The writing has been on the wall for a while now for daily fantasy sports sites FanDuel and DraftKings as politicians started asking questions and states moved to regulate or outright ban them. When FanDuel started delaying payments to customers in November, it seemed as though they were merely plugging a crack before the ocean came crashing through the wall.
Now, according to Forbes, FanDuel has begun the layoff process. It’s currently unknown how many staff members are being let go, and the company has denied layoffs publicly so far.
The news comes on the heels of Texas Attorney General Ken Paxton’s statement that daily fantasy sports would be considered illegal gambling in his state, the latest in a string of states putting the kibosh on daily fantasy sports.
It’s been an epic rise and fall for FanDuel, who along with DraftKings dominated the commercial airwaves in the early weeks of the NFL’s 2015 regular season. The two companies spent a combined $31 million on advertising consisting of 9,000 ads in one week alone.
Still, the door isn’t closed just yet on FanDuel and DraftKings. The Fantasy Sports Trade Association continues to fight for states to adopt regulations that would protect consumers and but also establish their products as games of chance, not skill. One such bill is in the works in Wisconsin by State Rep. Tyler Vorpagel.