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Deadpin: Fan Duel/Draft Kings are broke


PromoTheRobot

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Guess I can stop kicking myself for turning down that FanDual interview a few yeas ago.

 

Seriously, this would be a stunning turn of events. A business like that needs to keep customers on the hook so their LTV is several times what they paid to acquire them (with all those ads). If they have not figured out how to retain customers it likely has a lot to do with that 90% losers stat. Online poker spread the wealth much more effectively.

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I wonder whether (or how much) this relates to the NFL's lower television ratings so far this season?

No, had to do with the fact that the vast majority of games were won by 1% of total players, especially the big payout games. In effect, they have a huge "takeout" ...when you dont get enough churn of the money, eventually the vast majority of players get broke!

 

Horse tracks finally figured out lower the takeout was good for business...these guys will too

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No, had to do with the fact that the vast majority of games were won by 1% of total players, especially the big payout games. In effect, they have a huge "takeout" ...when you dont get enough churn of the money, eventually the vast majority of players get broke!

 

Horse tracks finally figured out lower the takeout was good for business...these guys will too

 

Agree.

But also, if fewer people are playing then fewer people care about games that don't involve their particular team, no? If any of the lower viewership is due to reduced fantasy participation, then it is probably in the League's benefit to have the companies do well. Otherwise the next T.V. deals won't be as lucrative, etc., etc.

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Agree.

But also, if fewer people are playing then fewer people care about games that don't involve their particular team, no? If any of the lower viewership is due to reduced fantasy participation, then it is probably in the League's benefit to have the companies do well. Otherwise the next T.V. deals won't be as lucrative, etc., etc.

.

That's a good point on the fantasy and TV ratings. Do RedZone ratings get included in any kind of number?

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That's a good point on the fantasy and TV ratings. Do RedZone ratings get included in any kind of number?

 

I don't think so. Red Zone is an NFL product and you need to subscribe to it.

I think it has been around long enough for the damage it does to the networks to be boiled into the numbers. Here is an article I found on it from 3 years ago. http://www.forbes.com/sites/tomvanriper/2013/09/09/is-red-zone-hurting-nfls-network-ratings/#3c9446b32f6e

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Perhaps companies are hiding money so they do not need to pay fines wanted by some states.

Considering that much of the money was earned by employees of opposite companies who not are not allowed directly to compete (many are probably using accounts in other family member names) it does not surprise me. It was structured much like MLM.

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I think it's the lack of transparency in online gambling. You can never be sure you aren't getting cheated. I used to play online Texas Hold'em and that was an issue.

It took me a long time to convince my dad that online poker was a bad (dumb) idea. I'm still not sure he understands.

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