By Anthony Caruso III | Publisher
According to LegalSportsReport.com, MLB and NBA are looking to sell their equity in DraftKings and FanDuel. There are questions about the future of daily fantasy.
While they plan to sell off their equity in the companies, ESPN’s Darren Rovell says the two sporting leagues will remain partners. The story says that MLB has been an investor in DraftKings since 2013.
They also signed a multi-year sponsorship agreement with DraftKings in 2015. They are also known as the “Official Daily Fantasy Game” of the MLB.
The NBA has had an ownership stake in FanDuel since 2014.
“This space is evolving and we saw the need to take a fresh look at the structure of our relationship,” NBA spokesman Mike Bass said. “FanDuel has been, and will remain, a great partner. We have simply modified some of the components of our partnership.”
MLB also sent a statement about daily fantasy to ESPN.
“While we have initiated discussions regarding potential changes to the structure of our relationship, we look forward to continuing our valued partnership with DraftKings,” MLB said in a statement. “MLB and DraftKings will continue to collaborate on innovative approaches to enhance the fan experience.”
Per LegalSportsReport.com, there are stricter regulations regarding daily fantasy in a lot of the U.S. states. There are several states, where legislation has failed or is still pending, according to the post.
While the NBA and the MLB want to pull their investments in daily fantasy, we have seen daily fantasy ads yanked before, as ESPN removed all of its DraftKings and FanDuel ads in 2016.