The top dogs of DFS are broke.

[UK2K]

The daily fantasy sports companies DraftKings and FanDuel are nearing a settlement agreement with New York’s attorney general over claims that they engaged in false advertising when they spent nearly a half-billion dollars blitzing the national airwaves with commercials last year, according to two people familiar with the discussions who spoke on the condition of anonymity because negotiations were continuing.

The agreement with the attorney general, Eric T. Schneiderman, was expected to cost the companies a total of $8 million to $12 million, according to the two people. It would also require the companies to acknowledge the findings of Mr. Schneiderman’s investigation into fraudulent practices and perhaps require them to institute even stronger consumer protections than those adopted in August when Gov. Andrew M. Cuomo made the games legal in New York.

Justine Sacco, a spokeswoman for FanDuel, said, “While we cannot comment on the details, we can confirm that we have been in ongoing settlement negotiations with the New York attorney general’s office. They have been tough but fair, and we hope to reach an acceptable resolution.”

A spokesman for DraftKings did not respond to a request for comment on Sunday.

DraftKings and FanDuel are so short of cash, according to the two people familiar with the negotiations, that they have asked Mr. Schneiderman’s office if they can pay the final settlement in installments, and they have conceded that they are having difficulty meeting their day-to-day obligations.

Within the past three weeks, the New York-based FanDuel has laid off more than 60 people, and both companies have acknowledged that they are months behind in their payments to vendors, especially to the array of public relations and lobbying firms that they have employed across the nation to persuade individual state legislatures to legalize daily fantasy games — the most critical component of rebuilding their business.

http://www.nytimes.com/2016/10/24/sp...tate.html?_r=0

How do you **** up a business where you, literally, do nothing but facilitate gambling for others?

I get casinos going under... they have rent and property taxes and maintenance...

But DFS? With them raking 20% of the buy-in's every week, it's a wonder where that money is going.

[highwhey]

They say the lack of cashflow is the number one reason why businesses fail. The article points out pretty well that their expenses in marketing have been detrimental. I'm assuming they didn't receive a good return for every dollar invested in marketing, but kept on with the advertising.

[bdreason]

How many people are still playing these daily fantasy games? All of my friends just bet on games.

[poido123]

Perhaps they had their own drug/gambling habits?




For the record, betting on NFL is brutal.

[UK2K]

How many people are still playing these daily fantasy games? All of my friends just bet on games.

I've played every week for the last three years.

[fiddy]

Anyone surprised? My stomach cringed every time i saw their damn ads, like 5 times in a single break. FOH, im no surprised they're going broke considering the amount they invested in advertising. Aren't those companies backed by some serious names? If they bankrupt, it won't be pretty.

[KyrieTheFuture]

Not shocking with their ad expenses

[Nanners]

i think those annoying ass commercials actually influenced my decision to quit playing dfs.

[UK2K]

DraftKings, FanDuel agree to merge

The companies agreed that Robins will be CEO of the new company and FanDuel CEO Nigel Eccles will be chairman.

The companies said the transaction is expected to close in 2017.
The companies reached an agreement in March with New York Attorney General Eric Schneiderman to stop running paid contests in the state.

Schneiderman had sought to shut down the companies' operations, arguing their contests relied on chance and were illegal under state law. DraftKings and FanDuel had stressed their contests require skill.

[fiddy]

New name or they are going to stick to one of the two names?

[dunksby]

Good, every damn gambling den should go under.

[DeuceWallaces]

They made some colossal mistakes in their marketing and had an unfounded assumption of no prosecution.

It's crazy how they ****ed it up so bad.

[NumberSix]

Rigged.

[warriorfan]

Because it's a scam and they have had numerous scandals released showing so