FanDuel CEO Warns: Expect More Laws and No IPO

[sg_popup id=”4″][/sg_popup]Fan DuelAfter spending the last two months promising to make you rich, the chief executive of FanDuel admits his daily fantasy sports site may have gone a bit overboard.  “We definitely got creative burnout pretty darn quickly,” said Nigel Eccles in an wide-ranging interview with Bloomberg on Tuesday, in which he also touched on regulation, taking the company public, and the potential for a merger with competitor DraftKings. “People, when they saw the ad for the 87th time, they thought, I’m sick of this,” he said.

The ad blitz was more than annoying. It was expensive — FanDuel has spent more than $100 million on advertisements since August — and raised the profile of daily fantasy sports at the same time that questions began to surface about the basic fairness of the games. New Jersey Congressman Frank Pallone cited the advertisements in mid-September during his call for a hearing on the legality of daily fantasy sports. Soon the question of regulation was a national topic of discussion, even inspiring a question in the most recent Republican presidential debate.

Eccles acknowledges that regulation is on the way — and even says its a good idea. Together with DraftKings and the Fantasy Sports Trade Association, FanDuel recently hired a lobbyist to push for favorable state legislation. Eccles thinks that a handful of states will pass consumer protection laws in the next year. While regulation could come with an additional tax burden, “that’s not come up as much as we’ve thought,” Eccles said. “I assumed it would have been high on the agenda.”

More at Bloomberg

Related Stories from This Week in Gambling:

  • Fantasy Sports Pay $12 Million for “Deceptive Ads” in New York The country’s two leading online daily fantasy sports companies are paying out big — in fines to the state. FanDuel and DraftKings on Tuesday agreed to pay $6 million each to settle lawsuits from Attorney General Eric Schneiderman alleging they engaged in false and deceptive advertising […]
  • FanDuel’s World Fantasy Baseball Championship Hosted by Bo Jackson Bo Jackson will host FanDuel’s World Fantasy Baseball Championship at the Cosmopolitan on Aug. 21 and 22. The former baseball and football star also will host FanDuel’s first ever Home Run Derby on Aug. 21 at Big League Dreams, where he’ll take batting practice and give advice to the 90 […]
  • Fantasy Sports Now Legal in Kansas Kansas State Governor Sam Brownback has signed a bill that will legalise fantasy sports gaming activities in the US state. Having received heavy support from the public and government figures, Bill HB 2155 was passed in the state senate by a vote of 37-1. Signed by Governor […]