DFS Industry Discussion Thread - Page 88 - Fantasy Sports -- Two Plus Two Poker Forums

http://venturebeat.com/2016/02/22/da...ying-unicorns/

Some fun dfs industry stats thrown around in this article:

"FanDuel raised an estimated $275 million in June 2015, and still has about $75 million to $100 million of that. DraftKings raised an estimated $500 million in 2015."

"The biggest expense is prizes for fans, while the second-biggest cost is sales and marketing... The cost to acquire a new user was somewhere around $125 to $175 in 2015. Also worth noting: the top 10 U.S. states accounted for 62 percent of the revenue in 2015. "

"1 percent of the users account for 60 percent of entry fees"

"FanDuel lost $137 million before taxes in 2015, while DraftKings lost an estimated $280 million. "

"both DraftKings and FanDuel have likely lost their unicorn status [startups valued at over $1 billion]"

"DraftKings is reportedly raising money at a significantly lower valuation"

Crazy these companies lost money last year. It's only because they spent ridiculous sums on advertising.

With little advertising right now they are selling out huge Nba contests every nite.

Management and venture capitalists made a huge mistake by going down the path of getting big as fast as possible.

They probably could have achieved pretty solid growth just appealing to sports fans and getting business from referrals and such.

Quote

02-24-2016 , 04:13 PM

#2177

Lawnmower Man

Pooh-Bah

Join Date: Feb 2015 Posts: 4,461

The biggest expense is returning money to players that was never ours. Sounds like some Hollywood accounting.

Quote

02-25-2016 , 11:25 AM

#2178

BillyPhelan

grinder

Join Date: Dec 2011 Posts: 630

Promising,but NY politics move very sloooooooooooooowly.

http://www.legalsportsreport.com/850...york-dfs-bill/

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02-26-2016 , 10:25 AM

#2179

TomG

Pooh-Bah

Join Date: Jun 2004 Posts: 4,294

1) create consumer protections
2) erect massive one time $500k barrier to entry
3) sites merge creating monopoly with no fear of competition
4) without competition, rake goes up, overlay disappears. monopoly is created and protected. innovation stagnates.

big sites win. gov't gets a cut. small sites and players get screwed.

sucks it happens this way and it's still probably better than the status quo.

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02-26-2016 , 11:33 PM

#2180

Joe Tall

Carpal \'Tunnel

Join Date: Apr 2003 Posts: 16,925

Quote:

Originally Posted by TomG

I dont think the rake-based liquidity model can last under these conditions.

Quote

02-27-2016 , 02:36 AM

#2181

DuckSauce

Carpal \'Tunnel

Join Date: Apr 2011 Posts: 11,756

Quote:

Originally Posted by Joe Tall

I dont think the rake-based liquidity model can last under these conditions.

Biggest hindrance is allowing for prize pools to go over the announcing amount. Likely not going to happen cause legal language and stuff

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03-02-2016 , 02:35 PM

#2182

wesrwood

temp-banned

Join Date: Feb 2007 Posts: 22,886

Any chance dfs is regulated and back in Nevada by the World Series ?

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03-02-2016 , 03:00 PM

#2183

CohibaBehike

Pooh-Bah

Join Date: Jul 2012 Posts: 3,651

Probably not, no.

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03-02-2016 , 03:17 PM

#2184

wesrwood

temp-banned

Join Date: Feb 2007 Posts: 22,886

Games are gonna dry up for a couple months

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03-02-2016 , 03:36 PM

#2185

Gzesh

Carpal \'Tunnel

Join Date: May 2011 Posts: 7,644

Quote:

Originally Posted by CohibaBehike

Probably not, no.

Want to offer odds on whether some Nevada licensed sportsbook offers DFS-scored wagering/player props, or such by June 30 ?

http://forumserver.twoplustwo.com/15...-list-1592735/

Hint: Any one of them could do it today, were it so inclined

One multi-book operator has a related entity investment of $25 million in a DFS provider and markets sign-ups on-property currently

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03-02-2016 , 04:16 PM

#2186

rakeme

Carpal \'Tunnel

Join Date: Dec 2011 Posts: 6,715

Has anyone received their 1099 form from DK yet? I'm still waiting for mine.

