While also calling for regulation on Wednesday, NBA commissioner Adam Silver said that his league was standing by its partnership with FanDuel and continuing its support of daily fantasy sports.
Speaking with ESPN’s Outside The Lines, Silver said the NBA is “not considering withdrawing or backing off our relationship with the industry. It’s something that we’re monitoring very closely. And it’s something that we’re deeply engaged in on the broader subject of daily fantasy-slash-sports betting.”
It’s the first time a representative of any of the major sports leagues has spoken on the topic since daily fantasy became engulfed in controversy earlier this month, and it’s a bit of good news for the reeling industry and should be welcomed as such, even if it’s not precisely what some want to hear.
“There should be a regulatory framework; there should be increased transparency for consumers,” Silver told ESPN. “I think it would ultimately aid the industry. In fact, I think we’re seeing the marketplace impacted, because there’s not a clear regulatory framework right now.”
While the leading daily fantasy sites might have preferred to continue operating with minimal oversight or to form their own regulatory body, it appears the time for that has long since passed. While leading sites DraftKings and FanDuel have shown great skill and foresight in building a wildly popular product, they’ve been less forward-thinking when it comes to protecting themselves and their industry.
The best option available to DFS now might be to pursue the most favorable “regulatory framework” it can get, and the support of its big money partners will be instrumental in that.
More and more daily fantasy operators seem to agree. In a statement to ESPN, FanDuel seemed, grudgingly, amenable to the idea:
“FanDuel and our partners believe some regulation may be warranted and want to work with lawmakers to ensure fans continue to have access to all the fantasy games they love.”
FanDuel and other operators would be wise to cooperate in every feasible way, because fighting against oversight looks like a losing proposition.
Signs have been pointing toward a regulated environment for months now. The booming growth of the industry began to catch the attention of astute lawmakers last year, and though the scrutiny has increased in the wake of the “DK leak” controversy, legal analyses were already gathering steam in states across the country. The scandal and subsequent (yet unrelated) ruling of the Nevada Gaming Control Board that DFS is gambling only accelerated the inevitable.
Now daily fantasy is gearing up for a possible fight for its life. FanDuel is pushing a petition. Industry insiders are trying to kickstart a grassroots effort. While mobilizing the player base is a worthwhile effort, more power and influence will likely be found with the NBA and daily fantasy’s similar backers.
Analysts have believed that the partnerships fostered by DraftKings and FanDuel—including equity deals with the major media corporations, the NBA, MLB and NHL—would insulate daily fantasy from a repeat of poker’s Black Friday shutdown. With multiple legal inquiries now underway at both the state and federal level, that theory may be tested soon.
The possible outcomes are virtually limitless. But with daily fantasy’s foes seemingly outnumbering its allies, the only sure bet at this point is that DFS is better off with Silver in its corner than without, and to the end of fostering more support, acquiescence works better than resistance.