Why DraftKings might not want to copy Uber’s lobbying efforts
Massachusetts legislators accused the transportation behemoth of “deceptive practices.’’
When the massively popular transportation app company Uber is confronted with government oversight efforts it deems less than favorable, it often circulates online petitions among its users urging regulators to take a different approach.
Boston-based fantasy sports company DraftKings, which also operates in the gray areas of a tightly governed industry, is likely to face regulatory efforts in Massachusetts and beyond. And according to The Boston Globe, it plans to borrow from Uber’s petition strategy.
“The way that Uber has managed its grass-roots efforts has been really the playbook,’’ DraftKings CEO Jason Robins said, according to the Globe. “We’ve been really fortunate to be able to follow those companies, observe what they’ve done, what worked and what didn’t.’’
DraftKings’s top competitor, FanDuel, has already begun a national signature drive. But the companies, which are mired in controversy over concerns about consumer safeguards, may want to be careful if they plan to replicate Uber’s approach in Massachusetts.
In late summer, ahead of a State House hearing to discuss several potential laws that would govern the mobile app-based car service, Uber launched an online campaign and user petition arguing against a bill that the company thought too cumbersome.
At the hearing, Rep. Michael Moran, the co-sponsor of the bill Uber opposed, vented about the practice and accused the company of “deceptive practices.’’
“I found that there is little room for debate on these issues when dealing with Uber,’’ Moran said. “It has to be done on their terms and in their way. Within days of us filing house [the bill], Uber launched a social media campaign against myself and [co-sponsor Sen. Linda Dorcena Forry] claiming that we are going to kill 10,000 jobs in Massachusetts.’’
Rep. Aaron Michlewitz, the co-chair of the committee that oversaw the hearing, said he was “disappointed in the tactics.’’
Uber similarly infuriated lawmakers in Kansas earlier this year, when the volume of petition emails shut down their email service for a few hours.
“I think it was a tactical error on their part,’’ one lawmaker said, according to The Washington Post.
Uber declined to comment in September on the critical comments from Massachusetts lawmakers, but said it captured 40,000 signatures within 48 hours of launching the statewide petition. The bills related to its service remain in committee and are not expected to be crafted into law this year.
DraftKings, meanwhile, is at the center of reviews from both the attorney general’s office and the Massachusetts Gaming Commission. The outcomes of those reviews are expected to help lawmakers determine how they want to govern the games. If the reactions from the Uber hearing are any indication, DraftKings may want to avoid strong-arming legislators when the time comes.
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