The Coalition for Fantasy Sports (CFS) has welcomed Splash Sports as its fifth member.
In the Coalition, Splash joins Betr, Dabble, PrizePicks, and Underdog Fantasy, which defines itself as the premier voice in protecting innovation and consumers in the fantasy sports industry.
Regulatory Pressure on Fantasy Sports Grows, Mirroring Crypto Betting Struggles
The Daily Fantasy Sports industry faces significant regulatory scrutiny from regulators, drawing similarities to crypto sports betting. Recently, regulators in multiple states have ordered DFS companies to cease and desist, especially where they are offering ‘pick’em’ style contests in which a player competes versus the house rather than in a player versus player format.
“With the growing challenges of state-by-state regulation, CFS is ensuring that fantasy sports operators, players, and policymakers have a unified voice,” explained the entity in a release. It continued: “The coalition remains at the forefront of legislative battles, market expansion, and responsible gaming efforts.”
Splash also runs competitions that would be classed as ‘Pick’em’ contests in many states and subsequently face regulatory scrutiny. The Colorado-headquartered company, together with the other members of the Coalition, will advocate for informed policy decisions and “consumer-centric” regulations that help the industry grow and innovate.
The Daily Fantasy Sports industry continues to struggle with regulators who want to curb its activity. Kentucky and Maryland are among the states seeking to clarify the legal status of fantasy contests, whereas Illinois Senator Bill Cunningham has proposed SB 2145, which seeks to further regulate the industry.
CFS Executive Director JT Foley commented: “Fantasy sports continues to evolve, and with the addition of industry leaders like Splash Sports, our coalition is stronger than ever. Together, we will continue to advocate for smart policies that allow fantasy sports to thrive while prioritizing consumer protection and innovation.”
“Splash Sports is excited to join forces with the Coalition for Fantasy Sports, an organization that shares our passion for responsible and innovative fantasy sports gaming,” added Joel Milton, co-founder and CEO of Splash Sports. “Together, we will work to protect and grow the fantasy sports industry, ensuring that consumers have access to a safe, enjoyable, and innovative experience.”
DraftKings Could Embrace Crypto
Before the repeal of PASPA, which led states to legalize and regulate sports betting, daily fantasy sports were predominantly run by DraftKings and FanDuel. Both companies have since pivoted to a traditional sportsbook model.
FanDuel and DraftKings have since become significant market leaders in the United States online sports betting market, having once solely operated DFS products.
Recently, Jason Robins, CEO and Co-Founder of DraftKings, conceded that the company is considering accepting crypto as a payment method. He emphasized that it may take time, as regulators do not currently understand the product.
“It’s also getting regulators comfortable with it because regulators typically are cautious around crypto in the states. Obviously, at a federal level, there’s a lot of pro-crypto deregulation, I think, coming,” he said on the company’s fourth-quarter earnings call.
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