DFS Sites Record Second Consecutive Drop In Entry Fees
It came as no surprise that daily fantasy sports sites recorded their second consecutive decline in entry fees. As we have reported extensively the last few months have been a publicity and marketing nightmare which were sparked off by the insider trading leak controversy. Since then it has been blow after blow for the DFS sector with both legislators and law enforcement agencies declaring they will probe the industry to see if there is any practices that are illegal.
Data released by SuperLobby.com show that total guaranteed prize pools for Week 7 in the NFL were down for DraftKings from $22.9m in week 6 to $22.7m in week 7. FanDuel were hit harder and were down to $19.1m in week 7 from $19.9 m in week 6.
The good news was that the number of entries increased with DraftKings reaching 4.02m from the 3.76m while FanDuel recorder an increase of 3.4 m from the Week 6 number of 3.3m. Despite the volatile period that DraftKings and FanDuel are experiencing both players have chosen to maintain their current guarantees for Week 8.
The big question everyone is asking is just how much more bad publicity and scandals can the DFS sector take. Both DraftKings and FanDuel have restricted their staff from participating in any DFS competitions which has contributed to the loss in revenues as they were among the high rollers in the DFS market.