DraftKings and FanDuel have both announced that they will no longer be offering real money daily fantasy sports action on college sports. It’s a move that offers the struggling operators a big PR win, without taking much off their bottom lines.
The action, which was made late last week, applies across the entire United States and was immediately lauded by NCAA president Mark Emmert. In a statement to the press, Emmert said:
We appreciate and commend DraftKings and FanDuel’s action to stop offering contests involving college, high school and youth sports…This action culminates months of hard work between all parties to reach a place that is good for amateur sports and most importantly, the young people who participate.
Sucking up to the NCAA is a particularly good move for the daily fantasy sports industry as they take their fight for survival to the state level. Lawmakers at the state level are more likely to craft DFS-friendly legislation if the sites aren’t running afoul of the powerful NCAA. Those same lawmakers are also apt to include protections for amateur athletes, including college players, in their DFS legislation.
The move also makes it appear as though the daily fantasy sports industry is capable of self-regulation. That could prove to be a very big deal as more and more state governments debate the legality of the once-mighty gaming vertical.
It’s also safe to say that the move will provide DraftKings and FanDuel with some much-needed good publicity.
And as PR moves go, this one is pretty cost-effective. After all, college sports account for only about 3% of the daily fantasy sports market.