Daily fantasy sports sites DraftKings and FanDuel have voluntarily ceased college sports betting indefinitely in all U.S. states as part of a deal with the NCAA. The action takes effect following the conclusion of the NCAA March Madness tournament on April 4th, according to a report from ESPN today.
The decision should have little effect on either company’s business. For FanDuel, which alongside DraftKings controls around 90 percent of the daily fantasy market, college sports make up only about 3 percent of revenue. College sports nets DraftKings 10 to 20 times less revenue than bets on NFL games. Yet by agreeing to ban college betting, both companies may see a boost of goodwill in more contentious legal battlegrounds like New York, where they’ve ceased operating in hopes the state will legalize the activity.
Read the rest of this post on the original site »
This article originally appeared on Recode.net.
Will you support Vox’s explanatory journalism?
Most news outlets make their money through advertising or subscriptions. But when it comes to what we’re trying to do at Vox, there are a couple of big issues with relying on ads and subscriptions to keep the lights on:
First, advertising dollars go up and down with the economy. We often only know a few months out what our advertising revenue will be, which makes it hard to plan ahead.
Second, we’re not in the subscriptions business. Vox is here to help everyone understand the complex issues shaping the world — not just the people who can afford to pay for a subscription. We believe that’s an important part of building a more equal society. And we can’t do that if we have a paywall.
So even though advertising is still our biggest source of revenue, we also seek grants and reader support. (And no matter how our work is funded, we have strict guidelines on editorial independence.)
If you also believe that everyone deserves access to trusted high-quality information, will you make a gift to Vox today? Any amount helps.
Yes, I'll give $5/month
Yes, I'll give $5/month
We accept credit card, Apple Pay, and
Google Pay. You can also contribute via