DraftKings withdraws daily fantasy sports product from key European markets 

DraftKings has informed customers it will be exiting four of its European daily fantasy sports (DFS) markets with effect from 22 January, ending a five-year sojourn into the market to concentrate on the US.

In an email to customers, seen by EGR, the US-based operator confirmed its impending exit from Austria, Germany, Ireland and Malta, where it has operated since 2017 under a Malta Gaming Authority (MGA) licence.

“Since DraftKings’ launch in Austria, Germany, Ireland and Malta in 2017, we have been proud to be a part of those countries’ passionate sports and daily fantasy fanbases.

“Effective 22 January, you will be prohibited from depositing and entering all fantasy sports contests while physically located in Austria, Germany, Ireland and Malta,” the email states.

The email goes on to confirm that DraftKings will convert players’ Crowns, DK Dollars and the value of DFS Contest Tickets to US dollars with effect from today.

Players are then “strongly recommended” to initiate a withdrawal request, and any player who does not do so after the 22 January must then contact the Malta Gaming Authority, which will be in possession of all remaining funds on DFS accounts not withdrawn by that date.

In a statement provided to EGR, a spokesperson for DraftKings confirmed this change was part of strategies aimed at focusing on the US and Canadian markets.

“In order to most effectively serve our rapidly growing North American sports betting customer base, we have made the difficult decision to cease offering DFS in Austria, Germany, Ireland, and Malta effective 22 January,” DraftKings said.

“While there is unquestionably a passionate fantasy sports community in these four countries and we have seen strong engagement since our 2017 launches, this decision aligns with DraftKings’ current focus on and prioritization of the North American market,” the operator added.

The immediacy of the exit saw some users take to Twitter to voice their views on the closure.

Bad news for German @DraftKings users and on a very short notice. I hope withdrawal works, already contacted support. Very sad I cannot play from Germany anymore. pic.twitter.com/Ivn1K81hgW

— uglywolf (@uglywolf6) January 18, 2023

DraftKings European sojourn began in 2015 with the obtaining of a licence from the UK Gambling Commission (UKGC) to operate DFS contests in the UK.

Following success in the UK market, the firm applied for a licence to operate in Malta from the MGA following the creation of specific licences for DFS operators in August 2016 as part of the revamping of the island’s gambling laws.

Speaking about the UK product in December 2016, DraftKings CEO Jason Robins lauded its potential.

“The UK [product] is already significantly ahead of where the US was in its first year,” Robins said at the time.

“That’s in a country a fifth of the size of the US and that’s only gotten us even more bullish on expanding into the rest of the world,” the DraftKings CEO added.

The Maltese licence was granted in 2017 to DraftKings Crown DFS Malta Limited subsidiary, and remains in effect to this day.

The ‘controlled skill games’ licence effectively opened up the rest of Europe to the DFS operator, with DraftKings launching first in Germany in 2017.

The DraftKings European DFS product mirrored its hugely successful US DFS offering, sharing the same platform, format and liquidity pool as the US version.

At the time, the then DraftKings chief international officer Jeffrey Haas lauded the potential of the German market.

“Germans show a proclivity for American sports, particularly the NFL and NBA,” said Haas.

“Initial testing in Germany shows that our most popular sport has been the NBA, which is why we are opening our beta test to all German sports fans,” he added.

Subsequent DFS launches followed in Ireland and Austria in 2017.

The European exit effectively leaves DraftKings with just its UK operations as its sole foothold outside of the US.