On Monday, the Supreme Court declared that the 1992 Professional and Amateur Sports Protection Act was unconstitutional, effectively opening up sports betting for states to regulate the long-restricted pasttime. It’s a landmark decision that will likely have tangible effects sooner rather than later.
While federal regulation is possible, New Jersey and a handful of other states have already fast-tracked legislation that could mean that sports betting could go live in 2018. In New Jersey’s case, sports betting could launch within a month, which would make the state the second to offer sports betting in the United States after Nevada.
As many as 32 states — and online fantasy sports companies like DraftKings — are already prepared to bet big on sports gambling after the Supreme Court's decision opened the door to legalization nationwide.
— NBC News (@NBCNews) May 15, 2018
Move Towards Sportsbetting is Change of Historic Strategy
The daily fantasy sports industry has long tried to distance itself from sports betting, arguing that the game is a skill-based game outside of the realm of sports betting. Now that sports betting tide is turning and will quickly gain the endorsement of many states — dozens of states are expected to legalize betting within 5 years — the industry is now embracing an industry that will likely grow swiftly over the coming years.
After the Supreme Court released their decision on Monday, top daily fantasy sports were quick to react to news that will likely significantly benefit the largest DFS sites. FanDuel has been rumored to be an acquisition target while DraftKings could get into the sports betting game soon, leveraging a new product with the DFS platform.
Although no changes are imminent to the DraftKings or FanDuel experience, both sites are already acknowledging overlap and even teasinga sports betting launch in time for football season. Matt King, the CEO of FanDuel was excited about the future held for the company. “We have exciting ideas from a game features standpoint that we will embed into our current experience. What users will see is a simple integrated experience in our core app.”
According to Fortune, both DraftKings and FanDuel hope to launch some sort of sports betting platform in time for the NFL season. DraftKings noted that they have been working on their sports betting platform since 2017 in anticipation of the SCOTUS ruling. They will now work with states to apply for licenses in jurisdictions where legalization will happen soon.
DraftKings and FanDuel Statement on Ruling
DraftKings issued a statement shortly after the U.S. Supreme Court issued a decision on Tuesday:
Our mission has always been to bring fans closer to the sports they love and now, thanks to the wisdom of the Supreme Court, DraftKings will be able to harness our proven technology to provide our customers with innovative online sports betting products,” said Jason Robins, CEO and co-founder of DraftKings. “This ruling gives us the ability to further diversify our product offerings and build on our unique capacity to drive fan engagement.
FanDuel also released a statement on Monday via their website.
“The Supreme Court’s decision, which paves the way for states to legalize sports betting, creates an enormous opportunity for FanDuel as our platform, brand, and customer base provide a unique and compelling foundation to meaningfully participate.