DraftKings & FanDuel Pour $20M into Florida Sports Betting Battle
The news has been spilling out over the past few days over the details of DraftKings’ and FanDuel’s contribution to the Florida Education Champions political committee. It was announced last month that the two major sportsbook providers teamed up in order to push legal sports betting in Florida. However, we now know that each operator dropped $10 million into this committee last month, according to the state Division of Elections website, which is responsible for transparency on contributions.
This is a huge chunk of change for two of the biggest, if not the biggest, online sports betting providers in the United States. However, when looking at the potential of the Florida betting market, arguably the second or third largest possible state when it comes to sports betting in America, it makes sense that FanDuel and DraftKings would team up to fight for legalization.
What is Going on With Florida Legal Sports Betting
In 2021 there were two fronts that pursued sports betting. The first was through legislation that would allow sportsbooks to be licensed through the Florida government and offer online sports betting. The legislation never came together, and DraftKings and FanDuel are attempting to reinvigorate this effort.
The second way sports betting is attempting to launch is through a gaming compact with the Seminole Tribe. The Governor’s office in Florida signed off on a new gaming compact that allows for both retail and online sports betting exclusively through the Seminole Tribe. This gaming compact is still facing federal approval and a lawsuit.
Even if the gaming compact goes through Federal approval, there is no guarantee that the Seminole Tribe will work with DraftKings and FanDuel to allow the duo to launch in the state. Therefore, you can see why DraftKings and FanDuel are fighting for legislation that will enable them direct access to the market.
DraftKings and FanDuel
DraftKings and FanDuel teaming up is an interesting look as the two have been main competitors since their inception. Both operators started out as daily fantasy sports platforms and have been the two largest DFS platforms in the United States for years. Then, when sports betting was legalized in 2018, both rushed to offer the best online sports betting experience possible. FanDuel and DraftKings continue to be two of the biggest titans in the iGaming scene and arch-rivals.
However, the Florida betting market is a mutually beneficial state as it is so large both platforms could cash in on a large enough piece of the pie. The two much rather see sports betting opened to them and their rival rather than be closed off only for the Seminole Tribe or non-existent.
The $20 million dollar contribution shows that both of these giants in the industry are willing to do what it takes to push legal sports betting in the state. Florida legal sports betting will continue to be a large battleground.