DFS is dead

super sad about no more college DFS, hoping maybe a smaller site steps up

Bluntly put, blame the NCAA.

The sites apparently woke up and read the Federal Professional and Amateur Sports Protection Act and realized that the NCAA could get them enjoined and put tremendous heat on whatever State allowed DFS for college sports.

Don't expect much in the way of DFS for the Olympics for a similar reason.

Never understood why they offered it, I even brought up to several ops in the past on how it could lead to bad light.

Removing NCAA contests might actually save them money.

College sports only account for 3% of its business,which surprised me.Cheaper to axe it than fight for it.NCAA claws back it's monopoly on exploiting college athletes.Sadly CFB was my highest ROI%.

This is not at all true. The low volume players will get the biggest bump since you can play zero volume and just grab the flash bonuses / do missions. High volume players have almost no incentive to play more volume.

i do see your point there, also though may not be so so cut and dry

bc avg. small player, who uses FPPs from maybe a $20 to $50 a week stake probably isnt going to get lucky so to speak, and turn them into a sizable sum of money so they ultimately get handed off to the adventual winners of the tournies they use them for (whales and sharks)...

that 'Top Tier freeroll' would guess will have less than 250 players enter (this is all literally guessing), and then of them 250 or so 'whales' lol, theirs about 5-8 deep-rooted clicks whoall share bidnes, so you can break that little 250ish # down even way more, people sharing %'s, swapping action etc to keep one another afloat probably will happen among-st them 'top tier clans'. On the surface things may look 1 way sometimes but in reality its something much different...

kinda long but this all is interesting lol, had me thinking about it this AM. what I as implying with the 'rich get richer at DK' was in that 66.66~% of every $150k is going to the TOP tier, the ones who also pound the MAX entries often, while equity choppin/sharing %s so theyll get this free money anyway, even if indirectly, in theory, or could..


a pretty good indication obviously will be in some time a cpl months, if any of the 'whales' change their action in anyway noticeable, and thenif so how/why..


will be interesting to see how this one unfolds, for DK

Yeah,

"click a mouse and lose your house" looks marginally better than

"click a mouse and eat Ramen for the rest of the semester".

Is that 3% an overall handle number? As I could guess, (but too lazy to look it up), that college leagues ran a bit of a costly overlay the last few years.

CFB DFS was the GOAT DFS game. RIP

This is a paragraph from a LSR article after the news broke.

''The current market for daily fantasy sports on college contests is fairly small. FanDuel said that college football and basketball accounts for about 3% of its business in the ESPN report. Estimates put the entire college daily fantasy market between 5-10% of DFS revenue. (The entire universe of all DFS revenue in 2015 was about a quarter of a million dollars.)''

Huh?

Due to the insanely expensive ad campaigns neither FD or DK are profitable.I don't know the state of the smaller sites,several have closed up this year.

Certain groups keep harping on the point that DFS is "not profitable", because of the massive marketing spend last fall. I think in hopes that it will die a slow death. But how the big two managed their budgets/spending/exposure is really the issue. They massively overspent, FFS for a few months they outspent companies like ATT, Coke, Budweiser & Apple.


And it wasn't so much the issue of liquidity (need to bring in players) as it was just outright rapid market growth and heavy competition that drove them to the height.

I bet they wish they could redo that It put a bright spotlight on them which caused them to lose many lucrative states and thereby crushing any potential growth. I see their only path to any future growth is to fly as low under the radar as they can while using the legal process to try and get back those states that they lost. I haven't seen an ad of any type in months now but then again I am in a banned state (Illinois) and am curious to see what happens come next football season with national advertising.

Illinois, not a banned sate.

Ya wtf, lol scared me for a second

Summer of 2013, I put together a meeting of nearly the entire DFS industry operators (to be fair FD was under represented, but one person from FD was there), and this VERY thing came up (industry branding/messaging/exposure.) There was a DK founder in the room.

They wanted nothing of it.

Just exactly how do you see profitability for DK/FD happening anytime soon?

In hindsight it appears that the influx of VC money was tied to new customer acquisition, which would explain the marketing spend.

That being said, IMO there was terrible management of the growth of these companies. Even today we have the new MLB scoring issues on FD resulting in massive tie scores. The user experience has not improved. A contributing factor is that DK/FD resources are concentrated on lobbying & legal.

Right now they are more interested in protecting the duopoly than providing a decent product.

On the legal front, it's not a matter of if someone will bring a PASPA challenge to DFS legislation, but who will. (My guess is as soon as someone like Will Hill offers prop betting in a new state, NJ will probably step in with the challenge.)

As I have said before, someday there will be a 30 for 30 on DFS and it will be AWESOME.

Lol, dk rakes 500k a nite on nba without tons of overhead. They printed money this basketball season once they cut their ridiculous advertising budgets. Of course these companies can be super profitable.

I find that figure hard to believe. At 20% rake across the board (which is not happening yet), DK would need to collect $3 MILLION in entry fees each night to rake $500k.

To be clear I'm asking how can these companies can be profitable in 2016-2017, not if they will ever be profitable. I certainly hope they go IPO at some point so we can see the financials for ourselves.

Has anyone yet gotten the FPP bonuses from the missions? Already by Monday, the games (at least at the low end that I play) were back to 4 FPP/$.

Bad couple days for the industry.

Alabama cease and desist yesterday:

http://www.legalsportsreport.com/944...fs-is-illegal/

and Tenn AG issues an opinion that DFS is illegal today:

https://rotogrinders.com/threads/ten...hammer-1254821


I'm getting really sick of this ****!

I was just about to start betting MLB this season, too. Sigh, Tennessee.