Among the many speculations over communications giant Verizon‘s .8 billion acquisition of Yahoo, is how it will affect the internet company’s fantasy sports product.
While Yahoo has ventured into live-streaming of sports – the site live streamed an NFL game between the Buffalo Bills and the Jacksonville Jaguars last season – its fantasy sports offerings seem likely to be a lot less lucrative.
Yahoo reportedly brings in about $200 million per year in annual revenue from advertising revenue around its traditional, season-long fantasy sports products. But it’s daily fantasy sports products bring in only about $5 million in revenue.
DFS sites like DraftKings and FanDuel, however, bring in billions of revenue from entry fees. That has led many analysts to conclude that Verizon will likely cut the Yahoo DFS product.
However, as the daily fantasy sports industry fights legal battle from state to state over new regulations, other analysts point out that Yahoo’s DFS products already employ some consumer protections that many states are seeking such as identifying highly skilled players and placing bet limits on games.
That could prove to be a marketing plus for the company as the DFS industry evolves. Verizon could also use its massive database of customers to push its DFS products.
With the NFL season approaching, expect a clearer picture of Verizon’s plans to emerge.
In other DFS news, a federal judge has denied the attempt by daily fantasy sports site DraftKings to move a Tennessee lawsuit to federal court.
The judge, Harry S. Mattice, Jr., ruled in favor of plaintiff Erica Miller’s motion to continue her case in a local Tennessee court.
The case stems from Miller seeking to recover money allegedly lost by her husband. The suit alleges that DraftKings operated “a daily and weekly fantasy sports website that amounts to an unlawful gambling enterprise and/or lottery” under Tennessee state law.
The plaintiff claimed damages of $46,400. Miller filed her lawsuit against DraftKings on April 1, 2016, in Chancery Court of Greene County, Tennessee. The judge ruled that the claim fell below the $75,000 needed for a move to federal court. DraftKings had argued that any punitive rewards could have put the case over the thresholds.
Also, Oulala.com, a European DFS site announced it will unveil a new platform for players in Australia and India at the beginning of the new football season. The expansion is a partnership between OulalaGames and Cardinal House Group, the Australian registered provider of online social gaming products and real money gambling platforms.
