IAG DECEMBER 2016 WEB - page 40

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asiangaming
December2016
40
“Since the startof theyear, eight states
havepassed legislationgiving thegreen
light forDFS tooperatewithin theirborders
withahandful ofothers currentlymulling
over similarmoves.”
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states. Since thestartof the year, eight states
havepassed legislationgiving thegreen light
for DFS to operate within their borders with
a handful of others currently mulling over
similarmoves.
But progress has been slower than
hoped, with FanDuel recently forced to
lay off 60 employees to help reduce costs.
The merger with DraftKings would provide
a much bigger combined war chest for the
battles that lie ahead.
The good news is that DFS isn’t losing
any of its appeal amongplayers.
Ina researchpaperpublishedby theUK’s
Juniper Research just a few weeks ago, the
market for DFS is set to surge over the next
few years, fromUS$2.6billionnow toUS$5.3
billion in 2021. Aside from the likelihood of
more US states passing legislation, new
markets have recently begun to emerge
withDraftKings launching in theUK in early
2016 and strong signs in Latin America and
Australia. Asia and Europe loom as the next
hugeopportunities.
“Currently North America dominates
the industry with US regulatory loopholes
denoting the activity a ‘game of skill’, rather
than gambling,” Juniper’s research paper
explains. “Nonetheless, with several smaller
players in operation globally and an initial
foray into the UK by the industry leaders,
West Europe will become the next major
market over the coming five years.”
The paper also suggested that DFS
operators should focus more on attracting
casual players to increase transactions
and alleviate concerns over liquidity – a
problem that has plagued the online poker
industry in recent years thanks to theactions
of disgraced site Full Tilt – which was
subsequently swallowedby PokerStars.
The
proposed
merger
between
DraftKings and FanDuel remains subject to
federal approval anda likely reviewunderUS
anti-trust laws. If approved, it is expected to
be complete by late 2017.
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