If you’ve watched any sporting event (or any televised production, really) in the past six months, you know about DraftKings and Fan Duel.
For those living under a rock, DraftKings and Fan Duel are online daily fantasy sports sites that have basically taken over the commercial airwaves with their super-aggressive advertising. DraftKings, after entering an ad agreement with ESPN to “integrate” the brand with ESPN content, has had its logo plastered everywhere. The two sites have spent a combined $205.9 million on ads alone.
In more recent news, the two are gearing up for an intense legal battle with New York state Attorney General Eric Schneiderman after he stated that the activities on the sites were considered gambling, and therefore illegal in the state.
In light of this, DraftKings has asked their partner companies to let them pull back a bit. For instance, DraftKings asked their NBA partners to defer about 10 percent of its committed payments, and asked for their logos and banners in several arenas to be shown less on television. Fan Duel has also decreased its spending on TV ads, although they declined to comment.
Are the two sites lowering their profile in the face of a harsh legal showdown? Or maybe attempting to conserve cash for the costly legal fees? What would be the best course of action for the two sites to take?