ROTOQL Welcome to
RotoQL’s CEO & Founder, Justin Park, introduces us to Daily Fantasy Sports and explains what PASPA’s departure means for the future.
D “ Thanks
to the US Supreme Court
ruling the gambling space in America will never be the same again
”
aily fantasy sports have faced notable legal challenges over the years, centred on whether the practise constitutes gambling. Generally, DFS has been viewed as legal and a game of skill. This is mainly because of the
Unlawful Internet Gambling and Enforcement Act of 2006 (UIGEA). The UIGEA restricts some versions of online poker and other games, before making an exception for fantasy sports games which it viewed more as skill than luck. Another differentiation is that DFS does not link cash prizes to the amount of fees necessary to enter like Poker. In-depth knowledge of professional players and teams, as
well as salary cap management means well-versed fantasy players who have done due diligence are better positioned to excel. Legality is ultimately dictated by individual states based on local gambling laws and rulings. These past decisions have led to two main companies dominating the DFS space, FanDuel and DraftKings, who between them have 95% of the market. The Supreme Court ruling may well mean more competition for DFS as sports- bettors are a similar target audience.
PASPA
The US ruling deemed the Professional and Amateur Sports Protection Act (PASPA) unlawful by a 7-2 majority decision. It did so claiming PASPA tells states what to do in violation of the US Constitution’s “anti-commandeering principle,” which limits the federal government’s ability to interfere with state legislative activity. This duel began with New Jersey and Governor of New
Jersey Chris Christie’s limited authorisation of sports gambling in 2014. Pro leagues, the NCAA, federal district and federal appeals courts each dismissed Christie’s dream of sports betting in the state. New Jersey can now implement sports betting legislation
and several other states will follow suit. Those states who have passed betting laws include Pennsylvania, West Virginia and Mississippi. Legal frameworks to regulate sports betting is currently being played out in about 18 state legislatures. It represents a huge opportunity for operators in the US and for those across the Atlantic in the UK. Sports betting has long been established in the UK and the landscape has changed immeasurably for the better. Bettors are generally very well educated, but demanding customers and will not tolerate poor user experiences. UK sports betting has matured and there is a plethora of
markets for users to explore. Bets can be placed on the number of throw-ins, shots on target and number of goals in a ten-minute segment of the game. These diverse markets
54 JULY 2018
will likely start to be introduced in America and it’ll be interesting to watch developments as the pro leagues own and have access to the player data which dictate the stats. Successful iGaming market expansions revolve around the
product quality as well as understanding the nuances of local trends. This is already apparent in New Jersey, where the Monmouth Park racetrack has made some noise in the media regarding its partnership with UK-facing bookmaker William Hill. Paddy Power Betfair are also considering merging its U.S. business with fantasy sports company FanDuel to target the U.S. sports betting market.
QL
RotoQL was created as a tool to make life easier for the daily fantasy sports player, being heralded as an all-in-one DFS tool to “make line-up building fast, efficient and stress free.” It launched in 2015 and specializes in generating data- driven line-ups in a very short amount of time, with an emphasis on helping create strategies that work for an individual’s own preferences and approach to DFS. RotoQL was co-founded by myself and Saahil Sud, with
help from some influential investors. If the name Saahil Sud does not ring a bell, maybe the name Maxdalury will. Saahil (formerly known by the screen name Maxdalury) is one of the top-ranked daily fantasy sports players in the world. In April a $3M seed round was announced to bring total funds raised to $4.7M. Before becoming CEO of QL, I had previous successes in the online marketplace for quite some time. It started by founding the site VIdaao which specializes in video production and before that venture served as the Chief Operating Officer at APlus. Myself and Saahil bring expertise from opposite sides of the spectrum and, combined, make a great pairing when it comes to a DFS product.
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