DraftKings, FanDuel Ad Blitz Drawing More Scrutiny to DFS Industry

You’ve seen the ads.  How could you not have?  Even if you don’t watch Football, DraftKings and FanDuel advertisements are popping up all over the boob tube including on 24-hour cable news networks like CNN and HLN (if you can still call the later news).

But during the Sunday games, these commercials absolutely dominate and they are drawing the attention of some who question the existence of such Daily Fantasy contests.  Are they legal?

Some have drawn comparisons between Daily Fantasy Sports and illegal gambling.

The Editorial Board of the New York Times writes Monday:

The companies behind these commercials say that their games are harmless and perfectly legal. But it is hard to believe that this is what Congress had in mind when it exempted fantasy sports from a law that effectively outlawed Internet gambling in 2006.

They add:

The allure of profits from gambling clouds otherwise rational minds. Giving people more ways to bet on the outcomes of sports is sure to threaten the integrity of sports and create more gambling addicts, especially among young people who are already more likely to engage in risky behaviors.

The New York Times is one of many media outlets questioning the integrity of this explosive new industry, mostly as a result of the current ad blitz.

This all came full circle in recent days with some gaffes that made headlines only within the confines of the professional DFS player forms like those found at RotoGrinders.

DraftKings came under fire after an employee of the firm posted player lineup data showing how often individual players were selected prior to the games being played. 

“If you knew beforehand which players would be most used, in the major sports you can build +EV (positive expected value) cash game and GPP lineups based almost solely on that knowledge,” industry analyst Ed Miller told Legal Sports Report.

Making matters worse, that same DraftKings employee went on to win a $350,000 FanDuel contest, leaving many in the community scratching their heads.

Then on Sunday, FanDuel had a $100 entry fee 6K guaranteed tournament advertised as a single entry event start. Shortly after roster lock some DFS players who entered this tournament noticed that others somehow had multiple entries into this tournament.

Both companies are fighting lawsuits in the state of Florida whereby the plaintiffs claim the bonuses advertised were a form of “bail and switch”.

“(The) Problem with no regulation is: no transparency. So players can't tell how bad these issues are, or who's accountable,” tweeted Chris Grove of Legal Sports Report.

Industry analyst Joe Brennan, Jr. tweeted:

“You can't run ads saying "Billion...Millions...free $200" & not expect that gov't won't step in (they watch TV, too).”

The ad blitz itself is showing signs of irritating the average sports enthusiast, some of whom cast doubt on these claims of instant riches.

Seattle Fox News local morning anchor Bill Wixey is one of many who tweeted about he endless stream of DraftKings and FanDuel commercials.

I want to see the #DraftKings/ #FanDuelNFL ad featuring the guy that lost his rent money playing #FantasyFootball. #RealityTV

Another Twitter user, Scott Jackson tweeted:

I would easily pay a premium to not have to watch fan duel or draft kings commercials when I watch a football game. #fanduel #draftkings

Perhaps the biggest problem with such ad saturation: Too many players participating, making the odds of actually winning akin to that of Power Ball.

This tweet speaks volumes:

I'm currently in 1800th place out of 400,000! #draftkings @DraftKings

- Aaron Goldstein, Gambling911.com