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DraftKings will no longer allow Oregon Bettors to enter its Daily Fantasy Sports (DFS) contests, news the Boston-based sports betting operator recently delivered via email to its Beaver State DFS customers.
The reason?
It mainly stems from the gray legal area that allows for DFS to exist in many states and, according to that note DraftKings just sent out, “some questions have been raised about whether paid fantasy sports contests are permissible under Oregon law.”
The email went on to say that DraftKings will stop paid fantasy contests in Oregon starting at 7 am PST on Monday, July 26, 2021, news that came as a surprise to fans of this widespread version of sports betting.
Give some credit to DraftKings for being upfront with why they felt the sudden need to make this move – they are in talks with the Oregon Lottery over possibly taking over their lucrative betting platform.
In the state of Oregon, it is possible to place a sports bet, but to do it punters must go through the application called ScoreBoard that is currently owned by the state lottery.
Except now DraftKings has made clear that this could soon change, telling its DFS customers in that same email:
DraftKings has been in discussions with the Oregon Lottery to potentially transition its Scoreboard app to the DraftKings platform.
The popular sports betting operator says though it “respectfully disagrees” with the idea that paid fantasy sports contests are somehow illegal in the state of Oregon, they will discontinue DFS in the state in order to prevent any questions regarding their ongoing business in the state.
Needless to say, FanDuel, their main competitor, is overjoyed.
As expected, FanDuel responded to the news by saying in a recent Tweet that it will continue to operate its DFS platform in Oregon.
Hey there, thanks for reaching out! Yes, we will continue to operate our DFS platform in Oregon as normal.
— FD Customer Support (@FanDuel_Support) July 24, 2021
FanDuel, an American gambling company founded in 2009 and based out of New York City, is more than happy to corner the DFS market in Oregon and grab a bigger piece of the $335 million total annual revenue pie that currently exists for the daily fantasy sports industry.
Adjusting DFS plans to make room for potential sports betting revenue is nothing new for DraftKings, something they had to also do in Connecticut where they were forced to partner with existing tribal casinos or the lottery if they wanted to continue operating fantasy sports contests in that state.
While plenty of Oregon bettors are upset with this move, DraftKings seems to be making a short-term sacrifice to receive a long-term potential gain, a point that they made perfectly clear in that email to their customers.
We value our relationship with the Oregon lottery and share a common commitment to best serve Oregonians who are passionate about sports betting.
And if DraftKings can, indeed, take over Oregon’s betting platform, their DFS gamble should more than pay off.
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