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ONLINE FANTASY SPORTS BUSINESS BOOMING

Legislative carve-outs for fantasy sports betting line have sparked a lucrative business
 
Good weekend reading came from Associated Press this week in an article on the growing popularity of online fantasy sports gambling, a pastime sanctioned in all but 6 states by US law despite the banning of other internet forms of gambling.
 
In fantasy sports, participants pick a team of real-life players in baseball, football or other sports and compete based on their real-life statistics. Such competitions typically last a season, but more websites are springing up that offer prize money for teams that last only one night.
 
The AP report notes that rivalries among friends or co-workers are building new nightly online betting into a hit for the $800 million fantasy sports industry, with over a dozen websites managing daily fantasy sports wagers, earning a percentage for doing so.
 
Paul Charchian, president of the Fantasy Sports Trade Association, which represents 120 companies, revealed to the AP that commissions amount to $35 per player per month at one of the largest new sites, FanDuel.com, and that nearly 7 million Americans and Canadians were already playing fantasy sports for money by 2008, with the total expected to soar.
 
One of the market pioneers, Fanball.com, launched a daily game in late 2008 called Snapdraft, and quickly attracted players; another was FantasySportsLive.com, which launched daily games with gambling in mid-2007.
 
Charchian observed that fantasy sports betting is not considered sports gambling because gamblers can't wager on scores or team wins or losses, and they can't create fantasy teams that mirror real-world teams. These are what-if teams, where individual performance is the most important factor.
 
Newer arrivals in the sector include FanDuel, which launched in the spring with $1.8 million in venture capital funding and now averages 20,000 users per month who have placed more than 65,000 bets, according to CEO Nigel Eccles.
 
Eccles said the site's use increased 10-fold with the start of the NFL season this month.
 
"Whereas season-long drafts have already had their single bite ... our daily draft model enables us and our partners to continue to add players throughout the NFL season," he said. FanDuel has expanded into Canada and now has deals with seven major U.S. newspapers to attract players. The two businesses evenly split the commission FanDuel collects on each bet.
 
In 2008, an Ipsos survey showed that fantasy sports gamblers were spending an average of $134 per year on their leagues as the daily gambling sites were just starting to take off. The research firm found that of the 27 million Americans and nearly 3 million Canadians who play fantasy sports each year, about three-quarters do it just for bragging rights.
 
Media owners like the fantasy sports concept because it gives their readers comething new and different, Yoni Greenbaum of the Philadelphia Inquirer and Philadelphia Daily News, told AP. "It's a niche that fits into a larger strategy," he said, adding that the hope is that links like this will get readers to make Philly.com part of their daily routine; already some players have complained that they can't bet enough each night, he said.

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Gambling News :

Interwetten 2016 Earnings Results - Privately-owned online sports betting operator Interwetten delivered robust full year results for the 2016 fiscal period, in which the company has almost achieved doubling its revenues over the past four years, success it attributes to its in-house developed platform

EU Online Gambling Tax Harmoney Dead - Tax expert says European Court of Justice Attorney General's opinion on UK-Gibraltar litigation signals that EU courts are happy for individual member states to impose their own laws on online gambling.

Jack Lam Facing Big Fines in the Philippines - It's going to be costly for Macau online gambling and junket tycoon Jack Lam to return to the Philippines following his rather hurried departure last year with allegations of economic sabotage, bribery and tax evasion swirling around him.

Walter Merricks Term As Gambing Commissioner Extended - The UK Government has extended Walter Merricks’ term as Commissioner of the Gambling Commission for a further year, ending December 31, 2017.

Loot’enKhamun Pays $3.8 Million Jackpot - A London-based construction worker’s year got off to a great start when he hit the Loot’enKhamun jackpot at bwin casino.

PlaySugarHouse To Carry Konami Content - Content provider Konami will provide its Gypsy Fire and Fortune Stacks slot games to Rush Street Interactive-operated PlaySugarHouse.com on an exclusive basis in the New Jersey real-money online and mobile wagering market.

ITF TERMINATES BETWAY SPONSORSHIP DEAL - The International Tennis Federation (ITF) has reportedly terminated Betway’s three-year sponsorship partnership as an extension to their anti-match fixing and sports integrity policy.

GSA To Launch European division - The expansion enables the GSA to better focus on the regional needs of its members outside of North America and underscores its recognition and commitment to growing European membership.

Paddy Power Trading Update - Company prevails despite adverse sports and US election results; Trump success cost the group GBP 5 million, whilst punter successes took another GBP 40 million in Q4-2016.

Tabcorp SunBets project - The details were revealed this week in an IT News article quoting Tabcorp's chief information officer, Kim Wenn, who described the SunBets project as Tabcorp's biggest global venture yet.

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