DraftKings became the first daily fantasy operator to get its licensed application approved in Louisiana after the Louisiana Gaming Control Board gave its nod on Thursday morning.
The effectivity of the approval is immediate and DratKings could begin DFS operations on Thursday.
By being the first DFS operator in the state ,DraftKings will have the leg up in both DFS and sports betting by being able to go live first. That’s because operators usually use their DFS databases to convert clients to sports betting, so having more time to build a DFS client base will work to its advantage.
Said Matt Kalish, co-founder and president of DraftKings North America:
“As DraftKings continues our nationwide expansion, we welcome Louisiana to the DraftKings family, an area rich with culture, heritage, and diehard fanbases in both college and professional sports. The Bayou will now have access to our world-leading daily fantasy sports product as we ramp up toward the kickoff of football season.”
$1.3M in Taxes for the State
DraftKings submitted its licensing request last February or shortly after the gaming board opened the application period. The Louisiana State Police Department conducted a background investigation and financial review of the company to ensure it complied with state regulations.
The LGCB says that DraftKings estimated that it would bring $15.5M in net revenue for the current year which would generate nearly $1.3M in tax dollars for the state.
DFS Permitted in Parishes Which Voted For Sports Betting
Louisiana residents who wish to participate in Daily Fantasy Sports activities will have be at least 21 years old and will have to be physically present in one of the parishes that voted to approve the legalization of sports betting. Those who reside in the parishes that voted in the negative will have to travel to one of the approving parishes to log-in to the online sites.
55 out of Louisiana’s 64 parishes voted to legalize DFS, sports betting on live action games but the gaming board has not yet finalized the regulations as well as the application process to start sports betting via retail betting sites, mobile apps, and online sites.