TG Talk - How central is a vibrant US market to the success of DFS internationally?

TG Talk - How central is a vibrant US market to the success of DFS internationally?

Wednesday, July 20, 2016 Posted by Andy McCarron
Does the DFS industry need a healthy US market to survive?

Following Delaware’s decision to put an end to real money DFS operations in the State, this week’s proposals put forward by the Maryland Comptroller, and with the legal turmoil surrounding the industry nationwide, we spoke to some industry experts to see what they had to see about what impact this will have on DFS globally.

Chris Grove, Legal Sports Report and Partner at Narius Advisors - Without a vibrant U.S. market, most DFS sites will struggle to build the kind of liquidity that has proven necessary to get a daily fantasy sports business to scale. That's not to say international success absent a strong U.S. base is impossible.

Knowing the international market and catering to the unique demands of non-U.S. markets will matter as well. But all other things being equal, I would expect an operator with a strong U.S. base to enjoy an advantage in, say, a European market, over a competing operator lacking that U.S. base.

Shergul Arshad, Mondogoal CEO - The flourishing of DFS in the USA is an important factor in selling the DFS concept worldwide – it garners publicity for the concept in new markets where international operators are looking to develop their business.

International DFS stands to be much more stable - living alongside sports betting and regulated by Gaming laws and licenses, DFS becomes the skill game solution for serious betters ("sharks") the same way serious cards players play poker over blackjack.

At Mondogoal we have built the largest DFS site in Europe by focusing on team partnerships and deals with online sports betting companies, most prominently Lottomatica and Sisal. We believe that international success for DFS will ultimately come by complementing and sitting side by side next to sports betting operators, not by wild advertising spends as seen in the US.

Valery Bollier, Oulala CEO - The US market has shown the way. It offered critical proof that the business model of our sector was valid and profitable, and by doing so it allowed us, the international DFS operators, to raise money and grow.

Without this “initial push”, the international market would not have been able to rise, so we are very grateful for this major help that we have benefitted from. However, the more we continue to grow, the less we will need the US market to lead the way. For instance, if you look at the success of Daily Fantasy Cricket in India, it is evident that the health of the American market has absolutely no more influence on it.

Oulala is currently the only DFS game in Europe that is based on real skill. This situation will soon undergo a rapid change as more serious actors have already begun to take up their own position in the European market. The BtoB positioning is also a key success factor for the international market. At Oulala, we have already signed a significant number of white label agreements with iGaming operators all over the world, including in Australasia and Africa, among others.

Manuel Concepción, Bantasy CEO - Except for spearheading the concept and popularising it, the vibrancy of the US market for DFS is irrelevant to the international market in my opinion. I believe it depends more on whether or not European fans are willing to adopt the DFS betting model as readily as the US has.  With the only other possible exception of legal hurdles as the US is presently experiencing in various states, there is little in the way to curb the exponential growth of DFS internationally.

How central is a vibrant US market to the success of DFS internationally?

DFS exploded in the US, but has since hit legal turmoil. Can the product survive in other markets without a vibrant US industry?

Yes, DFS is a strong product no matter what the market
48% (12 votes)
Only in other markets where online gambling is restricted
28% (7 votes)
No, the US gives DFS the backbone and the credibility it would otherwise lack
24% (6 votes)
Total votes: 25
Poll availability: 
Wednesday, July 20, 2016 to Friday, August 19, 2016

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