The daily fantasy sports market is a multi-billion dollar industry in the United States and is described by gaming analysts to be far more lucrative than the online poker industry. The daily fantasy sports market is currently dominated by DraftKings and FanDuel while Yahoo’s daily fantasy sports website and Amaya Inc’s StarsDraft battle it out for third and fourth place respectively.
Canadian based Amaya Inc who owns PokerStars and Full Tilt Poker, two of the biggest online poker brands in the world recently decided to diversify its portfolio and see if it can break into the daily fantasy sports market. The company bought Victiv during the start of 2015 and since then has competed with Yahoo for third place.
The daily fantasy sports market received negative publicity during the past few weeks after news broke of an employee from DraftKings winning $350,000 from a FanDuel contest by using inside information he obtained due to the nature of his job. The employee wasn’t arrested as he did not break any laws that govern the daily fantasy sports market.
DraftKings and FanDuel control more than 90% of the daily fantasy sports market and spent more than $60 million to promote and advertise their brands during the opening week of the National Football League and brought in a significant number of customers and revenue.
Amaya Inc recently called for legislators to bring in more regulations to control the daily fantasy sports market and ensure that the system is not violated. The company stated that current regulation has fallen short and new laws must be passed to ensure that the consumer is protected and that regulations are similar to other gaming activities that are allowed in the state.
Both PokerStars and Full Tilt Poker recently gained entry into the New Jersey online poker market after a long review process. Adam Krejcik, gaming analyst from Eilers Research said that Amaya wants to make sure that it foray into the daily fantasy sports market meets regulations at all times and Amaya is currently working on building a positive relationship with regulators in the U.S.
In a statement, Amaya Vice President of Corporate Communications Eric Hollreiser stated that
Regulators in the U.S. must adopt tougher restrictions that safeguard players and institute controls. We are launching an active effort to work with states to enact legislation that meets the consumer protection interests of all parties