DraftKings Entering Sports Betting Market After Supreme Court Decision
DraftKings, a daily fantasy sports contest provider, says it will enter the sports betting market after the Supreme Court ruled Monday that the Professional and Amateur Sports Protection Act (PAPSA) that outlawed betting was unconstitutional, the company announced.
The court said that Congress could regulate gambling, but if they don't, then each individual state can decide on whether to allow betting.
For the Boston-based DraftKings, which said that the 1992 PAPSA law was "outdated," it would have to wait until Massachusetts legalizes sports betting.
"Our mission has always been to bring fans closer to the sports they love and now, thanks to the wisdom of the Supreme Court, DraftKings will be able to harness our proven technology to provide our customers with innovative online sports betting products,” Jason Robins, CEO and co-founder of DraftKings said in a statement. “This ruling gives us the ability to further diversify our product offerings and build on our unique capacity to drive fan engagement.”
The company said it has been preparing for more than a year to get its sports betting platform for mobile off the ground, adding it is working with state regulators to apply for operating licenses in states that have passed laws authorizing sports betting.
DraftKings estimated it has nearly 10 million customers playing their daily fantasy games.
"States are now free to allow their residents to place mobile sports bets with licensed, trusted companies based in the U.S. and that pay taxes here," Robins said.
