Case Study

FanDuel

Challenge

FanDuel is the leading daily fantasy sports provider with the sole mission of making sports more exciting. Founded in 2009, FanDuel has redefined fantasy sports, offering a multitude of one-day game options for NFL, NBA, MLB, and NHL. Fantasy sports has rapidly become an enormous industry and continues to grow. Daily games are projected to grow 41% annually, reaching $14.4 billion in 2020. Since launching in July 2009, FanDuel has grown to over 1 million paid active users. However, because daily fantasy sports is an entirely new idea, many states are unsure how to regulate it.

Approach

Tusk actively led FanDuel’s efforts to pass consumer protection legislation which would formally legalize the product and create a path to exit. Tusk began working for FanDuel in October 2015, and we were able to successfully pass legislation in 16 states. To support the legislative strategy, Tusk led an industry-wide mobilization effort to galvanize support among committed fantasy sports players and partners in response to regulatory interference and efforts to curtail the company’s growth. Tusk helped develop and direct the strategy to manage and stem FanDuel’s media, customer, investor, partner, and regulatory issues regarding the company itself as well as the fantasy sports gaming industry as a whole. Additionally, Tusk directed efforts to enforce internal controls and safeguards. Tusk created FanDuel’s Advisory Board, led by former U.S. Attorney Mike Garcia, to validate the integrity of FanDuel’s platform and provide ongoing compliance recommendations.

16

States passed legislation
to protect fantasy sports

Results

Tusk was able to help FanDuel pass legislation in 16 states and started to plant the seed for many other states moving forward. One of the biggest victories was passing legislation in New York State. The NY legislation was a big win for FanDuel as one of the country’s largest markets for sports fans and paving the way for similar legislation in other states that ban daily fantasy sports.