With almost two dozen US states now engaged in the debate over the legalization of daily fantasy sports (DFS), many fans are finding themselves drowning in the sea of information.
That’s why Chris Grove of Narus Advisors offers three key points that DFS fans need to watch out for during active discussions of lawmakers, regulators, or law enforcement officials.
First, Grove said sports betting fans must be vigilant on where the legislation of DFS is heading and how the measure is being framed. He cited the states of Virginia and Indiana as examples, where the definition of DFS in the twin bills seems to allow a broader class activity than the products offered by DFS operators Draftkings and Fanduel.
“How that actually plays out in the market and how policy makers, lawmakers and federal government respond is the first thing to watch,” Grove told CalvinAyre.com.
The case concerning the Professional and Amateur Sports Protection Act (PASPA) in the Third Circuit court is also one of the few developments in the DFS that the people should watch out, according to Grove.
“I think you will also want to watch the PASPA, and how this new legislative efforts with the DFS in the state level intersect with PASPA,” he said.
Sports fans should also keep track on which way the US leagues will go, Grove said, since “they really do control the levers of power in this situation.”
“We are seeing the liberalization of the attitude in the NBA, a little bit but less so with the NHL, and then the NFL obviously remains the most conflicted about gambling. But watching about their public signals and how their public positions change is probably a good indicator,” Grove said.
Despite the web of legal intricacies enveloping the industry, Grove is convinced that eSports will bring lots of opportunities to the U.S., particularly on the event side of the business.
“We are talking about a city that has five arenas when usually a major metropolitan area would have one or two. We are talking about a city that is adding tens of thousands of square feet of convention space every year they need to be filled up on a regular basis. ESports events are great, they are relatively agnostic, they can be dropped in into a number of venues, and they fit in a number of sizes,” he said.