INDUSTRY FORUM

  • Immaculate

    Virginia Governor signs DFS bill.

    Legal Sports Report
    http://www.legalsportsreport.com/8873/virginia-governor-signs-dfs-bill/

    Wallach Legal
    https://twitter.com/WALLACHLEGAL

  • Cameron

    RG Co-Founder

    • 2014 FanDuel NFL Survivor Champion

    • 2016 RG Season Long Champion: NFL

  • Jason10

    Great! The worries are over for me now! Hope other states follow along.

  • jimfred82

    • Blogger of the Month

    This is great! Hopefully this is the beginning of a positive trend!

  • jimmyrad

    This is exciting, hopefully the first of many and the end of the spectre of a world w/o DFS.

    Brutal for the NFBC guys though, really ****ing brutal.

  • Olhausen

    This is awesome. Unfortunately I keep seeing a trend where barely anyone posts on topics that are good news for dfs. If it were deemed illegal we’d be at 5 pages at least by now.

  • monds6

    • 172

      RG Overall Ranking

    • x2

      2015 DraftKings FCFWC Finalist

    • 2013 DraftStreet DSFC Finalist

    100% Agreed. Now I am biased as I am in Virginia. I am sure there is a perception that VA is a smaller state so it is not that big of a deal until some of the larger states join in. I have no idea what VA’s market share is based on other states, but it does have 5 of the top 12 counties in the US in median income. So their population may be smaller but their is certainly financial incentives for the industry to have VA pro DFS.

  • jarredsc7

    I live in Virginia and definitely am excited by this. I actually emailed the governors office last night to thank him for using common sense, instead of political agenda, and passing this.

  • mjordantmac

    • 2016 FanDuel NBA Playboy Mansion Finalist

    Good stuff!! Let’s keep it going!

  • kbarnhill7523

    • 678

      RG Overall Ranking

    • 2018 FanDuel WFFC Finalist

    • x2

      2017 FanDuel WFBBC Finalist

    My retirement plan is intact!

  • Mattg45

    Congrats fellas, great win for the dfs industry, hopefully more states follow.

  • stalkers1770

    This could be horrible for the smaller sites. Each site must pay a $50,000 annual fee. If other states sign the same type of DFS bills there is no way the smaller sites will be able to pay $50K for each state per year

    http://www.nevermanagealone.com/2016/3/7/11177074/fantasy-contests-act-virginia-poison-daily-fantasy-sports-draftkings

  • emac

    Yes, assume 40 states adopt this… $50k x 40 = $2 Million

    2. That the initial fee for an application for registration in accordance with this act shall be $50,000. Thereafter, the fee for an application for registration shall be set by the Department of Agriculture and Consumer Services in accordance with § 59.1-564 of the Code of Virginia, as created by this act.

    While the annual fee is not yet determined, the initial fee is pretty high unless the DFS market is just going to be become DK/FD and maybe one other site.

    Now, if the $50k was an initial fee and then from that point it was based on revenue or something that would essentially “right-size” for large and small sites alike, that would be better. (Full Disclosure, I live in Virginia)

    On the flip-side, it is not hard to imagine a big state like California saying “Well, we are much larger than Virginia and really need the money so it is $1M per year to play in our state.”

    While it is nice to have some sort of resolution/definitive answer, this is not over by any stretch of the imagination.

    Heck it is even in play that a dozen states do something like this, the other say no and we have a pool of gamers that is well under critical mass.

  • Taterchipdip

    @Olhausen said...

    This is awesome. Unfortunately I keep seeing a trend where barely anyone posts on topics that are good news for dfs. If it were deemed illegal we’d be at 5 pages at least by now.

    Very very true comment. A+ +1

  • bzsports4

    I really hope they have a plan for smaller sites to be able to operate as well.

  • cedric19

    Wait, so if every state did this a site would have to cough up 50k x 50 = 2.5 mill? Wow

    If that’s the application fee, I wonder what the yearly license would be. Hello 25% rake, and goodbye DFS

  • cAUmberlandtiger8

    @emac said...

    Yes, assume 40 states adopt this… $50k x 40 = $2 Million

    2. That the initial fee for an application for registration in accordance with this act shall be $50,000. Thereafter, the fee for an application for registration shall be set by the Department of Agriculture and Consumer Services in accordance with § 59.1-564 of the Code of Virginia, as created by this act.

    While the annual fee is not yet determined, the initial fee is pretty high unless the DFS market is just going to be become DK/FD and maybe one other site.

