24).

HEAL TO THE CHIEF: The WALL STREET JOURNAL's Sharon Terlep notes Massachusetts AG Maura Healey's proposed ban of "anyone younger than 21 from playing" DFS games "hit on a concern shared by experts on both sides of the fantasy sports debate: that these games can be especially alluring to college-aged men, who are the demographic most likely to get hooked." The youngest fantasy sports players are "an important demographic for the industry, which credits them with driving a chunk of its rapid growth." A survey by Eilers Research shows that "roughly 13% of daily fantasy players are younger than 24." Both DraftKings and FanDuel "require players be at least 18" (WALL STREET JOURNAL, 11/24). Massachusetts Gov. Charlie Baker said that he thinks the DFS regulations proposed by Healey are "on the mark" (BOSTON HERALD, 11/24). The Kraft Group President Jonathan Kraft, whose company has an equity stake in DraftKings, said of Healey's proposal, "I haven’t read her formal proposed edict or guidelines. The federal government specifically made something legal and it should be regulated. I think the fact our attorney general took a leadership role instead of grandstanding and bringing people to court is good. I think there’s a lot more important things going on in the world. But to issue regulations and guidelines I think is a smart approach to it, and hopefully, other attorney generals will copy the way it’s done" (WEEI.com, 11/23).

REGULATE, DON'T ELIMINATE: In N.Y., Peter Henning asked whether shutting down fantasy sports is "the best way to address issues raised about how they involve elements of gambling." The world "survived the elimination of most online poker sites from the United States a few years ago, so cracking down on this newest form of entertainment may not have too much of an impact." The contests are "popular with casual players who do not abuse them, however, so denying access to what is for many a harmless form of entertainment may be overkill." Massachusetts, with Healey's proposal, has "gone in a different direction that may signal a better way to deal with issues related to daily fantasy sports contests." The challenge facing the DFS companies is "getting their own level playing field through a single set of regulations that they can follow" (NYTIMES.com, 11/23).

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