DFS Operators Record Sixth Consecutive Weekly Drop In Fees
The current legal battle in New York headed by Attorney General Eric Schneiderman has resulted in FanDuel exiting the New York market. Rivals DraftKings are defiant at the moment and are continuing to operate in New York until the legal situation forbids them to do so.
The ongoing crisis in the daily fantasy sports market in the last few months has been taking its toll and it comes as no surprise that for the sixth straight week DFS activity has fallen. According to SuperLobby.com GPP in week 11 of the NFL were down for both FanDuel and DraftKings. FanDuel were hit harder largely because of their decision to pull out of New York.
DraftKings reported fees of $20.4m in Week 11 NFL which was down slightly (0.25%) from week 10.On the positive side DraftKings recorded their best margin performance to date for the NFL season with payouts falling to $18m which translated in a 11.6% margin.
FanDuel’s decision to abide by Eric Schneiderman’s cease & desist order meant their NFL GPP fees fell by $1.1 million to $15.9m. Their margin were 10.3% with $23.6m taken in fees and $21.2 m paid out.
Yahoo who has we reported were the latest player to join the hotlist of DFS operators being investigated recorded a drop of 5% in GPP fees in Week 10 to $810k. The good news for them was that they posted positive revenues for only the second time this season with margins improving to 9.6%.