DraftKings shutters Oregon DFS product in sports betting push
Operator in discussions with Beaver State officials amid concerns over DFS legality as players rail against closure
DraftKings has closed its DFS offering to players in Oregon amid discussions to take over the sports betting concession in the Beaver State from the Oregon Lottery.
In a memo to DFS customers in the state, DraftKings said: “As you might already be aware, DraftKings has been in discussions with the Oregon Lottery to potentially transition its Scoreboard app to the DraftKings platform.
“During these discussions, some questions have been raised about whether paid fantasy sports contests are permissible under Oregon law.
“While we respectfully disagree, we value our relationship with the Oregon Lottery and share a common commitment to best serve Oregonians who are passionate about sports betting,” the note adds.
As a result, DraftKings suspended all DFS contests from 7am PST yesterday morning, prompting a furious backlash from players in the state on Twitter.
@DraftKings @oregonlottery really? No more DFS in Oregon? How in the hell can you legally bet on sports but can’t play DFS?
— Timmy Haberman (@denvertimmy) July 24, 2021
I just uninstalled my @oregon_lottery #Scoreboard app. If they want to pressure @DraftKings to drop DFS, I'm dropping them.
— Adam P Farnsworth (@AdamPFarnsworth) July 24, 2021
At present, players in Oregon can only place a bet online through the Oregon Lottery’s Scoreboard app, although DraftKings is in talks with officials to take over the running of this business.
Powered by SBTech, Scoreboard launched in October 2019 a few months before DraftKings acquired SBTech in a $3.3bn three-way merger involving a SPAC.
In Q2 2021, Oregon generated more than $78m in sports betting handle and $7m in revenue, with more than 2.2 million bets placed during the quarter, yet the contract with SBTech has come in for heavy criticism due to the unimpressive handle and taxes generated, as well as the opaque nature of the deal.
Furthermore, the app was knocked offline last year after a large cyberattack perpetrated against SBTech.
One beneficiary of the DraftKings DFS closure is nearest rival FanDuel, which wasted no time in confirming its continued offering in Oregon.
@FanDuel can users in Oregon play paid fantasy contests for the upcoming nfl season?
— Joe Malcolm (@joecool8712) July 24, 2021
The rivals have previously faced problems with DFS in Connecticut, where officials had lobbied for operators to end DFS operations to allow them to run state-wide sportsbooks.
However, a deal was later struck to allow DFS operators to continue operations in the state, provided they partnered with the state’s existing tribal casinos or the lottery.
DraftKings and FanDuel were the main beneficiaries of the agreement, with the former partnering with the Mashantucket Pequot Tribe and the latter working with the Mohegan Tribe.
Several other DFS operators, including Bally’s-owned MonkeyKnifeFight, were forced out of Connecticut as a result.