Yahoo Already Under Fire From Daily Fantasy Players
Yahoo’s much publicized entry into the daily fantasy sports arena recently should have got the powerhouses in this sector worried. DraftKings and FanDuel are still the dominant players in this market and Yahoo with all its size and influence may have just shot themselves in the foot already. On Friday they announced a Major League Baseball contest that Yahoo “guaranteed to run” even if they failed to math the expected 10k entries. Alongside the guarantee was also the promise of a fixed prize pool of $22k which the entrants would receive.
The contest saw less than the 10k expected and managed only to attract 2,994 entrants whom Yahoo paid out $7,868. It is here where some players were furious at Yahoo for not paying out the full $22k which was promised. Although these numbers are peanuts for the likes of Yahoo and it is early stages, the negative publicity this has received on social networks is just one of the pitfalls that Yahoo will have to be careful of if they want any chance of competing with the big boys DraftKings and FanDuel.