The implosion of the daily fantasy industry
1–10 of 52 posts
Re: The implosion of the daily fantasy industry
#2For what it's worth, Fortune writer Dan Primack said on Twitter, "There is an amazing amount wrong with this ESPN piece on DraftKings/FanDuel. Awful." https://twitter.com/danprimack/status/768463010503467009
Then followed up: "ESPN and @DVNJr write that daily fantasy has 'imploded.' Really? Both leading players are still operating. [...] True neither FD nor DK are profitable. But they are young tech startups. Lack of profitability doesn't mean disaster at this stage" https://twitter.com/danprimack/status/768464361258098688
Re: The implosion of the daily fantasy industry
#3For what it's worth, Fortune writer Dan Primack said on Twitter, "There is an amazing amount wrong with this ESPN piece on DraftKings/FanDuel. Awful." https://twitter.com/danprimack/status/768463010503467009 Then followed up: "ESPN and @DVNJr write that daily fantasy has 'imploded.' Really? Both leading players are still operating. [...] True neither FD nor DK are profitable. But they are young tech startups. Lack of…
With the way states were blocking them from operating in them at such a rapid pace for a while once FD/DK started advertising like crazy, I don't know if they will ever be able to get back to where they were. Once you are lumped in as gambling the rules change and get much harder online.
Re: The implosion of the daily fantasy industry
#4With user acquisition costs of "$190 per user for DraftKings and $110 for FanDuel" [0], what, besides long term casino-style gambling addiction, can hope to recover the costs? And unlike casino gamblers, don't 'bro-classic' people tend to grow out of these things after a while?
[0] http://www.usnews.com/news/articles/2015/10/30/draftkings-fa...
Re: The implosion of the daily fantasy industry
#5i don't know how accurate the article is but arguable the dfs industry is shrinking. almost no one other than fanduel/draftkings exists on a scale to possibly make a profit. and then you have state governments trying to ban them or charge them with crimes.
the biggest long term problem i see (and the article partially addresses) is all these pros bumhunting the low-stakes games because there's no reason not to. it doesn't take any additional time nor mental focus to join some microstakes games like it would if you were playing online poker.
anyone who play dfs, how are money withdrawals from the site? is it relatively quick/easy to get money out of your accounts? otherwise i definitely see that as a huge risk just like it was towards the end of the online poker boom.
Re: The implosion of the daily fantasy industry
#6With user acquisition costs of "$190 per user for DraftKings and $110 for FanDuel" [0], what, besides long term casino-style gambling addiction, can hope to recover the costs? And unlike casino gamblers, don't 'bro-classic' people tend to grow out of these things after a while? [0] http://www.usnews.com/news/articles/2015/10/30/draftkings-fa...
Change $190 to $500k and I think you just described venture capitalism!
Re: The implosion of the daily fantasy industry
#7For what it's worth, Fortune writer Dan Primack said on Twitter, "There is an amazing amount wrong with this ESPN piece on DraftKings/FanDuel. Awful." https://twitter.com/danprimack/status/768463010503467009 Then followed up: "ESPN and @DVNJr write that daily fantasy has 'imploded.' Really? Both leading players are still operating. [...] True neither FD nor DK are profitable. But they are young tech startups. Lack of…
Lack of profitability isn't their problem, lack of ability to continue operating anywhere legally is.
Re: The implosion of the daily fantasy industry
#8For what it's worth, Fortune writer Dan Primack said on Twitter, "There is an amazing amount wrong with this ESPN piece on DraftKings/FanDuel. Awful." https://twitter.com/danprimack/status/768463010503467009 Then followed up: "ESPN and @DVNJr write that daily fantasy has 'imploded.' Really? Both leading players are still operating. [...] True neither FD nor DK are profitable. But they are young tech startups. Lack of…
Lack of profitability isn't their problem, lack of ability to continue operating anywhere legally is.
> Lack of profitability isn't their problem, lack of ability to continue operating anywhere legally is.
From the POV of investors, I'd say that the former is the critical problem, the latter is merely the cause of the problem.
From other POVs, that might be different.
Re: The implosion of the daily fantasy industry
#9For what it's worth, Fortune writer Dan Primack said on Twitter, "There is an amazing amount wrong with this ESPN piece on DraftKings/FanDuel. Awful." https://twitter.com/danprimack/status/768463010503467009 Then followed up: "ESPN and @DVNJr write that daily fantasy has 'imploded.' Really? Both leading players are still operating. [...] True neither FD nor DK are profitable. But they are young tech startups. Lack of…
Does anyone know what Primack's axe to grind is? Because it's such a strong, emotional objection, I suspect there's more to it than a dispute over the facts and analysis.
Re: The implosion of the daily fantasy industry
#10It really is a game of skill. And that's killing the industry. The good players, with a big bankroll and computer support, can win. Everybody else is a sucker. Like the stock market. So the suckers are bailing.