Quote:
Originally Posted by anguila
I'm sure this question has an easy answer...
But why do GPPs close at a certain number instead of being open to going above the guaranteed prize pool?
Thx in advance!
This had to with the UIGEA legislation in the US on gambling, fantasy sports need to have pre-determined prizes in their contests not to fall foul of the law.
Grey area and hence why they ended up in a lot of legal hustle across the different states.
In the UK this does not apply, it is considered gambling and pool betting. No ambiguity so a GPP can increase in prizes with more entries than expected. Only few sites like Bet4best can do this with contests filling with more than expected.
Problem here is attracting, engaging and retaining customers. Most UK sites have at best few hundred players and lots of overlay as we can see in Mondo. They started with 10k GPP and now decreased to about 1k to 2k, increased buy-in's to £10. Few hard-core players left now, not a sustainable business.