Month: June 2017

FTC to block DFS company merger

A proposed merger between DraftKings, Inc. and FanDuel, Inc. will be challenged by the Federal Trade Commission.  The FTC claims that the merger would create a company that controls more than 90 percent of the market.

In the past rivals, the companies decided to join forces in November 2016 as each fought state regulators to get Daily Fantasy Sports legalized.  According to data from Eilers and Krejcik Gaming, the two companies have 95 percent of daily fantasy sports.

The FTC will file a lawsuit requesting a preliminary injunction to prevent the companies from closing the deal while it proceeds with an internal review to determine if the merger is legal under antitrust law.

Nevada law establishes esports betting in state

A new Nevada law signed by the Governor late last month clarified the legality on esports betting.  The new bill allows parimutuel esports betting within the state.

The new law amends language to ensure that “other events” are included in parimutuel wagering.  The gaming laws and parimutuel laws are different in Nevada and thus the law sought to clarify the legality of betting on esports.

The move is another sign that Vegas wants to be the hub of esports.  Some Vegas hotels are converting some of its space to host esports gaming tournaments.  The lure is to bring in the younger demo with hopes of it spilling into their casinos.  The new bill grants the chance for a broader opportunity to bet on esports.