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[ElectricBlanketFire]

Link here.

DraftKings and FanDuel are so short of cash, according to the two people familiar with the negotiations, that they have asked Mr. Schneiderman’s office if they can pay the final settlement in installments, and they have conceded that they are having difficulty meeting their day-to-day obligations.

Within the past three weeks, the New York-based FanDuel has laid off more than 60 people, and both companies have acknowledged that they are months behind in their payments to vendors, especially to the array of public relations and lobbying firms that they have employed across the nation to persuade individual state legislatures to legalize daily fantasy games — the most critical component of rebuilding their business.

 

[Skel1ingt0n]

Use code BANKRUPT to play.


That's B-A-N-K-R-U-P-T for a free play.

 

[Squalor]

2-1 FanDuel goes under first.

 

[whitemex88]

Use code BANKRUPT to play.

Goddamn. +1

 

[Slayven]

I wander how much they spent on commercials.

 

[DrBo42]

So what's the cause here? People finally figuring out that betting on fantasy drafts online is a waste of money or a better competitor?

 

[FallingEdge]

Damn. What a difference a year makes.

 

[Squalor]

I wander how much they spent on commercials.

DraftKings spent $80 million on commercials in 2015 alone.

 

[SmokeMaxX]

So what's the cause here? People finally figuring out that betting on fantasy drafts online is a waste of money or a better competitor?

DIdn't they get hit by a lawsuit?

 

[Messi]

DraftKings spent $80 million on commercials in 2015 alone.

 

[Slayven]

DraftKings spent $80 million on commercials in 2015 alone.

I said goddamn, no wonder they were everywhere

 

[Arc]

I guess Draft Kings blew through all of Mr. Kraft's money on annoying commercials.

 

[Velcro Fly]

fantasy sports is a whole lot of luck

you are honestly better off going to a casino with your money

 

[BatDan]

DraftKings spent $80 million on commercials in 2015 alone.

Fuuuuuuuuuuuuuck...
Now that's poor spending.

fantasy sports is a whole lot of luck

you are honestly better off going to a casino with your money

There was a segment on Last Week Tonight that showed that to succeed at Fantasy Sports, you need to be a genius engineer that also won big at professional poker

EDIT: Sorry, statisticians not engineers.

 

[Brinbe]

Idiots. Thank Christ we won't see those stupid ads everywhere anymore.

 

[ScottSullivan]

Sounds like they thought they would just keep getting new users and new revenue forever, growth for the sake of growth and now they are reaping the rewards

 

[sunshine and gasoline]

DraftKings spent $80 million on commercials in 2015 alone.

No wonder I was seeing so much advertising about DraftKings.

 

[Dishwalla]

Good riddance to both of them.

 

[Arc]

Use code BANKRUPT to play.


That's B-A-N-K-R-U-P-T for a free play.

Stole this for a Facebook post I made to my sporto buddy. Thanks.

 

[CassidyIzABeast]

First CSGOLotto fell and now DraftKings and FanDuel are next.

 

[Arc]

Sounds like they thought they would just keep getting new users and new revenue forever, growth for the sake of growth and now they are reaping the rewards

Start up growth mentality. Doesn't work if they don't retain players.

 

[jstripes]

fantasy sports is a whole lot of luck

you are honestly better off going to a casino with your money

There's a whole lot of schmoes who think they know everything about sports.

 

[reKon]

Use code BANKRUPT to play.


That's B-A-N-K-R-U-P-T for a free play.

whew

 

[Squalor]

I said goddamn, no wonder they were everywhere

Fuuuuuuuuuuuuuck...
Now that's poor spending.

No wonder I was seeing so much advertising about DraftKings.

They had 25,000 unique airings in 2015.

During the football season, they averaged one new airing every two minutes.

 

[shira]

The - "It's not gambling" gambling

 

[Werd]

I'm sure they made mistakes, but they were also outright banned from operating pay games in a decent number of states including Texas. That probably didn't help, plus the expense of lobbying to return/stay legal elsewhere.

 

[BigJonsson]

The commercials were annoying
The partnerships with pro leagues were disgusting

 

[KingBroly]

Fuuuuuuuuuuuuuck...
Now that's poor spending.

No, it's poor planning in thinking that increased viewership wouldn't lead to more scrutiny

 

[FelixOrion]

Time for the merger

DraftDuel

 

[Aurongel]

They flew too close to the sun.

 

[Squalor]

They flew too close to the sun.

It's their final fantasy … season.

 

[Armaros]

No, it's poor planning in thinking that increased viewership wouldn't lead to more scrutiny

They ad spammed themselves into bankruptcy.

 

[Deleted member 284]

Time for the merger

DraftDuel

Don't be surprised if this happen in short order

 

[Squirrel Killer]

Well, I guess that proves daily fantasy isn't gambling, because you have to be dumber than a box of rocks to lose money running a gambling business.

 

[Squalor]

Well, I guess that proves daily fantasy isn't gambling, because you have to be dumber than a box of rocks to lose money running a gambling business.

Not sure if Donald Trump reference…

 

[FelixOrion]

It's their final fantasy … season.

Leaked footage of the laughing dudebro in their next ad: https://m.youtube.com/watch?v=H47ow4_Cmk0

 

[Sanjuro]

Martha Coakley needs to eat tho.

 

[border]

How in God's name do you lose so hard running a gambling business with such low overhead?

 

[Box of Kittens]

So much for these "disruptive innovators." I've enjoyed not seeing their commercials every minute any more.

 

[ryutaro's mama]

Use code BANKRUPT to play.


That's B-A-N-K-R-U-P-T for a free play.

Perfect first post.

 

[TheGameshark]

Good riddance

 

[FelixOrion]

DraftKings spent $80 million on commercials in 2015 alone.

Employees $200k
Data Center $150k
Office Rent $800k
Commercials $80 million
Utilitied $150k
someone who is good at the economy please help me budget this. my family is dying

 

[Cipherr]

Damn you spent real money on those sites? I thought they were advertising spending fantasy dollars on fantasy game outcomes

How is that not gambling? Thought that was illegal online... Guess not.

 

[Kyou]

Employees $200k
Data Center $150k
Office Rent $800k
Commercials $80 million
Utilitied $150k
someone who is good at the economy please help me budget this. my family is dying

Buy less commercials

 

[ISOM]

How in God's name do you lose so hard running a gambling business with such low overhead?

Did you not see the $80 million in advertising post in this thread? There's your answer.

 

[FelixOrion]

Buy less commercials

no

 

[Draxal]

So what's the cause here? People finally figuring out that betting on fantasy drafts online is a waste of money or a better competitor?

There was a loophole in the 2006 internet gambling laws that both sites used to justify their business.

That loophole didn't hold up to scrutiny by some Attorney Generals, and they spent too much money on lobbying and lost anyway.

Damn you spent real money on those sites? I thought they were advertising spending fantasy dollars on fantasy game outcomes

How is that not gambling? Thought that was illegal online... Guess not.

Roto/Rotissiere fantasy sports are not illegal online; because they are "games of skill." Fan Duel and Draft Kings were claming these were games of skill instead of luck.

 

[mcfrank]

Time for the merger

DraftDuel

Didn't they already merge?

 

[OricWindstar]

Can't wait to hear Bill Burr's reaction to this.

 

[Draxal]

Didn't they already merge?

From the article.

In June, Bloomberg reported that the two companies were exploring a merger, and Drape writes that they will merge “as soon as possible.” It seems that a merger and a large infusion of cash—together the two companies have already gone through numerous venture capital rounds and raised over a billion dollars—is the only way they will stave off insolvency.