DraftKings new game ‘Showdown’ criticised

The introduction by DFS provider DraftKings of a new game has raised concerns regarding its proximity to illegal gambling.

Titled “Showdown”, the new game allows players to focus on  a single NFL playoff game, picking six athletes from two teams playing against each other in a real-life football game, and accruing fantasy points based on stats like touchdowns, receptions and yards passing, rushing or receiving.

Current federal legislation requires daily fantasy contests to be based on the performances of athletes in “multiple real-world” sporting events – not just single games – a stipulation that has motivated some experts to speak out against Showdown.

Among them is Keith Whyte, executive director of the National Council on Problem Gambling, who said this week that Showdown continues the industry trend of trying to get as close as possible to single game betting.  He added that the variant “further blurs the largely fictional line between daily fantasy sports and sports betting.”

DraftKings has responded by suggesting that federal law only applies if there’s an underlying violation of state gambling statutes first, and, so far, no state has objected to the competition.

Referring to the federal law, Anthony Cabot, the company’s outside legal counsel, said:

“This (federal) act is basically irrelevant. Everything defaults to state law now. If it’s not in violation of state law, then there’s no violation of the federal act.”

Cabot pointed out that DraftKings has offered contests for other one-off events like NASCAR races and golf tournaments since 2015, without any complaints from regulators.

Daniel Etna, a New York sports lawyer, and Jay McDaniel, deputy director of the Mississippi Gaming Commission concurred, with Etna observing that Showdown appears to comply with most if not all new state laws approved in recent years to legalise and regulate daily fantasy sports.

The New York Gaming Commission  determined in December that Showdown was legal in state law because it’s based off how individual players perform in the game, and not the “score, point spread or team’s performance”.

In general, regulators appear to have a policy of not requiring a review of every competition devised by DFS operators, although they would investigate and respond to any complaints.

DraftKing’s arch rival FanDuel appears to be looking at similar competition formats, disclosing recently that it has big plans for the next football season’s Super Bowl ( a major single-game event) and other sports.

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