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03-02-2016 , 04:17 PM

#2187

pwnsall

CFBBPC

Join Date: Jun 2006 Posts: 65,637

I just got fanduel. Assume they are slow

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03-03-2016 , 07:53 AM

#2188

Punker

Carpal \'Tunnel

Join Date: Jan 2003 Posts: 8,352

Quote:

Originally Posted by CanadaPete

Crazy these companies lost money last year. It's only because they spent ridiculous sums on advertising.

With little advertising right now they are selling out huge Nba contests every nite.

you don't think there's a link between the huge amounts spent advertising to build a customer base quickly and their current ability to sell out contests without further advertising?

Quote

03-03-2016 , 05:35 PM

#2189

DaiLad

enthusiast

Join Date: May 2012 Posts: 75

Anyone else having trouble using DraftKings UK? I keep getting a location error. Contacted support and tried all the generic troubleshooting but still cant play

Quote

03-04-2016 , 06:29 PM

#2190

Priptonite

Carpal \'Tunnel

Join Date: Jan 2009 Posts: 17,204

FD backs out of Texas

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03-04-2016 , 06:58 PM

#2191

Losing all

Carpal \'Tunnel

Join Date: Sep 2003 Posts: 7,087

Quote:

Originally Posted by Priptonite

FD backs out of Texas

Brutal!

https://rotogrinders.com/threads/fan...idents-1200640

"eritas" said it best

Last edited by Losing all; 03-04-2016 at 07:16 PM. Reason: n/m, they edited his rant way down...

Quote

03-07-2016 , 11:25 AM

#2192

NDfan

Carpal \'Tunnel

Join Date: Jan 2009 Posts: 10,016

Can you access/play on DK or FD from legal states if your address is from a restricted state?

Quote

03-07-2016 , 02:19 PM

#2193

Joe Tall

Carpal \'Tunnel

Join Date: Apr 2003 Posts: 16,925

NV Gaming Committee on #DFS live:

l i v e stream.com/cityoflasvegas/events/4911714

Addenda: http://gaming.nv.gov/modules/showdoc...cumentid=10926

Last edited by Joe Tall; 03-07-2016 at 02:24 PM.

Quote

03-07-2016 , 08:44 PM

#2194

Joe Tall

Carpal \'Tunnel

Join Date: Apr 2003 Posts: 16,925

Virginia leads the way: Virginia’s governor just signed the nation’s first daily fantasy sports law

Quote

03-07-2016 , 09:12 PM

#2195

wesrwood

temp-banned

Join Date: Feb 2007 Posts: 22,886

Any news from the Vegas hearing ?

Quote

03-07-2016 , 10:32 PM

#2196

Joe Tall

Carpal \'Tunnel

Join Date: Apr 2003 Posts: 16,925

Quote:

Originally Posted by wesrwood

Any news from the Vegas hearing ?

Ummm turbo cliffs:

NV believes DFS is sports betting, wants DFS, but wants is under current licensing as proposed by the AG.
DK/FD not interesting in licensing (likely due to conceding it's sports betting and eyes of the rest of the States considering DFS bills.)

Quote

03-07-2016 , 10:34 PM

#2197

wesrwood

temp-banned

Join Date: Feb 2007 Posts: 22,886

So they are in a stalemate. Thanks

Quote

03-07-2016 , 11:22 PM

#2198

Joe Tall

Carpal \'Tunnel

Join Date: Apr 2003 Posts: 16,925

Quote:

Originally Posted by wesrwood

So they are in a stalemate. Thanks

Yup.

Quote

03-08-2016 , 01:53 AM

#2199

wesrwood

temp-banned

Join Date: Feb 2007 Posts: 22,886

Quote:

Originally Posted by Joe Tall

Yup.

You think we see a significant decrease in traffic during the wsop this year ?

Quote

03-08-2016 , 12:15 PM

#2200

Gzesh

Carpal \'Tunnel

Join Date: May 2011 Posts: 7,644

Quote:

Originally Posted by wesrwood

So they are in a stalemate. Thanks

Not really. The Committee was clearly interested in passing new legislation in 2017, when the Legislature is again in session, to build a new box for licensing DFS. I really do not see any likely opposition at this point. ......

The path is clear to licensing by Nevada on terms which would be acceptable to DK and FD, so long as they do not blow the opportunity. FWIW, FD/Eccles seemed more attuned to that than did DK/Robbens.

The wild card will be what happens in the Third Circuit PASPA litigation, likely to be decided by June.

This is really a pretty dynamic process, hardly a "stalemate" in Nevada or elsewhere.

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