At the end of last week, the web-based fantasy sports operator in the DFS industry FanDuel unexpectedly revealed that it is to leave the UK market after spending almost a year there. The company’s UK brand announced the exit, explaining that local operations are set to be closed so that the daily fantasy sports operator could focus on its primary website aimed at American customers.
The company’s exodus from the UK market is not expected to have a negative impact on FanDuel’s operations on the territory of the US and its customers there.
FanDuel, which is currently considered the second-largest daily fantasy sports operator on a global scale, has sent e-mails informing its UK users of the decision, along with a short message published on the local website of the company. The operator hinted that the exit may be only temporary and explained that customers who still had funds in their accounts would see their money credited back to the bank card that they had used most recently.
The leading DFS company spent less than a year in the UK gambling market after originally entering it in the middle of 2016, after being granted with an operating license by the UK Gambling Commission (UKGC), the local gaming regulatory authority.
Back in 2015, FanDuel was reported to be ready to expand its global DFS market presence after applying for an operation license to the UK Gambling Commission. The company confirmed its plans to go global at the time, confirming its license application. At the time, FanDuel already had its international offices located in Edinburgh, which made the step towards offering its operations across the European Union a pretty logical step.
Up to date, DFS operators who would like to offer their services in the UK need to apply for a sports betting license to the UK Gambling Commission in order to confirm their readiness to comply to the regulatory authority’s rules.
The increased interest towards fantasy sports has provoked the local gambling watchdog to tighten the regulatory regime in the country. Less than two weeks ago, the UK Gambling Commission issued a special warning aimed at organisers of fantasy football leagues, urging them to make sure they fully comply with local gambling law. The warning of the UK gambling regulatory watchdog was issued right before the start of the new football season in terms of pool betting licenses.
Currently, some fantasy companies that operate in the UK market are not obliged to hold a special pool betting license, in case that they do not offer fantasy sports as part of their business.
As mentioned above, FanDuel officially entered the UK market in the middle of 2016. Its push in the country’s betting industry was followed by DraftKings as well as by the UK DFS website of Yahoo. Both companies are to keep their operations in the country for the time being.
The announcement of FanDuel’s exit of the local sports betting and DFS market comes only a fortnight before the official start of the English Premier League. As mentioned above, the company did not close the door forever, saying that it could be back in the future, offering even more games to local customers.
- Author
Olivia Cole
