Esports cool person Jacob Wolf is reporting that DraftKings have withdrawn their sponsorship campaigns from all esports teams, as the company seems to have hit a pretty hard wall losing revenue as various US state governments launch investigation after investigation into their gambling practices.
I don’t see how a situation like this really is a change from the trend of major fantasy sports companies–especially those that purely operated in the esports and virtual item space–is a surprise to anybody.
Fantasy sports companies that operate in real world currency should be acting as if keeping their businesses in the United States is more of a temporary measure, since the only relief they’ll find would be a legislative win in Congress that will overturn various laws that prohibit online gambling. Why these companies haven’t decided to move their headquarters and corporate offices outside across one of the two oceans is a mystery to me.
Of course, if you’ve listened to my first podcast, you’d know that I’m probably not a fan of these financial fantasies that schemes like these perpetuate. My simple reaction: this is a pure win-win for esports.
A win-win: one less shady esports sponsor, one less gambling influence on the audience https://t.co/n2Aa81LEWe
— Brad Carr (@bcarr) February 25, 2016