Of the leading two daily fantasy sport websites that entered into the running for the disrupter 50 list the DraftKings came out on top, some people were surprised to find that it was this way round and not FanDuel who many thought were leading considerably in the market. Why DraftKings was chosen over Fanduel is purely a speculative subject with CNBC’s methodology available on line.
The Disrupter 50 list, lists the 50 private companies that it deems the most likely to succeed in becoming a major player in the business landscape, there are companies in the list from 16 different industries ranging from aerospace to retail encompassing everything in between, these companies have found niches in their chosen sector that others have missed, putting them way ahead of the competition.
Other names on the list are Uber, Snapchat and Square, this puts them up there with some big names and into a whole new territory, but the fact that they are on the list means they are heading for the top.
Earning the spot gave the DraftKings some major publicity and some air time on one of CNBC’s premier shows mad money, the segment only lasted for six minutes but gave the company ample time to explain to the viewers who they are and what they do, daily fantasy spots are gaming websites that people can bet with either real or online money, these were points that were raised by the interviewer Cramer who began the segment with “It (DFS) also happens to be one of the ways to legally gamble on the internet” followed later in the interview by “that’s my whole goal is to not be addicted” CEO Matt Kalish seemed to dismiss this and concentrated more on the question of whether DraftKings was looking to go public, the answer to this was that they are not looking to in the foreseeable future but their goal is to “build great business and engage sports fans”.
Another also referred to fantasy sports’ legal status and how it coincides with the Unlawful Internet Gambling enforcement act stating “when I see some of these games, like NASCAR do you think it’s lucky there’s a carveout, because it is a kind of a way to gamble” this statement also referred to DraftKings deal with NASCAR the previous week. There was also talk of a deal with ESPN/Disney, both questions were avoided by Kalish who went on to further promote the website stating that they now operate ten different sports with equally large fan bases, they also like to find ways to participate in the big sports events while still staying within any boundaries set.
Daily fantasy sports is becoming more legal in more and more states in the country, there seems to be a grey area as to whether is falls under the umbrella of gambling or not more people are leaning towards this being the case but ultimately it has to be if it is in the eyes of the law.