Draft Kings Spent 25 Million Last 30 Days Advertising

[FR3SH like UgHH]

The folks at Bloomberg Businessweek went in depth to show you just how screwed you are if you think you have a shot at winning money on anything resembling a consistent basis.

While any player might get lucky on the back of a handful of entries, over time nearly all of the prize money flows to a tiny elite equipped with elaborate statistical modeling and automated tools that can manage hundreds of entries at once and identify the weakest opponents. ...
Analysis from Rotogrinders conducted for Bloomberg shows that the top 100 ranked players enter 330 winning lineups per day, and the top 10 players combine to win an average of 873 times daily. The remaining field of approximately 20,000 players tracked by Rotogrinders wins just 13 times per day, on average. ...
The money-losing players tend to get lucky, win a few times, reinvest the prize money, and eventually lose.

[Ghenghis Kahn]

Most people play for fun I get that but I just don't like the fact everywhere you turn they're trying to shove it down your throat. And this is coming from a guy that loves fantasy sports.

[sshz]

There were some times over last weekend that DraftKings ads were played back to back.....

[sshz]

There were some times over last weekend that DraftKings ads were played back to back.......with that being said, I wagered in a $3 contest and ended up 3055 out of 33,000+ and cashed $8!!! WINNER.



It's fun, but you have practically no chance against the pro's doing it. I had a good game with 158 points, but was still 90 points behind the winner. If you are not playing multiple entries (like 10-20 minimum), you have zero chance of being in the top 1000-2000.

Lastly, they do run contests that allow ONLY SINGLE ENTRIES, which are the only games I play.

[agendaman]

i have suspected collusion for some time now ready to enter any class-action lawsuit

[jjgold]

Players will realize its a waste of time

[TheMoneyShot]

DK owner will be the next Bill Gates

[jtoler]

Just seems no fun to me trying to predict a player's stats or how he's gonna do vs. others at his position on a given week. Fantasy shows come on the radio and it just sounds funny when I hear people calling in telling the host they are inserting such and such player that week. Im guessing the average fantasy player doesn't do the gambling on sides thing.

[Snowball]

this is the window to full legalization.. first, its daily competitions,
then it's competitions on team scores.. then it's team scores with
a handicap.. just a matter of when... money talks in the U.S.A.

[jtoler]

this is the window to full legalization.. first, its daily competitions,
then it's competitions on team scores.. then it's team scores with
a handicap.. just a matter of when... money talks in the U.S.A.

I agree.

[jonal]

lotteries booming all over usa

jj that's my point. millions(?) of everyday ppl play the lotto. Why? Seems like most realize playing the lottery is flushing money down the toilet. Its an entertainment expense, people like the sweat, hope the get lucky. I believe its the same with fantasy. Reminds of when I walked into a 7/11 and there was a mailman in there scratching tickets, whining about how he spent $200 over the last week on lotto tickets, in there buying another $40 worth of losing scratch offs.

Fantasy is only getting bigger. Would love to see a study that analyzes the $ amount of deposits to fantasy sites vs ant of $ spent on lotteries going forward. Wanna see if average joe is spending less on lottorties and more on Daily Fantasy as its promoted more on tv and gets even bigger. I

[TheMoneyShot]

this is the window to full legalization.. first, its daily competitions,
then it's competitions on team scores.. then it's team scores with
a handicap.. just a matter of when... money talks in the U.S.A.

I agree.

The funny thing is... we all know what's going on. But the govt doesn't? They can't be this blind.

Commercials on every network. Draft King's Bus on Fox NFL Pregame Sunday's. Draft King's advertisements at Red Sox Home Games. Shi#$ getting out of hand. Absolutely ridiculous. More money pumped in this drafting than Ford and GM advertisements.

This guy has PayPal working for him. The amount of money coming in for DK would blow your mind. Like I said... "low overhead" in business is the name of the game. DK has a very low overhead. The theory in business is... if you are spending 25 mil 30 mil in advertising.... 50 mil to 60 mil should come right back in the business. A lot of coin for a no brainer enterprise.

[jonal]

Low overhead? More like no overhead. These guys have less overhead than Full Tilt and PStars. Anyone wanna chime in with the annual revenue those companies were generating during the online poker era.

Was driving around Chicago earlier today guess what I see... Huge DK billboards along what I'm sure is the most expensive area to buy a billiard along the expressway. Driving thru the south loop along cermack, on one of the biggest billboards in the city, not geared to that expressway traffic but that downtown traffic, huge FD billboard, it said something along the lines of "Chicago's biggest dfs winners are on FD" I'll snap a photo of it next time I get a chance.

[jjgold]

They're spending way too much money on advertising and it will eventually drain them

[gauchojake]

Draft Kings is in the red. Fan Duel not so sure but I doubt it. The margins are not as great as people think and there is more overhead than you think. They need to maintain the website, pay employees, cover overlays, advertise, etc. They are starting at less than 10% margins and the cash goes quickly when you drop 25 million on advertising in a month. Eventually they will be profitable assuming good player retention and that it remains legal. Currently they are not.

