FanDuel’s legal professionals are presently drafting a requirement letter to be despatched to its important daily fantasy sportsbook competitor DraftKings.

The demand letter will clarify FanDuel’s displeasure with DraftKings’ commercials, particularly the language contained inside these adverts that reference the corporate’s dominance inside the quickly increasing daily fantasy gaming sector of a bigger fantasy sportsbook trade. Present plans contain the inclusion of an agency deadline by which DraftKings should take down what FanDuel believes to be false and/or deceptive info contained inside mentioned commercials. The choice would be the submit a lawsuit.

Up to now, daily fantasy sportsbook video games have had to reply to questions in regards to the legality of their providers.  Now, two of the most important daily fantasy sportsbook operators could also be concerned in a battle surrounding claims made about their positioning inside the extremely aggressive sector.

In line with a doc signed by FanDuel Inc. CEO Nigel Eccles and obtained by FORBES, FanDuel’s lifetime registrations from 2009 by way of December 2013 was 768,728 and the service’s lifetime distinctive depositors (customers who’ve made at the very least one deposit on the location) throughout that point was 288,449. FanDuel’s 2013 income (entry charges minus prizes) for the month of December was $2,840,309.  Based mostly on these numbers and a claimed “actually good concept of the place they’re compared with us,” FanDuel is able to take motion towards DraftKings for commercials that embrace language like “DraftKings is the #1 vacation spot for daily fantasy sportsbook on the web.

“We aren’t simply saying it is best to take this down; we’re saying you really want to take this down or we’ll sue you,” mentioned an government at FanDuel to FORBES.

FanDuel says that it has had folks taking snapshot after snapshot of DraftKings’ foyer, which is open to the general public.  It claims that it might get a enough estimate inside just a few share factors of key statistics about DraftKings’ consumer base from these screenshots alone.

“We’ve a very good concept of the place they’re compared with us,” mentioned the FanDuel government.  “They are saying they’re neck and neck, and typically bigger than us.  Because the house will get bigger and bigger, we won’t have an entity saying it’s the chief when it’s not.”

Femi Wasserman, Vice President at DraftKings, Inc. appears to be confused as to what FanDuel’s declare could also be.  “We sometimes use verbiage that claims ‘a number one supplier,’ so I am unsure what FanDuel is reacting to,” mentioned Wasserman to FORBES.  “We must know extra about what’s driving the priority, so now we have no remark till such time as now we have extra info.”

Of little dispute is the inflow of capital that the opponents have obtained previously 12 months.  It might have simply been a matter of time earlier than a authorized dispute between the juggernauts erupted, with each operators fiercely combating for the #1 spot in daily fantasy gaming.  In January 2013, FanDuel raised $11 million in Sequence C financing led by Comcast
Ventures.  Later that 12 months, DraftKings introduced the closing of a $24 million Sequence B spherical of funding led by Redpoint Ventures.

FanDuel has taken discover of DraftKings’ exorbitant increase of capital and its use of identical.  It believes that DraftKings has spent about $12 million in promoting final 12 months, with nearly all of its spend targeted on the NFL season.  FanDuel is 100% constructive that DraftKings spent at the very least double what FanDuel spent on TV promoting in 2013.  But, FanDuel can also be satisfied that there exists a large hole between the 2 daily fantasy sportsbook operators.

“They know they don’t seem to be near us, however they will not wish to launch numbers,” defined the FanDuel government.  “Notion is one thing folks take note of.  It’s one thing Nigel [Eccles] needs to sort out.”  FanDuel’s CEO has thus put his attorneys to work.  If DraftKings doesn’t adjust to FanDuel’s calls for, then we might witness a heavyweight battle between daily fantasy sportsbook giants.