    Now, if the $50k was an initial fee and then from that point it was based on revenue or something that would essentially “right-size” for large and small sites alike, that would be better. (Full Disclosure, I live in Virginia)

    On the flip-side, it is not hard to imagine a big state like California saying “Well, we are much larger than Virginia and really need the money so it is $1M per year to play in our state.”

    While it is nice to have some sort of resolution/definitive answer, this is not over by any stretch of the imagination.

    Heck it is even in play that a dozen states do something like this, the other say no and we have a pool of gamers that is well under critical mass.

    This is absolutely spot on. Politicians are unable to grasp the big picture when it come to DFS. They forget to take into account the sites have to make money as well. After its all said and done the sites that are still standing will have a rake of 20%. People who scream to the roof tops for regulation also pound their fists that the rake is way to high.

  • TheRyanFlaherty

    Glad to live in a state that doesn’t have a heavy casino presence…
    Funny how common sense can prevail when there doesn’t seem to be as many ulterior agendas.

  • Immaculate

    @stalkers1770 said...

    This could be horrible for the smaller sites. Each site must pay a $50,000 annual fee. If other states sign the same type of DFS bills there is no way the smaller sites will be able to pay $50K for each state per year

    http://www.nevermanagealone.com/2016/3/7/11177074/fantasy-contests-act-virginia-poison-daily-fantasy-sports-draftkings

    Don’t think it is $50,000 annually. Apparently, $50,000 initially per company with successive years to be determined.

    § 59.1-564. Department to adjust fees; certain transfer of money collected prohibited.

    B. Following the close of any biennium, when the account for the Department maintained under this chapter shows expenses allocated to it for the past biennium to be more than 10 percent greater or less than moneys collected on behalf of the Department, it shall revise the fees levied by it for registration and renewal thereof so that the fees are sufficient but not excessive to cover expenses.

    § 59.1-570.

    2. That the initial fee for an application for registration in accordance with this act shall be $50,000. Thereafter, the fee for an application for registration shall be set by the Department of Agriculture and Consumer Services in accordance with § 59.1-564 of the Code of Virginia, as created by this act.

  • meerkatmreow

    @cedric19 said...

    Wait, so if every state did this a site would have to cough up 50k x 50 = 2.5 mill? Wow

    If that’s the application fee, I wonder what the yearly license would be. Hello 25% rake, and goodbye DFS

    Well if you go off the numbers here: http://www.legalsportsreport.com/3832/fanduel-or-draftkings/

    “With one week to go, FanDuel has posted $39.4 million in net revenue across all its games for the entire NFL season.”

    2 million would be around 5% of Fanduel’s NFL only revenue

    “Counting just its GPPs, DraftKings has brought in $23.8 million in net revenue.”

    8.4% of DK’s NFL GPP only revenue

    Or to put it another way:

    “Through Dec. 14, DraftKings and FanDuel spent a combined $300 million on television ads, according to iSpot and the Wall Street Journal.”

    So the combined 4 million is 1.3% of the combined ad budget. I think we can accept a couple less ads if it means legality and regulation fees.

    Most of the language I’ve seen in these bills makes provisions for smaller sites to have the fees capped at some % of revenue or set by a regulating body.

  • JMToWin

    • x2

      2014 DraftKings FBWC Finalist

    • 2016 FanDuel WFBC Finalist

    Congrats, Virginians!

  • Unico10

    • 740

      RG Overall Ranking

    @Immaculate said...

    2. That the initial fee for an application for registration in accordance with this act shall be $50,000. Thereafter, the fee for an application for registration shall be set by the Department of Agriculture and Consumer Services in accordance with § 59.1-564 of the Code of Virginia, as created by this act.

    How much is a liquor license??

    $50,000 doesn’t seem excessive for a State like Virginia

  • deejones49

    Great news

  • TheRyanFlaherty

    You’d think the 50k would be advertising in-and-of-itself to some extent.

    The idea that it is clearly legal, has some common sense regulations and is supported by the state, should erase some of the negative DFS stigma and work towards bringing back casual players in a way no self-produced commercial could.

  • emac

    @Unico10 said...

    $50,000 doesn’t seem excessive for a State like Virginia

    It is not, if the goal is only to have 2-3 sites represented.

    $50k x 40 states = $2M and a lot of the smaller sites don’t have more than $1M all told for everything they are trying to do.

    For example $50k for a large Seattle based coffee company to operate in Virginia is going to be an entirely different magnitude than Cheery Chris’ Cup o Coffee Cart needing to pay the same fee to set up outside the petting zoo.

  • MrFantasy

    Regarding the smaller sites, FantasyAces has already said they don’t plan to apply for a Virginia license. These smaller sites are going to need to act fast and possibly look into a merger or something if they plan on sticking around in a regulated market.

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