Draftkings And Fanduel Case Study Summary

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Daily fantasy sports was extremely profitable last year in the US. DraftKings and FanDuel raked in billions while the hunger for daily fantasy sports betting was at its highest. The problem, however, was that state lawmakers were not pleased by this. Starting with New York, several states have put restrictions on making wagers on fantasy sports leagues. This has cost the companies millions in lost revenue as fewer players are joining their daily leagues. DraftKings and FanDuel are not taking all of this lying down. One of the noticeable moves taken is that FanDuel has decided to expand from beyond its US focus, following the launch of DraftKings UK. The company has taken steps toward giving UK residents a chance to join in the daily fantasy …show more content…

Last year saw the scandal of a DraftKings employee wining around $30,000 on FanDuel. The problem is that the employee used insider information to make the winning bet. This resulted in an uproar as many felt that this was unfair. The companies went under the microscope to ensure their processes were not being exploited and people were playing fair. Taking steps FanDuel opening a foreign market is a good step for the company. For one, expanding to the UK, with its recognized gambling laws, opens up a friendlier market than the confrontational US one. The Edinburgh-based company has always been on the verge of overseas expansion. As Nigel Eccles put it, they had the choice of either expanding in the US which was in their comfort zone or to have minor inroads into a new market. They had opted for the US approach but with recent problems, they had been forced to go for opening a new market. It will not be easy for FanDuel. The company is still holding off on making an announcement since their license application is still in progress. Additionally, DraftKings managed to steal a march on them and is first on the market. It will be interesting to see how FanDuel will approach their market entry in the coming

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