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The implosion of the daily fantasy industry

93 点作者 golfstrom超过 8 年前

9 条评论

z2超过 8 年前
With user acquisition costs of &quot;$190 per user for DraftKings and $110 for FanDuel&quot; [0], what, besides long term casino-style gambling addiction, can hope to recover the costs? And unlike casino gamblers, don&#x27;t &#x27;bro-classic&#x27; people tend to grow out of these things after a while?<p>[0] <a href="http:&#x2F;&#x2F;www.usnews.com&#x2F;news&#x2F;articles&#x2F;2015&#x2F;10&#x2F;30&#x2F;draftkings-fanduel-and-gambling-on-the-world-of-fantasy-sports" rel="nofollow">http:&#x2F;&#x2F;www.usnews.com&#x2F;news&#x2F;articles&#x2F;2015&#x2F;10&#x2F;30&#x2F;draftkings-fa...</a>
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exolymph超过 8 年前
For what it&#x27;s worth, Fortune writer Dan Primack said on Twitter, &quot;There is an amazing amount wrong with this ESPN piece on DraftKings&#x2F;FanDuel. Awful.&quot; <a href="https:&#x2F;&#x2F;twitter.com&#x2F;danprimack&#x2F;status&#x2F;768463010503467009" rel="nofollow">https:&#x2F;&#x2F;twitter.com&#x2F;danprimack&#x2F;status&#x2F;768463010503467009</a><p>Then followed up: &quot;ESPN and @DVNJr write that daily fantasy has &#x27;imploded.&#x27; Really? Both leading players are still operating. [...] True neither FD nor DK are profitable. But they are young tech startups. Lack of profitability doesn&#x27;t mean disaster at this stage&quot; <a href="https:&#x2F;&#x2F;twitter.com&#x2F;danprimack&#x2F;status&#x2F;768464361258098688" rel="nofollow">https:&#x2F;&#x2F;twitter.com&#x2F;danprimack&#x2F;status&#x2F;768464361258098688</a>
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bradwschiller超过 8 年前
I think what&#x27;s missing here is that the product is sticky for a number of people and spending on user acquisition costs are likely to go down. Each company essentially takes a 10% rake on every game and I&#x27;d imagine these companies will be profitable in the long. I don&#x27;t think legal issues will destroy these companies as it&#x27;s really only a matter of time before sports gambling becomes legal across the US and New York is already letting these companies continue to operate this year.<p>I don&#x27;t believe the issue around small numbers of players making all of the money is important. As someone who uses both platforms for fun, I find I&#x27;m willing and many of my friends are willing to lose a bit of money each week as it makes the games far more entertaining to watch when you have a rooting interest. Many of the sports leagues and ESPN realize this which is why you saw them invest in these companies. Fantasy leads to more engagement with the sports and daily fantasy leads to even more engagement.<p>Daily fantasy is not for everyone, but it&#x27;ll likely maintain a core number of users, many of whom use both FanDuel and DraftKings. Acquisition costs will be less important in the future and provided that fixed costs such as legal fees decrease in the coming years, these companies will become stable and profitable.
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atombath超过 8 年前
I&#x27;m wondering why gambling(except for lotteries and casinos, etc.) was made illegal? Was it a &#x27;we must protect people from themselves&#x27; type of law? Or a &#x27;casinos have lobbied for protection of their business&#x27; type of law? Or &#x27;this type of industry requires regulation but its too damn expensive to regulate&#x27; type of law?<p>I say this as the guy who consistently makes fun of the lottery while also buying video game &#x27;this is totally not gambling either&#x27; loot chests.
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Animats超过 8 年前
It really is a game of skill. And that&#x27;s killing the industry. The good players, with a big bankroll and computer support, can win. Everybody else is a sucker. Like the stock market. So the suckers are bailing.
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univalent超过 8 年前
Good. I probably saw&#x2F;heard their ads thousands of times (no exagg.) over a few month period. They annoyed me so much I wouldn&#x27;t give them any business even if I found their product fun (which I didn&#x27;t).
swang超过 8 年前
i don&#x27;t know how accurate the article is but arguable the dfs industry is shrinking. almost no one other than fanduel&#x2F;draftkings exists on a scale to possibly make a profit. and then you have state governments trying to ban them or charge them with crimes.<p>the biggest long term problem i see (and the article partially addresses) is all these pros bumhunting the low-stakes games because there&#x27;s no reason not to. it doesn&#x27;t take any additional time nor mental focus to join some microstakes games like it would if you were playing online poker.<p>anyone who play dfs, how are money withdrawals from the site? is it relatively quick&#x2F;easy to get money out of your accounts? otherwise i definitely see that as a huge risk just like it was towards the end of the online poker boom.
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jackschultz超过 8 年前
I write my own golf blog, with weekly previews of the tournaments, and as a way to get traffic, I&#x27;d post a weekly DFS picks post, and then link to both articles in a reddit comment on the DFS subreddit[1]. The idea being that people would look at the pics, but also read the more interesting preview I&#x27;d write.<p>I eventually stopped doing that after seeing weekly posts on that subreddit about how people were losing too much money and had to stop playing for a while. Didn&#x27;t want to keep messing around helping people lose money. Always that side to an industry based on gambling.<p>[1] <a href="https:&#x2F;&#x2F;www.reddit.com&#x2F;r&#x2F;dfsports&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.reddit.com&#x2F;r&#x2F;dfsports&#x2F;</a>
robinhowlett超过 8 年前
I haven&#x27;t read this (long) article in its entirety yet but I did make this presentation[1] last year to satisfy my interest in the space and help me understand where it stood.<p>I borrowed a lot from Adam Krejcik&#x27;s tweets, who is quoted in this article. See slide 21 for notes about player attrition<p>[1] <a href="http:&#x2F;&#x2F;www.slideshare.net&#x2F;robinhowlett&#x2F;daily-fantasy-sports-dfs-notes" rel="nofollow">http:&#x2F;&#x2F;www.slideshare.net&#x2F;robinhowlett&#x2F;daily-fantasy-sports-...</a>