FanDuel Joins Forces with 15 NFL Clubs.
It appears that FanDuel and DraftKings are engaged in a heated competition to secure bigger and more prominent partners for their daily fantasy sports platforms.
Recently, FanDuel emerged as the victor, striking a deal with nearly half of the NFL teams, allowing them to display signage in stadiums, run radio and digital ads, and collaborate on promotions.
This arrangement, though, does not come without restrictions. FanDuel is not authorized to use team logos in advertising or on their website, nor will they be classified as an official sponsor of either the NFL or any specific team.
These stipulations resemble those imposed when NFL franchises enter into agreements with casinos or other gambling establishments. As Brian McCarthy, NFL spokesperson, explained to USA Today Sports, "A team sponsor is a company that can use the team logo or say 'We are the official (company) of the team.' That is not the case here. These companies are not team sponsors...teams have advertising arrangements from various companies, but that doesn't make every one of them a team sponsor."
Interestingly, FanDuel's major competitor, DraftKings, only recently signed an upgraded partnership with Major League Baseball. This deal has led to increased exposure and integration for the daily fantasy site on MLB teams, MLB Network, and MLB.com.
The growing number of partnerships between professional sports leagues and the daily fantasy industry is reflective of the industry's tremendous growth and the leagues' growing comfort with daily fantasy sports. Though these games undoubtedly involve gambling – players are wagering money on uncertain outcomes – they are exempt from online gambling laws, and daily fantasy contests fall within this exemption. While some US states outlaw these games, major daily fantasy sites generally prohibit participation from residents of a few states (Washington, Arizona, Iowa, Montana, and Louisiana).
Some of the teams that have agreed to partner with FanDuel include the Green Bay Packers, New York Jets, Indianapolis Colts, Detroit Lions, and San Diego Chargers. Craig Benzel, the Packers' VP of Sales and Business Development, explained that the NFL's alliance with FanDuel aligns with the league's cautious approach. "You've seen this in the NFL," said Benzel, "You've seen it with distilled spirits and casinos. The league doesn't want to rush into anything."
Mitch Gershman, the Washington Redskins' Chief Marketing Officer, believes that this partnership will help the team attract new fans. "We also know that [daily fantasy] players skew a little younger," Gershman said. "We are broadening the fan base to have interest in NFL football."
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