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Entry Revenues Down at DraftKings and FanDuel

Tuesday October 20,2015 :  ENTRY FEES AT MAIN D.F.S. SITES DECLINE FOR FIRST TIME (Update)
 
Speculation that massive negative media coverage is having an impact.
 
The massive negative international media coverage on daily fantasy sports "insider" allegations over the past three weeks  along with political and legality questions may be starting to impact the commercial viability of the two market leaders, DraftKings and FanDuel.
 
The UK-based independent monitor SuperLobby says that the numbers suggest that entry fees for the NFL Week 5 guaranteed prize pools on DraftKings were down 12 percent w-o-w last week at $22.9 million, whilst FanDuel statistics indicated that its week-on-week numbers were 3 percent down at $19.9 million.
 
The total number of paid prize pool entries at DraftKings’ declined 9 percent, with rival FanDuel suffering a 3 percent decrease. On the big-money contests, FanDuel's NFL Sunday Million showed ittle improvement in support, and at DraftKings the $7 million Millionaire Maker fell 10 percent.
 
Both major operator falls are the first this NFL season, which was prior to the insider scandal recording record figures. Total NFL competition guaranteed prize pools across all daily fantasy sports operators were also down at $7.3 million, a week-on-week decline of 6 percent.
 
Presumably in response to the crisis, both DraftKings and FanDuel have reduced the guaranteed pay-outs on NFL week six by a million dollars apiece. They have been joined by the Yahoo DFS operation, which has reduced its guarantee in week six following reduced week-on-week action in week five.
 
Monitors are now closely following statistical developments to assess whether the damage will continue.
 
In related news, DraftKings has released the findings of an independent third party legal review which it commissioned to study the "insider" allegations that triggered the massive negative media and political fall-out for the daily fantasy sports vertical.
 
InfoPowa readers will recall that legal firm Greenberg Traurig has been conducting the review of DraftKing employee Ethan Haskell's activities for the past fortnight.

It's report certifies that it has found no evidence of wrongdoing involved in Haskell's $350,000 win at DraftKings rival FanDuel. Specifically, the investigation showed that Haskell made his win 40 minutes before he had access to sensitive internal company information on player ownership percentages, which could have given him an advantage.
 
DraftKings CEO Jason Robins said that the legal firm also concluded that given the restrictions in place, it was not possible for confidential internal company information to be improperly used.
 
Whilst the result of the Greenberg Traurig review is positive for the company, it still faces the New York Attorney General's investigation, which it has pledged to support



Gambling News :

ACR $15 Million OSS Cub3d - Americas CardRoom immensely popular OSS Cub3d returns February 25th and it's bigger than ever. U.S. Online Poker players will have a chance to compete for $15 Million in guaranteed prize pools.

AIGF and Betradar formalised their relationship - At this yearís ICE Total Gaming, the All India Gaming Federation (AIGF) and Betradar formalised their relationship, committing to understand, explore opportunities and network across India around sports betting and gaming.

Lionís Roar Slot Pays Progressive at Ignition Casino - Ignition Casino saw a major win in one of their lion-themed slots last week. The recipient was a California slot player named Amber S.

EHF and Sportradar Extend Partnership - The EHF is responsible for a wide range of activities including the promotion and development of the sport, education programmes, player transfers and the organisation of high-profile sports competitions and events including the EHF EURO and the EHF Champions League.

Swisslos and Betradar in Deal - Swisslos offers lotteries, sport bets and instant tickets in the entire territory of German-speaking Switzerland, in Ticino and in the Principality of Liechtenstein. It structures its range of games in an attractive and responsible manner. Swisslos transfers it entire net profit to the mandating cantons and the Principality of Liechtenstein to support public causes.

World Snooker and Sportradar extend partnership - Extending a relationship that started in 2010, World Snooker is delighted to announce the renewal of their official data partnership with Sportradar.

Americas Cardroom offering mouth-watering value - It's not every day that an industry-leading poker site offers its customers an opportunity to put the house's money directly into their own pockets, but that's exactly whatís happening at Americas Cardroom.

Coolbet Joins Mpn - Coolbet, owned by the Estonian company StayCool OU, is a sportsbook driven brand with its own developed platform and sports software. In addition to sports, it offers casino and live casino gaming, and as of this week, poker.

RMG AND SIS EXTEND PARTNERSHIP - RMG manages the rights of many of the leading British racecourses, while SIS holds the horseracing rights to all Irish racecourses, plus Chelmsford City Racecourse in the UK.

Novomatic and Betradar in Deal - With ICE just a few days away, NOVOMATIC has announced a partnership with leading sports betting solutions provider Sportradar to develop an innovative line of sports betting products and services.

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