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I don't think the 10% fee will be sustainable in the long run. Price competition will be inevitable once the manic growth phase is over.
by waterlesscloud 11y ago
I don't think the 10% fee will be sustainable in the long run. Price competition will be inevitable once the manic growth phase is over.
- ericdykstra 11y agoThe players who care more about the fees are the better players who see it as cutting directly into their ROI. If only top players move to low-fee sites, that doesn't help their ROI much, does it? Casual sports betters prefer sites with convoluted bonus and rakeback programs to sites with low fees. I think casual DFS players will stick to the names that are on the commercials and the sites with the prettiest and most trustworthy-looking UI. I believe something similar happened in poker, where players would go to the sites where the worst players were, and not where, player-strength being equal, they would make the most money.
- acconrad 11y agoExcept there are a ton of competitors and it's already become an oligopoly. FanDuel and DraftKings alone have accounted for 95% of the DFS revenue as of 2015, and just acquired the two other biggest competitors in the space (DraftStreet and StarStreet). Big prize pools drive harder than lower fees.