We noted in a late April DFT thread that DraftKings and NASCAR appeared on the verge of an agreement, as the sport began appearing on the site’s drop-down menu.
On Thursday, the partnership became official.
In a joint release, NASCAR announced a three-year deal that will give DraftKings an exclusive license to develop fantasy-related games. DraftKings will use official statistics provided by NASCAR to offer its users real-time scoring and statistics as well as updated information on races and drivers.
“We’re thrilled to partner with NASCAR to bring auto racing enthusiasts across the country an unmatched fan experience,” said Jason Robins, CEO and Co-founder of DraftKings. “We’re always exploring new avenues for innovation and stats from NASCAR Digital Media’s direct data feed that we will provide to our players is another example of DraftKings’ commitment to incorporating new technologies for the benefit of the fan.”
The offering will no doubt be a hit among NASCAR’s intense and loyal fanbase, but the partnership has already raised eyebrows around the industry as some are questioning the legality of offering a sport that’s based on a single “event.”
Daily Fantasy Sports 101, in a post that has since been taken down, previously offered the following explanation for why NASCAR wasn’t being offered by DFS sites:
The problem is currently that the way NASCAR works, the one day contests that the daily fantasy sports sites are known for, and that has a booming industry legally growing around may not be 100% legal when it comes to a weekend NASCAR race.
The challenge is that there needs to be more than 1 sporting event going to draw from in order to offer a legal real money fantasy contest. It’s the same reason there are not any real money fantasy Superbowl contests going on …
Legal Sports Report, which covers the industry from a legal standpoint, said auto racing and NASCAR were “perhaps the sketchiest legally” of the possible DFS sports.
Seven months ago, in a forum thread at RotoGrinders, FanDuel CEO Nigel Eccles cited legal concerns (likely the UIGEA) as a reason why his company had avoided offering NASCAR games.
He called the legal status “very negative.”
It’s highly unlikely that DraftKings would make this move without considering all legal ramifications. Also, other single-event sports—such as golf—are offered by multiple sites and are considered legal, albeit on a technicality. (Each tournament round is counted as an individual event.)
Whether NASCAR should be considered legal or not, DraftKings appears willing to fight for their right to offer it.
In the meantime, NASCAR players, it’s time to start your engines.