It’s still a fairly new company in a fairly new industry, so the question is fair: Is DraftKings legit and safe?
Let’s put it this way:
They have over a million users on their site, partnerships with both Major Leaugue Baseball and the National Hockey League, sponsorship deals with over 50 different professional sports teams, and (according to the Boston Globe), recently had a valuation estimated at $1 billion.
Yes, DraftKings is legit.
Unlike online sports books and the shady online poker sites from a few years ago, DraftKings is headquartered in the United States – Boston to be more specific. The company was founded in 2012 by three Boston-area buddies who built the company up from one of the founders’ homes.
Also unlike the poker days, you can legally deposit money (in most states) on DraftKings using a Visa or MasterCard. And withdrawals are quick and easy. Make your own call of course, but a million American players seem to think their money is safe on DraftKings.
Is DraftKings Safe?
First off, in case you were wondering, playing daily fantasy sports online for real money on sites like DraftKings is legal (in most states), per a special cave-out exemption in the 2006 UIEGA bill passed by Congress and signed by President Bush. (Go here to read more about how DraftKings is legal)
What this means is that not only is it legal, playing on DraftKings is much safer than depositing on an offshore sportsbook or poker site.
One of the two big dogs in the daily fantasy sports game (FanDuel being the other), DraftKings has surpassed FanDuel as the busiest daily fantasy sports site. (DraftKings says it has surpassed FanDuel in terms of player volume).
On top of guaranteed prize pools such as the millionaire maker for first place during week one of the 2016 NFL season, DraftKings is expected to give away hundreds of millions of dollars in total prize money in 2017.
Money doesn’t equate to legitimacy of course, but it helps. To that end, DraftKings has earned the confidence of entities ranging from billion dollar venture capital firms, to the UFC. While several media outlets have reported that that Draftkings and Fanduel have yet to reach profitability, DraftKings continues to receive funding.
In fact, as recently as March of 2017, DraftKings received another round of funding, to the tune of more than $100 million, according to Forbes Magazine. Previous investors and who are now part-owners of the site, include Fox Sports, and the Kraft Group (i.e. the group led by Patriot’s owner Robert Kraft).
DraftKings has marketing partnerships with Major League Baseball, the NHL, UFC, NASCAR and a wide variety of individual professional sports franchises.
These include marketing partnerships with 27 different MLB teams, 8 NBA teams, 7 NHL teams, and 5 NFL teams, including the Denver Broncos, Pittsburgh Steelers, New England Patriots (Pat’s owner Robert Kraft is a part-owner of DraftKings), the Pittsburgh Steelers, and New York Giants.
As an industry leader, DraftKings has bought out smaller competitors like DraftStreet and StarStreet.
DraftKings has also recently upgraded their New York City offices. They now occupy over 23,000 square feet of office space on the fifth floor of a building at 400 Lafayette Street in Manhattan, according to New York City real estate site, therealdeal.com. The lease signed by DraftKings, runs for 5 years.
You’ll have to determine the safety and legitimacy of Draftkings for yourself of course; but I’m confident in the company. I’ve always been paid by DraftKings in a timely manner. They’ve also always had good customer service and responded to my emails quickly. I can’t say the same about FanDuel.
Furthermore, there aren’t complaints about people not getting paid, nor are there the questions of its legality, as there had been for many sites in the online poker days. So feel confident when playing on DraftKings. A wide receiver with a case of the “dropsies” is the only reason you should feel insecure playing on DraftKings.
(by Steve Beauregard. Photo courtesy of Craig Lloyd via Flickr.)