In the wake of a handful of state Attorney Generals, Gaming Commissions and politicians cracking the whip on the explosive Daily Fantasy Sports industry, SuperLobby.com data has shown that industry-wide entry fees for DFS guaranteed tournaments has continued to fall.
Entry fees fells 5% in Week 8 from the previous week in the NFL.
CalvinAyre.com notes:
Both DraftKings and FanDuel took in more money than they paid out in Week 8 but continued the slide from their Week 5 peak. Total number of entries in the sites’ Week 8 marquee NFL contests fell by 30k at DraftKings and by 20k at FanDuel.
Across all their NFL guaranteed prize pools, DraftKings took in just over $21.5m in entry fees, down from $22.7m in Week 7 and from $25m in Week 5. FanDuel took in $18.3m, down from $19.1m in Week 7 and from $20.6m in Week 5.
Yahoo, which entered the Daily Fantasy Sports market over the summer, reported declining fees from $1.6m to $1m over this time period. Yahoo’s NFL Sunday Baller contest posted a $120K overlay with a reduced Week 9 guarantee resulting.
Attorney Generals in New York, Massachusetts and Florida have each started probes into the sector and its close affiliation to gambling while the Gaming Commission in Nevada has demanded that all Daily Fantasy Sports sites stop operating in the Silver State.
The actions come on the heels of a widely publicized scandal involving possible insider trading at DraftKings, allegations that company and its legal counsel of adamantly denied.
– Aaron Goldstein, Gambling911.com