Having been in the same fantasy football league for about 30 years I am an O.G. in the world of fantasy sports. 30 freaking years! Is it as much fun as it used to be? Absolutely not. Do I do it for the gambling experience? Absolutely not. Like sports betting, does it help me enjoy the action of sporting events more? You bet your life. Could I live without it. Ubetcha.
For normal sports fan, fantasy sports are a social endeavor. Competition is amongst friends, colleagues, classmates or neighbors with rewards based mostly in bragging rights and trash talk. But for fans who are inclined to take the next step towards sports gambling, legal DFS is the perfect gateway-drug.
DFS Is Still Going Strong
Expanding legalized gambling across the U.S. should have started to usher in the beginning of the end for fantasy sports. But the rumors of its demise have been greatly exaggerated. Big money investors like Mark Cuban and Phil Hellmuth (yeah, THAT Phil Hellmuth) have made recent splashes into DFS. The industry is still top-heavy with 2 major players, FanDuel and DraftKings. But a handful of smaller players have risen from the ashes.
Why would this be happening when in 2015 there were roughly 80 burgeoning DFS providers that was narrowed to a final 2 in the short span of a few years as legalized sports betting began its legislative crawl across the land?
It seems rather obvious that Daily Fantasy Sports are being used to woo customers in states where pure sports betting is still illegal, and also capture younger gamblers. For the “of-age” folks in states like California and Texas who cannot place a legal sports bet, it is a no-brainer. Get these folks signed up now so when their states become “enlightened”, they can transition to other games. I have no problem with this strategy as they try to create a sort of first-mover advantage in those markets.
Transition from DFS to Sports Betting
But I do have a small issue with the difference in legislation that creates the opportunity for these companies to woo 18-21 year olds into gambling when their states require players to pass their 21st birthday to make a sports bet. These DFS companies are hoping to capitalize on this difference by gaining traction in this group and transitioning their accounts as those customers come of age. The practice seems a bit predatory but I cannot judge the companies. They are acting within the framework they have been provided. This landscape is a legislative oversight that should be considered and managed by each state. If Daily Fantasy Sports are going to be used as an appetizer before the main course of sports betting, the rules of who can play should be the same.
