DraftKings is one largest sports betting markets in the United States The industry leader is also available in the United Kingdom, Germany, Austria, Canada (Ontario), Ireland, and Malta. As of last week, DraftKings announced they are no longer offering Daily Fantasy Sports (DFS) in the UK. As a company, DraftKings determined it’s in their best interest to close down operations in Great Britain.
Of $3.7 billion in revenue from sports betting in 2023, $69.8 million was business outside the United States. That is just 1.9% of total income from all other markets. DraftKings knows they are highly profitable in the U.S. and there was no need to continue business in the UK. A company spokesperson had this to say on Monday at the Global Gaming Expo.
“DraftKings will no longer be offering daily fantasy contests in Great Britain, and this decision was made as part of our ongoing efforts to optimize our business,” said the spokesperson. “Moving forward, we will continue to focus on growth and delivering value in other key markets, including U.S. sports betting.”
How successful was DFS in the United Kingdom?
February 2016 was the launch of Daily Fantasy Sports in the United Kingdom. Eight years ago, this was a pivotal time for DraftKings. Commercial sports betting was not legalized until 2018. At the time when the UK launched DFS through DraftKings, the company was signing deals with the MLB and ESPN.
In September 2021, DraftKings tried to expand its international reach with the purchase of $22 million in cash and stock to buy Entain. Their reasoning behind a $22 million bid for Entain was to give DraftKings an edge on their competitor, FanDuel. Entertain could have offered a significant international footprint for DraftKings. However, the two parties had a discussion but DraftKings never made a firm offer.
DraftKings is not the only operator to leave the market in the UK
Expansion into the United Kingdom was one of the first international markets for DraftKings. Despite the backing that DraftKings has, they were unable to establish their DFS market in the UK. In previous years, FanDuel and Yahoo have left the UK market as well. FanDuel was active for a few months in 2016 and Yahoo closed business in 2018. Now, the DFS market is limited for users and they’ve gone to social media to express disappointment in DraftKings.