Daily Fantasy Sports Betting Giant DraftKings Terminates Sponsorship Deals with eSports Teams

Here are the latest breaking news regarding daily fantasy sports betting. Based on a report published at the Daily Dot, DraftKings end their sponsorship deals with various eSports teams.

Although DraftKings offered sponsorships to many teams in the field of daily fantasy sports betting, the patronage has ended. Fantasy sports in the US are quite popular, and the particular companies got hit by the news must be more than curious about the background reason of DrafKings’ decision.

According to the online betting news, “The DraftKings logo has been removed from each teams’ jerseys and websites”. CompLexityGaming, SK Gaming, CLOUD9, Counter Logic Gaming, Team SoloMid, and Mousesports are the six affected operators left without DraftKing’s sponsorship.

Reasons and Comments Over the Terminated Sponsorship Deals

The reason of the sudden pause is not clear yet, however the Daily Dot report has a possible solution. As they explained, “sources suggest DraftKings has been hit with unexpected financial issues after running into legal problems in several states.”

On the one hand, the problem being is that many US states –  including Nevada, Illnois, Iowa and others –  labelled daily fantasy sports betting as illegal gambling. This significant loss is understandably can lead to money problems.

On the other hand, according to the Boston Globe DraftKings raised $70 million from investors, which gives the impression of a controversy is hidden somewhere between the lines.

DraftKings’ spokesperson said in his announcement the relationships with the companies were all rewarding. They are still determined to offer contests to DFS companies and keep searching for other possibilities.

Daily Fantasy Sports Betting Companies and Other Victims

However, the victim of the unexpected situation is not only daily fantasy sports betting. According to sources close to DraftKings, the DFS company also dropped several advertising campaigns in relation to some NFL and NBA events. The reason is mainly financial (again); they would like to decrease the expenses of the advertising budget. It seems rumors about DraftKing’s money problems are still true.

DraftKings were welcomed at eSports betting market last year, just like other great competitors, as the Startups Alphadraft, Unikrn, and Vulcun.

If you want to learn how to bet on fantasy sports, read our eSports betting guide to know all the fantasy sports betting tips and hints before embarking on an daily fantasy sports betting adventure.