Daily fantasy sports sites DraftKings and FanDuel have voluntarily agreed to stop taking wagers on college sports as part of a deal with the NCAA, according to ESPN.
Breaking: DraftKings, FanDuel to suspend contests on college sports indefinitely in all states in agreement with NCAA. Story filed to ESPN.
— David Payne Purdum (@DavidPurdum) March 31, 2016
Betting on college sports will end on the sites following this weekend’s Final Four and National Championship basketball games.
According to ESPN, college sports only amounts to three percent of FanDuel’s revenue.
While the NCAA had not initiated legal action against FanDuel and DraftKings, college sports’ largest governing body has been largely opposed to daily fantasy games, and gambling on its sports in general.
The decision by the companies comes amid a myriad of legal losses that have left DraftKings and FanDuel struggling to remain afloat. In the past few months, attorneys general in 10 states have banned the sites from taking bets, and both companies have slashed their once robust ad budgets to accommodate mounting legal fees.
The legality of daily fantasy sports boils down to a ruling set in the Unlawful Internet Gambling and Enforcement Act of 2006, in which lawmakers defined legal online gambling as a "game of skill." While DraftKings and FanDuel argue that successful players win as a result of research and practice, opponents of the games argue that the unpredictable nature of sports makes DraftKings and FanDuel "games of chance," or illegal gambling.
Alex Hider is a writer for the E.W. Scripps National Desk. Follow him on Twitter @alexhider.