MBR_Issue_27 -January 2017 low res

Malta Business Review
GAMING
DraftKings continues international expansion
About
DraftKings
Photo / DOI: Pierre Sammut
DraftKings is an innovative sportstech
entertainment platform,
changing the way consumers
engage with their favourite sports,
teams and athletes worldwide.
DraftKings, headquartered in
Boston, MA, offers daily and weekly
fantasy sports contests across ten
professional sports in the U.S.,
Canada and the United Kingdom.
Founded in 2012 by Jason Robins,
Matt Kalish, and Paul Liberman,
DraftKings is the exclusive daily
fantasy sports partner of Major
League Baseball, The National
Hockey League, NASCAR and the
Canadian Football League.
The Malta Gaming Authority has
issued a Controlled Skill Games
License to DraftKings, with
regulations that will protect consumers,
while bringing sports fans in Europe closer
to the sports they love.
DraftKings Inc., announced that its
subsidiary, DK Malta OpCo Ltd has been
granted a Controlled Skill Games License
from the Malta Gaming Authority (MGA),
following Malta’s recent introduction of a
new regulatory regime for certain games
of skill.
DraftKings is the world’s largest skill-based
Fantasy Sports (FS) platform, allowing
players to compete in daily or weekly
Manager Game-type online contests
across the largest variety of professional
sports, including seven leagues of Football
(soccer), North American Sports (NFL,
MLB, NBA, NHL, CFL & NASCAR), Mixed
Martial Arts, Golf (PGA & European Tour)
and eSports.
The Skill Games License will enable
DraftKings to operate in Malta and other
select European countries. DraftKings
intends to begin offering Fantasy Sport
contests in some markets in the first
quarter of 2017, with additional countries
to follow.
“Malta’s intention to regulate digital skill
games with a prize was first announced in
December 2014 when the MGA published
a consultation document. From then
onwards, the MGA sought the input of
various industry stakeholders and experts
in order to develop a framework which
facilitates the development of the sector,
while ensuring adequate protection for
players and fairness of the games”, said
Executive Chairman of the Malta Gaming
Authority Joseph Cuschieri.
We have taken a responsible, fair and less
conservative approach in order to enable
companies such as DraftKings, in obtaining
a license to operate in Malta and other
European countries, whilst protecting the
consumers. Such a regulation will again
put Malta at the forefront in the sector
of the digital economy”, said Minister for
Competitiveness and Digital, Maritime and
Services Economy Dr Emmanuel Mallia.
“We are excited to embark on this
important phase of our international
expansion,” said DraftKings co-founder and
CEO Jason Robins. “We are pleased that
Malta has recognized the need for special
regulation of certain skill-based games
such as online fantasy sports, which are an
important and growing sector of the digital
economy. The Malta Gaming Authority has
been a terrific partner in terms of depth
of analysis, appreciation of DraftKings’s
product, and examining how our system is
built to provide maximum enjoyment and
peace of mind to our customers. We take
pride in being regulated by this Authority.”
DraftKings’s announcement comes
nearly a year after it began successfully
operating in the United Kingdom. With
more than seven million registered players
worldwide, DraftKings has experienced
significant growth since its 2012 inception.
In 2016, the company saw year-to-year
growth of 20 percent, and a twelvefold
increase since 2014. In the United
Kingdom, DraftKings has averaged nearly
20 percent month-over-month growth of
its user base in the first nine months of
operation, outpacing the growth curve of
the US launch for the same time period.
“We are excited to embark on this
important phase of our international
expansion,” said DraftKings co-founder and
CEO Jason Robins. “We are pleased that
Malta has recognized the need for special
licensing of daily fantasy sports and other
skilled based games. The Malta Gaming
Authority is an innovative organization
and it is clear that they have put a lot of
thought and rigor into this process.”
The strength of the company and success in
the United Kingdom underpins DraftKings’
further European expansion. MBR
Credit: THE MINISTRY FOR COMPETITIVENESS AND
DIGITAL, MARITIME AND SERVICES ECONOMY/DOI
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