The NFL season has been a mixed bag for daily fantasy sports sites. Ongoing legal challenges aside, the sites have shown growth, but not quite to the levels that were forecast.
DraftKings and FanDuel have performed relatively well; according to figures from by data analytics provider SuperLobby.com, the industry leaders have posted positive net revenue for the majority of the season, even as the marquee prize pools continue to shrink.
But the second-tier sites have struggled. Yahoo has had one week of positive net revenue in its guaranteed NFL contests, no other sites have had any.
While revenue from cash games could cover the losses, consistent overlay at smaller sites is less than encouraging. At least two sites have folded in the last month, with DraftDay acquiring SportsTradex and TradeSports announcing its closing this week.
Early NBA returns are more encouraging, especially for second-tier sites.
NFL remains the most popular sport in DFS, with the volume of play in guaranteed Sunday contests doubling a full week of NBA GPPs on some sites. But while smaller operators have failed to recoup their prize pools in NFL contests, more are showing positive net revenues in the NBA.
The primary difference is the size of the GPPs, according to SuperLobby CEO David Copeland. Whereas sites have used massive contests and the resulting overlay as promotional tools during the NFL season, the size of guaranteed NBA contests have been set more realistically, based on the sites’ ability to fill them.
That strategy seems to fit with the micro-trend shown over the course of the NFL season, in which GPPs—though still a primary driver of traffic—have grown less popular in relation to cash games.
In this week’s “NBA Lowdown,” SuperLobby reports that four of the eight sites it monitors posted positive net revenues from guaranteed contests from Nov. 11-17.
Also noteworthy, DraftKings total entry fees and net revenue from NBA GPPs continue to rise. Entry fees received were up 9 percent from last week, and net revenue has climbed each week of the NBA season.
*Note: All FanDuel data includes guaranteed contests and cash games; other sites’ figures include guaranteed contests only.
|Operator||Total Entry Fees In ($)||Total Prizes Out ($)||Effective Rake %|
All data supplied by SuperLobby.com