DFS Legalization Inevitable According to Mark Cuban

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Tuesday, January 26th, 2016 | Written by Shane Larson

Mark Cuban is one of the most high profile owners of a professional sports team in the United States, and has invested in a number of start-ups both on his own and through the hit television show “Shark Tank.” Even in the midst of controversy over the legality of daily fantasy sports betting and a possible lack of ethics in the industry, Cuban has invested in a new eSports gambling platform called Unkim. In a recent interview, Cuban said that while he’s certain that the industry will one day soon face government regulation, he still believes the future is bright for daily fantasy sports.

Turbulent 2015 For DFS Firms

In 2015, daily fantasy sports companies such as DraftKings and FanDuel saw an exponential rise in their popularity as they poured millions of dollars into marketing their products, with a level of impunity not seen since online poker websites did so in the USA pre-Black Friday. However, their high-profile marketing campaigns attracted the attention of state lawmakers, who subsequently questioned whether DFS betting should be considered gambling, and therefore subject to control and legislation. A number of states then decided to ban DFS products from their jurisdictions, including Nevada, Illinois, Texas, and New York, with the latter also seeking to retrieve money spent by New Yorkers at the site, as well as impose hefty penalties on these companies.

Cuban Speaks Out Against DFS Opponents

Cuban isn’t one to be shy about speaking his mind, and he didn’t hold back in his recent Fortune Magazine interview when it came to criticizing those who oppose daily fantasy sports betting. He accused district attorneys of targeting the industry in order to make themselves look tough and garner support from their constituents in anticipation of 2016 elections. In addition, Cuban says that if states choose to regulate DFS betting, it won’t be entirely because they want to protect consumers; at least some of the motivation will stem from a desire for tax revenue, he feels.

Although Cuban is a billionaire, he accumulated his wealth all on his own. He didn’t get a huge inheritance from a parent or grandparent. As such, he vehemently believes that people should be free to spend their own money as they see fit. He doesn’t give credence to moral oppositions to gambling, stating that people should have a right to gamble if they choose.

About Unikrn

As mentioned at the start of the article, Cuban has a vested interest in daily fantasy sports due to his investment in Unikrn. Based in Washington, the company was founded in 2013. The company isn’t a conventional daily fantasy sports betting site, but it does feature gambling.

Instead of betting on sporting events, users can place bets on eSports competitions. Unikrn hosts a professional video gaming tour where top competitive gamers gather to play games like League of Legends. Winners are awarded cash prizes, and bettors win cash, too, if their favored players come out on top.

Currently Unikrn is unable to accept cash bets from players in the U.S., but it does allow foreign users to make cash wagers, provided they live in countries that permit online gambling. In the United States, Unikrn users can get in on the excitement of betting on events, but they can only place wagers with a currency called Unicoins. This currency can be traded for items from the Unikrn store.

Cuban has stated that he saw Unikrn as a great investment opportunity. Twitch has spurred a major interest in watching video games much like sporting events, and the Unikrn tournaments are attracting big turnouts. With gambling being legal in 100 countries, there is a wealth of opportunity for the iGaming side of the business, too, Cuban feels, even if for now American users are left out of the action.

About Fantasy Labs

At the start of 2016, Mark Cuban also invested in Fantasy Labs, a DFS company that specializes in offering analytical software to assist players improve their picks and performance. As the 57 year old billionaire explained at the time: “The explosive growth of fantasy sports, and its involvement with new categories of competition like eSports, increases the need for high-end resources like the platform offered by Fantasy Labs. I’m excited to be involved with a company that is working to advance an industry that is poised for huge growth.”