DraftKings is asking TV networks to delay airing its ads

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DraftKings, the daily fantasy sports site facing mounting legal challenges, has asked certain TV networks to delay its advertising commitments, according the Wall Street Journal.

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Apparently, the esports conglomerate - which spent $131.4 million from January to October this year on television spots - is asking TV networks to postpone the promise to air its ads from the fourth quarter of this year until the first quarter of next year, the WSJ reports.

In addition, people familiar with the matter said that DraftKings has also asked at least one media company for more breathing room in its payment terms, including giving the startup up to 120 days after a commercial airs to hand over money for the spot. (The typical ad contract requires payment within two months.)

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The report comes as the debate about whether daily fantasy sports - which has mainly focused on DraftKings and FanDuel - fall into the gambling category, and the two companies prepare for a possible lengthy and expensive battles in court.

Last week, New York Attorney General Eric Schneiderman declared the two sites constitute illegal gambling in the state and ordered them to shut down, which gave way to FanDuel-led strikes. Both DraftKings and FanDuel have decided to separately sue Schneiderman, with DraftKings claiming the attorney general's actions are a "shocking overreach" and that he has "unleashed an irresponsible, irrational, and illegal campaign to destroy a legitimate industry."

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But New York isn't the esports companies' only concern. The Department of Justice is probing the business models to see if they violate federal law as well.

There were also reports that employees of DraftKing were possibly using insider trading to make as much as $6 million playing on rival site FanDuel.

Business Insider reached out to DraftKings for comment and will update if we receive one.

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