NEW YORK: Major League Baseball and the National Basketball Association have begun discussions to divest their respective stakes in fantasy sports platforms, DraftKings and FanDuel, according to a ESPN report.
But both the leagues are keen to remain partners with the platforms though.
MLB had been an investor in DraftKings since 2013, and two years later, signed a multiyear sponsorship deal that made DraftKings the “official daily fantasy game” of MLB.
The NBA took an ownership stake in FanDuel in November 2014.
The financial details and the exit terms of the deal are yet unclear.
“This space is evolving and we saw the need to take a fresh look at the structure of our relationship,” NBA spokesman Mike Bass said. “FanDuel has been, and will remain, a great partner. We have simply modified some of the components of our partnership.”
In a statement to ESPN, MLB said, “While we have initiated discussions regarding potential changes to the structure of our relationship, we look forward to continuing our valued partnership with DraftKings. MLB and DraftKings will continue to collaborate on innovative approaches to enhance the fan experience.”
A FanDuel spokesperson said, “FanDuel and the NBA will remain close commercial partners.”
A DraftKings spokesperson said, “Major League Baseball was the first professional league to invest in DraftKings and their partnership over the last five years has been instrumental to our growth and success. Our ties to MLB are as strong as they have ever been.”
The reason behind wanting this change hasn’t been mentioned in the public domain yet. But it comes at a time when leagues and fantasy sports firms are considering potential changes in the American law, which could make sports betting legal in all other states and not just Nevada.
DraftKings and FanDuel have been keen to make a mark in the sports betting arena, so much so that DraftKings appointed a head of sportsbook to launch a sports betting vertical in February.
The MLB and NBA on the other hand are against sports betting and have been lobbying actively against the same. This puts their partnerships under the scanner.
“We’re not going to be part-owner of a bookmaker,” MLB lawyer Bryan Seeley said during an April 4 committee hearing on sports betting in Missouri.
