Inside Asian Gaming

inside asian gaming December 2016 40 “Since the start of the year, eight states have passed legislation giving the green light for DFS to operate within their borders with a handful of others currently mulling over similar moves.” iGaming Blue Pages iGaming in Depth states. Since the start of the year, eight states have passed legislation giving the green light for DFS to operate within their borders with a handful of others currently mulling over similar moves. 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 among players. In a research paper published by the UK’s Juniper Research just a few weeks ago, the market for DFS is set to surge over the next few years, from US$2.6 billion now to US$5.3 billion in 2021. Aside from the likelihood of more US states passing legislation, new markets have recently begun to emerge with DraftKings launching in the UK in early 2016 and strong signs in Latin America and Australia. Asia and Europe loom as the next huge opportunities. “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 the actions of disgraced site Full Tilt – which was subsequently swallowed by PokerStars. The proposed merger between DraftKings and FanDuel remains subject to federal approval and a likely review under US anti-trust laws. If approved, it is expected to be complete by late 2017.