Bad News is Good PR for Fantasy Sports Giants

As noted yesterday, two of the largest fantasy sports services, FanDuel and DraftKings, have found themselves in hot water. This has led to a class action complaint, with both companies accused of “misleading and false advertisements of providing fair play.”

While this is bad enough news in its own right, it comes on the heels of regulatory scrutiny related to employees with access to private information playing fantasy sports on other sites.

Not Slowing Down Growth

Despite the fact that this is a PR disaster for both companies, it has yet to slow down growth. In fact, U.K. research company SuperLobby shared data showing that the controversy is actually working in favor of FanDuel and DraftKings.

Fortune broke down the data points, noting the following:

“In total entries, DraftKings received 4.1 million entries, while FanDuel got 3.4 million—increases of 10 percent and 6 percent, respectively. For entry fees, DraftKings saw $25 million, compared to $22.4 million the week before, and FanDuel brought in $20.6 million compared to $19.7 million the week before. While more people entered DraftKings contests than FanDuel contests, and spent more money on DraftKings than on FanDuel, it is FanDuel that had the bigger gain in money brought in vs. prize money paid out—but it also cut its most lucrative contest prize pool from $6 million to $5 million. (DraftKings kept its largest contest at $7 million.)”

Even though both companies are walking a slippery slope, it hasn’t slowed growth. The number of entries and entry fees continue to increase, proving that the majority of people don’t care what is going on in terms of investigations or lawsuits. All they care about is the chance to take home a big chunk of the “fantasy sports pie.”

Do you remember the old saying “any PR is good PR?” In the case of FanDuel and DraftKings, this definitely holds true. Recent trouble for both companies has led to greater media coverage. Subsequently, this “free advertising” is paying off.

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