More on the DraftKings Saga

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October 19th, 2015
Back More on the DraftKings Saga

A major investor in DraftKings, Kraft Group president Jonathan Kraft, says that the company is open to regulation of the industry.

Kraft Group president Jonathan Kraft, who is the owner of NFL team the New England Patriots, said, “I think both [DraftKings and rival FanDuel] companies ... are both willing, and I think they welcome the oversight,” he said. “And what I've read of both companies' CEOs, they've said everything should be transparent, and we're open to regulation, which is probably the right next step. But I think fantasy sports is pretty much a part of mainstream culture now in our country, and I think it's a nice element of what we have, and I think it should be regulated as well.”

With the legality of DraftKings' business model in question, FanDuel CEO Nigel Eccles said that his company will be meeting with regulators in the US.

DraftKings CEO Jason Robins told The Boston Globe that although not necessary, the company would be "...open to, and accepting of, regulations put on us.”

In related news, Nevada banned unlicensed DFS operators last week resulting in FanDuel's move to restrict residents of the state from accessing its products but DraftKings proceeded to accept Nevada players in a move meant to rebel against the Nevada Gaming Control Board order.

According to a DraftKings spokesperson, the company made exceptions for certain players “Because our game is nuanced in the fact that we allow late swaps, we allowed players who had already entered games on Thursday to be able to continue their full experience with the product until games close and are paid out on Monday night, regardless of their location.”

The spokesperson also noted DraftKings' willingness to comply with the order despite having an opposing opinion.

“We notified all Nevada customers of the issue and requested that they withdraw all funds and close their accounts,” said the spokesperson. “We also implemented blocking mechanisms for Nevada residents from creating new accounts, depositing money or playing new games.”

A.G. Burnett, chairman of the Nevada Gaming Control Board, is aware of DraftKings' position and said that the agency is keeping a close eye on the situation.

“We have been and will continue to test the DFS operators' websites and apps to determine if they've disengaged from Nevada or not,” Burnett said. “Failure to disengage can constitute a crime; we will work with our counsel on what are the next steps forward, should that be the case.”

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