The FanDuel Inc. app is arranged for a photograph on an Apple Inc. iPhone in Washington, D.C., U.S., on Sunday, Oct. 4, 2015. Fantasy sports companies DraftKings Inc. and FanDuel Inc. raised a total of $575 million in July from investors including KKR & Co., 21st Century Fox Inc. and Major League Baseball to attract players to games that pay out millions of dollars in cash prizes in daily contests. Photographer: Andrew Harrer/Bloomberg via Getty Images
2016By Sean Keeley on

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.

[Forbes]

About Sean Keeley

Along with writing for Awful Announcing and The Comeback, Sean is the Editorial Strategy Director for Comeback Media. Previously, he created the Syracuse blog Troy Nunes Is An Absolute Magician and wrote 'How To Grow An Orange: The Right Way to Brainwash Your Child Into Rooting for Syracuse.' He has also written non-Syracuse-related things for SB Nation, Curbed, and other outlets. He currently lives in Seattle where he is complaining about bagels. Send tips/comments/complaints to sean@thecomeback.com.

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