[jjgold]

Draft Kings is in the red. Fan Duel not so sure but I doubt it. The margins are not as great as people think and there is more overhead than you think. They need to maintain the website, pay employees, cover overlays, advertise, etc. They are starting at less than 10% margins and the cash goes quickly when you drop 25 million on advertising in a month. Eventually they will be profitable assuming good player retention and that it remains legal. Currently they are not.

good post

[SBRMAN23]

they must have a lot flowing in from diff directions. This morning hear it on the damn hip hop station they are promoting it by asking ppl to call in and give their locks wow on a music station. You are hearing this shyt everywhere you go you cant even avoid it at this pt

[jjgold]

well they are begging for money everywhere

be careful men

[JIBBBY]

Rather play the State Lotto which I don't.. Better odds of winning a 5 to 10 team parlay in a sport that you know IMO...

Draftkings is a money pit just like all the other fantasy pay sites popping up now. Just logged on to Yahoo sports and they are now trying to sell their new fantasy league. It's a joke..

These fantasy draft sites are popping up like crazy now. It's big business...

[jjgold]

Rather play the State Lotto which I don't.. Better odds of winning a 5 to 10 team parlay in a sport that you know IMO...

Draftkings is a money pit just like all the other fantasy pay sites popping up now. Just logged on to Yahoo sports and they are now trying to sell their new fantasy league. It's a joke..

These fantasy draft sites are popping up like crazy now. It's big business...

of course it is a joke

I never wasted my time because always AHEAD OF THE CURVE

[Otters27]

Just hoping sports betting will soon be legal. That way we don't have to pay all these damn fees.

[DOM_Toretto]

Draft Kings is in the red. Fan Duel not so sure but I doubt it. The margins are not as great as people think and there is more overhead than you think. They need to maintain the website, pay employees, cover overlays, advertise, etc. They are starting at less than 10% margins and the cash goes quickly when you drop 25 million on advertising in a month. Eventually they will be profitable assuming good player retention and that it remains legal. Currently they are not.

Draftkings and Fanduel are making some money on DFS, but THE REAL strategy is to get in place to be the biggest sportsbooks in the USA once sports betting is legalized within the next 5 years. They already have the infrastructure in place, and more importantly they will have the clientele in place.

DK spent $20M+ in ads last week and gained over 1Mil new user signups. At $20-25 per head thats a steal. Once sports betting is legalized soon, they will have all the users already signed up with accounts who will just click the button on a site they're already familiar with and begin betting on games.

[Ghenghis Kahn]

what makes you think sports betting will be legalized soon? i doubt it'll happen within the next 20 years.

[Ra77er]

Juice Kings would be very clever indeed Dom, good post.

Wonder if SBR could benefit from legalization in the US?

Already have a sportsbook, 12 posters, nomination ability, not to mention pizza parties.

[Goat Milk]

The top 1/5 of Fan Duel entrees get paid. That's not that tough. It's easier to win the jackpot in Fan Duel than hitting the State Lotto.

I took 2nd place in an NBA tournament on Fan Duel. There were about 20,000 people in the contest.

So I can tell you it's definitely possible. NBA is a lot easier to win because it's all based on matchups and your stats and algorithms can only tell you so much if you don't watch games and understand players.

NFL, anyone can catch a TD. Anyone can win on FanDuel.

[jjgold]

I should try for the hell of it and report back

[Cross]

And it goes on and on, unreal.

[jjgold]

Who won their hot $10

Lets here all the stories

[MUHerd37]

The Hodge Twins won $10

[jjgold]

Such false advertising saying how a few guys won millions

[Kermit]

Such false advertising saying how a few guys won millions

Someone out there is winning.

[gauchojake]

http://www.sportsbusinessdaily.com/SB-Blogs/On-The-Ground/2015/04/0403-ESPN-DraftKings.aspx

Neither DraftKings nor its chief rival FanDuel have turned a profit.

This was from April of this year. Given the advertising expenses and overlays, I am pretty sure that they are still in the red.

[TwoWays]

Can draft kings keep this up all football season? They may run north of 100 mil in advertisement by years end

[DOM_Toretto]

http://www.sportsbusinessdaily.com/S...raftKings.aspx



This was from April of this year. Given the advertising expenses and overlays, I am pretty sure that they are still in the red.

The goal is to have as many users sign up as possible. When sports betting is legalized they will already have the client base, the infrastructure and website/app to become the largest sports books in the world.

[muldoon]

Can draft kings keep this up all football season? They may run north of 100 mil in advertisement by years end

The commercials are from draft kings - but the ad spots are being paid by different affiliates.

Hence the "sign up with code word 'gridiron'" etc