When watching a sporting event lately, it seems more airtime is given to promoting fantasy games than the actual game itself.
Numbers released by iSpot.TV show DraftKings was the top advertising spender last week, pumping more than $16 million into national spots. That’s more than Warner Bros., AT&T, Universal Pictures, Verizon and Geico. FanDuel wasn’t far behind, coming in seventh at just under $11 million.
The two sports gaming companies could be facing a harsh reality, though.
This from the Washington Post:
A ranking member of the House Energy and Commerce Committee requested a hearing about the relationship of fantasy sports to gambling, potentially the initial step in what is believed to be the first direct legal challenge to the exploding daily fantasy sports industry.
Rep. Frank Pallone (D-NJ) requested the hearing in the panel that oversees professional sports and gambling Monday afternoon. He wants to scrutinize the difference in gambling on sports and playing fantasy sports and to examine the close ties between professional sports leagues and teams and the fantasy sports industry, including daily fantasy titans DraftKings and FanDuel.
DraftKings and FanDuel have received hundreds of millions of dollars in venture capital, money the daily fantasy sites used to purchase advertisements. Sports television viewers last weekend were pummeled by commercials for the sites, which in part promoted Pallone’s request for a hearing.
Still, it looks like neither company is winning their fantasy league.
To answer all of you: No, FanDuel and DraftKings are not yet turning a profit— Darren Rovell (@darrenrovell) September 15, 2015