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DFS legislation would push small operators out of business

Wednesday, March 30, 2016 : SMALL FANTASY SPORTS STAKEHOLDERS TAKE ON PERCEIVED DUOPOLY IN NEW YORK STATE

Proposed legislation would push small operators out of business, says SBFSTA.

A newly formed coalition of the smaller fantasy sports business and vendor sector says it will fight the duopoly comprising FanDuel and DraftKings who support  proposed New York State legislation that would see prohibitive licensing fees of $500,000 and a tax regime of 15 percent of gross gaming revenues effectively put small operators out of business.

The Small Business Fantasy Sports Trade Association (SBFSTA) formed when the Fantasy Sports Trade Association (FSTA) was deemed to have been co-opted by FanDuel and DraftKings and no longer represented the interests of all members big and small, SBFSTA said.

“Policy makers and the public have been led to believe that DraftKings and FanDuel speak for all fantasy sports operators. They do not,” Alex Kaganovsky, spokesperson for the SBFSTA said.  "We will take this fight across the country on behalf of all of the fans.  We will not stand by while the two major players in the industry, which have direct financial ties with three of the major professional sports leagues, are permitted their own duopoly in New York."

Kaganovsky said in a press statement that as written, the current New York bill sets up a battle between David and Goliath and is little more than a concealed effort by DraftKings and FanDuel to eliminate competition by driving out the hundreds of small operators who cannot possibly pay the high fees and taxes called for in the legislation.

"Mom and Pop type businesses count for about 95 percent of the fantasy sports industry. There is a lot more to fantasy sports than DraftKings and FanDuel. Small businesses have been the lifeblood of this industry for decades.”

Recent legislation passed in Virginia and Indiana will also have a devastating effect on small fantasy sports businesses, leaving only the large operators room to afford new licensing fees and taxes.

"Existing small businesses and start-up companies need smart legislation that will allow them to operate and thrive in the great state of New York alongside the billion dollar giants like FanDuel and DraftKings," Kaganovsky concluded.

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Gambling News :

2016 WPT Borgata Main Event Results - @MrJesseJames888 Four years ago the poker world watched as Jesse Sylvia and Greg Merson fought it out in the heads up of the World Series of Poker main event, with Sylvia narrowly defeated but taking home a second placing pay check for $5,292,889.

G-Sports debuts with the game Road Redemption - #esports Land, online and mobile gambling publisher Gamblit Gaming has debuted in the burgeoning eSports sector, unveiling its new eSports platform branded G-Sports with the hit PC and console game Road Redemption.

French licensed gambling operators lost $5M in 2015 - #france Numbers released by the French online gambling regulator ARJEL have illustrated the continued folly of a ring-fenced and restricted online gambling market saddled with a harsh and operator-unfriendly tax regime.

NO PRIVATISATION FOR ONTARIO LOTTERY - The privatisation of the Ontario provincial lottery will not go ahead despite proposals by major companies like IGT-GTech, Scientific Games and Rogers Communications submitted in response to the provincial government’s 2014 Request for Proposals.

Space Invaders wins Best Slot Product Award - The growing emphasis on skill-based slot machines that are more appealing to the millennial demographic has seen Scientific Games awarded a Best Slot accolade for its Space Invaders game at the 2016 Gaming and Technology Awards.

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NEW MARKETING CAMPAIGN FROM LADBROKES - The Ladbrokes land and online gambling group has launched its latest marketing campaign, with the first television advertisements ready to screen this Saturday.

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BetConstruct adds virtual sports products - The Golden Race package includes premium virtual content including; football, tennis, Real MMA Fighting, horse and greyhound racing, along with lotto and keno games content.

Netent Mega Fortune Pays Euro 4.9 million - #NetEnt progressive slot Mega Fortune has delivered another instant millionaire, this one an anonymous Norwegian online punter wagering on the Betsson.com website.

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