A few months ago, we reported on Malta’s decision to introduce a specific licence for daily fantasy sports. This meant more than just a licence for Malta—it provided international operators with an access point to the EU.

Now, we’re seeing one of the biggest impacts of that decision: DraftKings has gained a Maltese licence. Read on to find out more about how that impacts players across Europe—and in the UK.

What will DraftKings Germany look like? International operators expanding into Europe have taken different approaches. When FanDuel launched its UK site, for example, it decided to create a completely bespoke offering for the British audience, focusing solely on football. NHL DFS Picks: Top Stacks for DraftKings + FanDuel Jan. 13 Top Stack: COL1. The Avalanche, and many NHL DFS slates, end and begin with Nathan MacKinnon and the top line. A frontrunner for this year’s Hart Trophy and perennial point producer, he carries this line regardless of who is skating alongside him.

Background

In 2016, DraftKings began to expand its operations outside of North America with the launch of its UK site. However, in order to operate in the UK, it had to apply for a gambling licence. Whilst this meant that DraftKings were able to quickly enter the UK, it was not ideal for further expansion into the EU.

Meanwhile, in August, the Malta Gaming Authority decided to introduce a specific licence for DFS operators. This was not a gambling licence—instead, it categorised DFS as a game “determined predominantly by skill and knowledge“. In other words, in the battle of skill vs chance, the MGA came down firmly on the side of skill.

At first, this particular licence may seem quite unimportant—after all, Malta is a nation of under half a million. However, Malta is a member of the EU, so this licence matters. Effectively, it gives DFS operators the ability to operate in many EU states—including some very lucrative markets.

The new licences from the Malta Gaming Authority give DFS operators access to lucrative EU markets

DraftKings Makes Its Move

Deciding that the time was right to make its expansion into Europe, DraftKings decided to apply for one of the new Maltese controlled skill games licences. In January, the request was granted, making DraftKings the first company to receive the new licence.

Thanks to EU legislation, the licence means that DraftKings are now free to operate in several new countries. In fact, DraftKings have made no secret of their pan-European intentions. The company’s CIO Jeffrey Haas confirmed to Legal Sports Report that DraftKings would expand to Germany some time in 2017 Q1.

This doesn’t mean that the company has unfettered access to the EU, however. Several markets, including France and Italy, require operators to be locally based, meaning that the Maltese licence won’t cut it. Nonetheless, the licence represents a big step forward for the company’s global ambitions.

What will DraftKings Germany look like?

International operators expanding into Europe have taken different approaches. When FanDuel launched its UK site, for example, it decided to create a completely bespoke offering for the British audience, focusing solely on football. DraftKings UK, meanwhile, was essentially the same site as the North American version. The sports were the same, the look was the same—the site even kept US dollars as its sole currency.

The DraftKings interface is largely the same worldwide

So far, DraftKings appears to have the same plan for its German site. Many of the operator’s existing sports—such as football, golf, and basketball—are popular in Germany, standing DraftKings in good stead to hit the ground running. It also gives German players the chance to compete head-to-head against opponents in the US, UK, and Canada. This means a bigger prize pool for all players, and greater liquidity for the platform as a whole.

While there’s no official launch date for DraftKings Germany just yet, we can’t wait to welcome a whole new nation of DFS fans to the action. Willkommen, Deutschland!

Daily fantasy sports site DraftKings is heading to Germany. That’s thanks to a new gaming license the company acquired from the Malta Gaming Authority.

The international expansion will occur sometime during Q1, Jeffrey Haas, chief international officer for DraftKings, told Legal Sports Report.

Draftkings Germany Live

It marks the first expansion of DraftKings’ footprint since DraftKings UK went live about a year ago.

DraftKings, Malta and Germany

The core news is that DraftKings announced it had acquired a “Controlled Skill Games License” from the MGA. That is a new type of gaming license — apart from gambling licensing — that specifically looked to account for DFS.

Acquiring the license obviously allows DraftKings to operate in Malta, a small country with just about 400,000 people. But it also allows it access to other markets. An MGA license can be used to provide a legal basis under European Union law for operating in any EU member state.

For now, DraftKings indicates that expansion will only include in Germany, but in the future the license “will enable the company to operate in additional European countries.”

“We are excited to embark on this important phase of our international expansion,” said DraftKings co-founder and CEO Jason Robins. “We are pleased that Malta has recognized the need for special licensing of daily fantasy sports and other skilled based games. The Malta Gaming Authority is an innovative organization and it is clear that they have put a lot of thought and rigor into this process.”

DraftKings did not reveal specific plans to offer DFS in any other country. However, Haas did offer that DraftKings would likely “increase our addressable audience by at least 100 million people.”

The market for DFS in Germany

The top-line figure: DraftKings adds a country of 80 million people to its potential user base.

“We feel there is a tremendous market opportunity for DFS in Germany,” Haas said.

Draftkings App Germany

The plan for DK in Germany is to look much like the product the rest of the world sees. Liquidity in Germany will be shared across the DraftKings platform. That increases the potential player pool in all jurisdictions DraftKings serves.

“As we look at our international road map, our intent is to prioritize markets where we can share liquidity,” Haas said.

DFS will largely be a new concept for Germany, so it is difficult to gauge the market potential off the bat. However, German sports fans do follow a number of sports that DraftKings offers, including soccer, golf and basketball.

More regulation, international expansion for DFS

The move puts DraftKings under another regulatory regime. It holds a gambling license with the UK Gambling Commission. It is also registered or licensed in a variety of states that passed laws in 2016.

“Malta’s intention to regulate digital skill games with a prize was first announced in December 2014 when the MGA published a consultation document,” said Joseph Cuschieri, executive chairman of the MGA. “From then onwards, the MGA sought the input of various industry stakeholders and experts in order to develop a framework which facilitates the development of the sector, while ensuring adequate protection for players and fairness of the games.”

Previously, DraftKings and FanDuel had limited their reach to North America and the UK. The two DFS operators added the latter jurisdiction in 2016. The two companies will likely merge sometime later this year.

Draftkings Germany League

The plan does not appear to include large ring-fenced markets for gaming such as France, Italy and Spain, for now.