Meet the players, old and new
On Wednesday, May 18 2018, the Pennsylvania Gaming Control Board received four new applications for partial gaming licenses that allow operators to host gambling games dealing with daily fantasy sports (DFS). These four new operators will augment the previous round of licensees announced May 2, 2018 giving Pennsylvania players a total of ten options for 100% legal daily fantasy draft operators.
The four new applicants are*:
- Yahoo Fantasy Sports LLC
- Fantasy Draft LLC
- Sportshub Technologies LLC (DBA Fanball, DCM Sports, MFL 10’s, National Fantasy Championship)
- Full Time Fantasy Sports LLC (DBA scoutfantasysports.com)
These new operators join the previous six who are:
- Fanduel PA LLC (DBA Fanduel)
- Crown PA DFS Inc. (DBA DraftKings**)
- Boom Shakalaka Inc. (DBA Boom Fantasy)
- StarStreet LLC (DBA Draft)
- JDAD LLC (DBA FFPC – Fantasy Football Players Championship)
It is legal for players within the borders of the state of Pennsylvania to submit entry fees for daily fantasy sports contests with the above ten operators. This will not essentially change anything for PA players (who have had access to daily fantasy sports for several years) except to expand the pool of operators and to formalize the regulation and tax structure. All DFS players must be at least 18 years of age unless (paradoxically) they are at a PA casino, in which case they must be at least 21 years of age.
How large is the Pennsylvania DFS market?
Although exact numbers are not known due to PA DFS activity occurring in “gray market” conditions until recently, we can assume Pennsylvania’s impact on the national DFS market is large. Pennsylvania is the nation’s 6th most populous state, boasting around 13 million residents. Professional sports teams are abundant in the state and fans are notoriously proud of their teams. Current estimates of Pennsylvania’s share of the DFS market is around 4 percent of all contest entry fees or around $80 million. These gross receipts come from a pool of more than 65,000 active DFS players in the state and generate more than $7.5 million in revenue for DFS operators.
With the new entrants into the field and the new legal condition of daily fantasy sports gambling in Pennsylvania, these numbers are only going to increase.
*DBA = Doing Business As
** Fanduel and DraftKings vastly dominate the DFS market, holding over 90 percent market share.