CEO DATELINE - Fantasy sports industry feud leads to new association
CEO DATELINE - Fantasy sports industry feud leads to new association
- March 30, 2016 |
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Walt Williams
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Several small fantasy sports businesses have launched a new nonprofit association as alternative to the industry's for-profit trade group, which they say represents the interests of only the two largest companies.
The Small Business Fantasy Sports Trade Association was formed in large part to oppose a proposed law in New York State establishing a $500,000 fee to operate fantasy sports contests in the state. The trade group's founding members believe the fee is the latest attempt by the Fantasy Sports Trade Association to shut down small operators on behalf of the nation's two largest fantasy sports companies, DraftKings and FanFuel. Both companies support the proposed fee.
"We will take this fight across the country on behalf of all of the fans," SBFSTA spokesman Alex Kaganovsky said. "We will not stand by while the two major players in the industry, which have direct financial ties with three of the major professional sports leagues, are permitted their own duopoly in New York."
FTSA is a Chicago-based association formed in 1999 to represent the industry, which has grown in popularity since then. Nearly 57 million people in the U.S. and Canada played fantasy sports in 2015, with the average player spending $465 annually, according to the trade group. More than 300 members are listed on the association's website.
SBFSTA, on the other hand, is starting out with more than 30 members and is registered as a non-profit 501(c)(6). The group said Virginia and Indiana have already passed laws closing out all but the largest fantasy sports operators. It is drawing a line in the sand in New York because that state is "likely to set the standard for how other states will attempt to regulate fantasy sports moving forward."
FTSA has not issued any statements about the new association as of Wednesday. http://prn.to/21THt5u
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