DraftKings Forgoes DFS in Oregon for Potential Exclusive Rights to Sports Betting Operations

If there were any doubt about the importance of sports betting to U.S. bookmaker DraftKings, that doubt has been removed.

For close to a decade, DraftKings has occupied a position as the top Daily Fantasy Sports (DFS) provider in the world. After working so hard for so many years to establish that position and a fine reputation, one would think they would do whatever was necessary to protect their primary business model. It turns out the company recognizes there is something more important in the U.S. sports betting world, betting on sports.

There was a time not too far in the past when DraftKings was being forced to consider excluding residents from Connecticut from having access to its DFS platform. As amazing as that was, the company was actually giving that all due consideration in exchange for the opportunity to be one of the top sports betting operators in Connecticut. That was until they were able to finally reach an accord with the state’s gambling regulators. The final agreement gave them the ability to offer both types of sports betting access as long as it was done through a partnership with the state’s lottery or one of its Tribal groups. Note: DraftKings ended up landing a deal with the Mashantucket Pequot Tribe.

Once again, DraftKings was put in a position where they needed to choose between being a DFS provider or a sports betting operator. For now, it looks like they chose to go with being a sports betting operator. Where? In the state of Oregon.

Currently, sports betting in Oregon is only legal and has been for quite a few years through the state lottery’s SportsBoard app. In the last couple of months, DraftKings has been negotiating with the state's gambling regulator to replace the SportsBoard app with its very own sports betting platform, both retail and online.

At issue were doubts about the legality of Oregon residents playing DFS online. With those doubts lingering in the background, DraftKings removed the obstacle before it became an obstacle. They did this by issuing a notice to all Oregon residents that would no longer have access to the DraftKings’ DFS platform. Clearly, the move was made to curry favor from the state's gambling regulator.

In its note to current customers in Oregon, the company made the following statement regarding its position on DFS and sports betting in Oregon:

“While we respectfully disagree, we value our relationship with the Oregon lottery and share a common commitment to best serve Oregonians who are passionate about sports betting. “As such, DraftKings will stop paid fantasy sports contests in Oregon at 7 am PST on July 26, 2021, so that those discussions can continue.”

Assuming DraftKings is successful in this endeavor, that would leave Fanduel as the only relevant DFS provider operating for the benefit of Oregon residents. While the legality of DFS betting in the state is still in question, Fanduel has made clear they plan on continuing to offer its services until they are made to cease.