4 ms·

I know nothing about FanDuel and DraftKings, or sports betting in general. Do FanDuel and DraftKings only make money on fees, or are there also situations where

I know nothing about FanDuel and DraftKings, or sports betting in general. Do FanDuel and DraftKings only make money on fees, or are there also situations where , like in a Casino, you're playing against the house? Also, I bet there are SWE's from FanDuel and DraftKings on HN. No judgement I would love to hear how you see things from the inside.

woooooo 4y ago
Everyone's playing against the house, but the house sets lines and odds with a goal of getting 50% of bettors on either side of the bet for a guaranteed profit.
- edmundsauto 4y ago
  This is a clean narrative and a reasonable starting assumption, but not necessarily accurate. House bookies are trying to maximize their earnings, not limit themselves to the rake. For example, certain teams have fans that bet on the team as a show of support rather than betting wisely. The house will identify these positions so they can take advantage, rather than letting the other side of the bet make most of the cash on bad bets.
  - jamesfinlayson 4y ago
    Yep big gambling companies have a lot of analysts on staff - all working on improving models to squeeze more money.
iainmerrick 4y ago
Until sports betting was legalised in the US, FanDuel and DraftKings specialised in fantasy football, where you pay to enter competitions against other players. The winning players split the prize money, the company takes any money left over. For legal reasons the prize pot was fixed so if not enough people entered a contest the company would have to eat the loss. That was arguably not sports betting, therefore legal, because it was a game of skill against other players. The big difference with sports betting is that you’re now playing directly against the house. Their profit depends on how well they calculate their betting odds. Arguably it’s still a game of skill, but it’s obviously pretty stacked in the company’s favour.
- nyjah 4y ago
  Until sports betting was legalised in the US, FanDuel and DraftKings specialised in fantasy football Not to be pedantic, but they specialized in 'daily fantasy', which differs from general 'fantasy football'. In daily fantasy, you are given a budget, players are given a value and you draft every week. In regular fantasy football, you draft once at the beginning of the year and manage that team for the rest of the season.
  - iainmerrick 4y ago
    Pedantic is good! Thanks for the clarification.

woooooo 4y ago

Everyone's playing against the house, but the house sets lines and odds with a goal of getting 50% of bettors on either side of the bet for a guaranteed profit.

edmundsauto 4y ago
This is a clean narrative and a reasonable starting assumption, but not necessarily accurate. House bookies are trying to maximize their earnings, not limit themselves to the rake. For example, certain teams have fans that bet on the team as a show of support rather than betting wisely. The house will identify these positions so they can take advantage, rather than letting the other side of the bet make most of the cash on bad bets.
- jamesfinlayson 4y ago
  Yep big gambling companies have a lot of analysts on staff - all working on improving models to squeeze more money.

iainmerrick 4y ago

Until sports betting was legalised in the US, FanDuel and DraftKings specialised in fantasy football, where you pay to enter competitions against other players. The winning players split the prize money, the company takes any money left over. For legal reasons the prize pot was fixed so if not enough people entered a contest the company would have to eat the loss. That was arguably not sports betting, therefore legal, because it was a game of skill against other players. The big difference with sports betting is that you’re now playing directly against the house. Their profit depends on how well they calculate their betting odds. Arguably it’s still a game of skill, but it’s obviously pretty stacked in the company’s favour.

nyjah 4y ago
Until sports betting was legalised in the US, FanDuel and DraftKings specialised in fantasy football Not to be pedantic, but they specialized in 'daily fantasy', which differs from general 'fantasy football'. In daily fantasy, you are given a budget, players are given a value and you draft every week. In regular fantasy football, you draft once at the beginning of the year and manage that team for the rest of the season.
- iainmerrick 4y ago
  Pedantic is good! Thanks for the clarification.