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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
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Online Lottery Scammers Arrested in Jamaica -
Jamaicas Lottery Scam Task Force, a special unit set up by the Jamaican police to combat the national embarrassment that online lottery scams have become, has been in action again this week, arresting 4 individuals in predawn operations Friday.
AMAZON SHOWS INCREASING INTEREST IN E-SPORTS -
Launched during the annual Twitchcon expo in San Diego this week, the new currency will integrate directly with Twitch as the retailer looks to chase monetisation with the promotion of the currency.
Gameaccount H1-2016 numbers -
On Friday Dermot Smurfits GameAccount Network (GAN) business posted its H1-2016 numbers, reporting a net pre-tax loss of GBP 2.3 million - an improvement on the GBP 2.6 million it lost in the same period last year.
Pokerstars Now Lead Sponsor of Global Poker League -
Alex Dreyfuss Global Poker League has received a significant boost from the announcement by Dreyfuss Mediarex Sports and Entertainment company Friday that online pokers biggest operator, Pokerstars, has signed on as lead and exclusive GPL sponsor.
Betconstruch invests in Ucrafts -
BetConstruct may have also been attracted by the obvious interest in Ucrafts business - the start-up has already gained 5,000 subscribers in just a few months of commercial activity.
Plus500 Founders Selling Off Shares -
Alon Gonen and Gal Haber respectively sold 7.2 million shares, retaining a 10.4 percent interest in the company; and 2.6 million shares, retaining a smaller stake of just 3.6 percent.
Rush Golf Live Launches -
Virtual sports provider Inspired Gaming has announced the launch of its latest product - Rush Golf Live - with Betfred the first operator to carry the game.
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