GPWA Times Magazine - Issue 31 - February 2015

Both of these happened well before DFS re- ally gained traction, so logic would have it that DFS would not be silly enough to make the same mistakes. While anecdotal, many DFS forums discuss abnormalities in games that have led to ques- tions regarding customer service procedures, software bugs or, worse, cheating and collu- sion. These abnormalities range from team roster changes after closing to “house-play- er” and bot accusations. Now, remember I mentioned that DFS is not a regulated gambling business under any jurisdiction? It is just a regular business, not subject to any additional regulatory control beyond ordinary business and tax statutes. There are no legal requirements for DFS operators to segregate funds, disclose fi- nancials or have software systems certified for accuracy and accountability. Caveat emptor. However, the absence of regulation doesn’t mean that operators shouldn’t do these things. DFS operators have great reasons to do all of them and more. I’m sure it’s clear where I’m heading: Black Monday. Bad news for online poker on that day in 2006, but could a Black Monday event hit DFS? A large mitigator is the official and unofficial backing of the multi-billion-dollar major- league sports industry of the U.S. Both the NFL and Major League Baseball recognize the correlation between fantasy sports and their revenue, and now that the NBA owns shares of FanDuel, any ambitious lawmaker, attorney general or district attorney will have something more to consider. That said, every skyrocketing industry at- tracts bad actors, and we’ve seen our share, not only in online poker but in every success- ful industry; all it takes is one newsworthy event for everything to go sideways. As a preventive measure, the fantasy sports industry, perhaps through the Fantasy Sports Trade Association, can choose to enact self- regulatory oversight and rules to prevent bad actors and distance itself from them, while protecting players as a side effect. Frankly, moving in this direction may not only keep legislators away but may also in- crease player confidence and erect barriers to entry for competition. There is a business case for it. Maybe poker should have seen regulation coming, but DFS has the advantage of having seen the damage that the regulatory Mack truck of regulation can do. Why do these parallels exist between DFS and online poker? Is it what we are taught must be done in order to succeed in business? Or do we think, “This time, it will be different.” Einstein defined insanity as “doing the same thing over and over again and expecting dif- ferent results.” Sisyphus, king of Ephyra, had to roll a boulder up a hill repeatedly as punishment, but since we haven’t been cursed by Zeus, perhaps it is time to learn from history and do things differently. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hai Ng Co-founder of Neomancer, a unique technology consultancy and advisory firm, Hai Ng applies an anthropologically pragmatic approach when using technology to solve problems. Hai tweets on matters of iGaming as @HaiOnGaming Daily fantasy sports (DFS) is the rising star today, rapidly pushing into the billion-dollar fantasy sports industry, propelling innovative operators into seven- and eight-figure valuations.” 21