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DAILY FANTASY SPORTS A LUCRATIVE BUSINESS

Friday January 16,2015 : DAILY FANTASY SPORTS A LUCRATIVE BUSINESS
 
Market leader FanDuel's latest numbers show the way.
 
If you ever doubted the potential of the daily fantasy sports betting business, think again; the latest numbers from one of the market leaders illustrates the boom that is being experienced as US players in particular flock to d.f.s. sites and pay to predict the fortunes of their imaginary teams for fun and hopefully profit.
 
FanDuel this week reported full year revenues of $57.3 million, a massive 298 percent year-on-year rise, with the operator paying out $564.4 million in prizes. That’s up from about $14 million the previous year and $1.2 million in 2011.
 
Founder and CEO Nigel Eccles (40) says that he's in the business for the long haul and has his sights set on building a multibillion-dollar business.
 
New York-based FanDuel has over a million paying users and controls about two-thirds of the d.f.s. market.
 
The company, which was valued at more than $1 billion during its last investment round according to some sources, has raised $88 million from investors including Comcast; private equity firms Shamrock Capital Advisors and KKR; and the National Basketball Association
 
It's biggest rival is Boston-based DraftKings, which has attracted $76 million in venture capital.
 
Eilers Research predicts that this year the d.f.s. sector will collect more in entry fees than all the sports books at Vegas casinos combined.
 
Eccles says that FanDuel can rake in $27,500 in entry fees per second, and that he plans to expand the number of live contests, including some at the Playboy Mansion. He’s also talking with sports channels about producing a reality show about fantasy players to heighten the sector's profile.
 
He revealed to reporters recently that the average new customer acquisition cost is $70, but retention is good.
 
“In what other business do you buy a customer for $70 and that user generates $100 per year indefinitely?” he asks, pointing out that good marketing of a good product is the key to success.



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NHL Odds: Forsberg Faces Elliott in Nashville - The last time the Nashville Predators played against the Calgary Flames, Calgary had a 4-1 lead five minutes into the second period. Nashville responded with four back-to-back goals, including a hat trick from centreman Filip Forsberg. Both teams went into overtime with five goals, and Calgary defenseman Mark Giordano (12 goals, 22 assists) scored the winning goal.

Sit & Go 2.0 launched online exclusively at Americas Cardroom - Get ready to cheer like a champion before the first flop is even dealt. The much-anticipated Sit & Go 2.0 is now launched online exclusively at Americas Cardroom and Sit & Go players are reaping the benefits of the next evolution of poker.

NBA Odds: Hawks, Wiz in Southeast Showdown - The Washington Wizards (42-27 SU, 36-32-1 ATS) can pretty much secure the Southeast Division title with a win Wednesday night over the Atlanta Hawks (37-32 SU, 31-38 ATS). Tip-off is at 8 PM ET on ESPN; the Wizards lead Atlanta by five games with less than a month remaining before the playoffs.

Mega Moolah progressive jackpot Hit Again - Microgaming’s Mega Moolah progressive jackpot slot has been hit yet again at just over €6.6 million!

NBA Odds: Clippers Try to Slow Down Bucks in LA - Milwaukee Bucks small forward Giannis Antetokounmpo and Los Angeles Clippers power forward Blake Griffin are two of the most talented and versatile forwards in the NBA. The two lead their teams into battle on Wednesday in Los Angeles.

NCAAB Odds: SMU Hosts Tulsa With AAC Title on the Line - There aren’t too many college basketball teams more profitable than the SMU Mustangs (25-4 SU, 18-5-1 ATS). They host the Tulsa Golden Hurricane (14-14 SU, 15-12 ATS) this Thursday night, tipping off at 8 PM ET on CBSSN.

NHL Odds: Canadiens Welcome Islanders Tonight - The Montreal Canadiens (32-20-8) welcome the New York Islanders (28-21-10) on Thursday (7:30 PM ET on SNE). After getting their first victory under new head coach Claude Julien, the Canadiens will look to build on that momentum against a red-hot Islanders team.

NHL Odds: Reeling Flyers Seek Relief in Pittsburgh - #nhl The Philadelphia Flyers have been a bit off since the holidays. They’ve won just eight games since the Christmas break, and now they’ve got a tough one coming up this Saturday night against the Pittsburgh Penguins.

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