The Daily Item, Sunbury, PA

Fantasy Front Office

June 16, 2014

Want to print money? Start and run a successful daily fantasy site

FanDuel, the king of daily fantasy sports sites, released their financials dating to 2011.

While I normally try to give you info to help you post elite lineups, this is too interesting to not share.

Some people say daily fantasy sports is the future of the game. As a fan of daily games (weekly in football), I'm a little biased. But if DFS isn't the future of the game, it's at least one of the fasting growing sectors.

In the first quarter of 2011, FanDuel collected $1.356 million in entry fees and paid out $1.221 million for a profit of $135,360. At the time, they site had 3,158 paid users.

Jump forward to the first quarter of 2014 and the site has grown so much that I don't trust my own percentage gained math. Try $62.712 million in entry fees, $57.335 million in payouts for a $5.376 million profit. They're number of paid users grew from three grand and change to 110,032.

And the money train isn't stopping. They collected more than $31 million in entry fees in April alone and another $26 million and change in May.

This is just FanDuel. I've played at Draft Kings, Draft Street and Draft Day. Every site has their own personality. While they probably aren't turning as much of a profit as FanDuel, there are a lot of DFS competitors in the field on any given day. Playing on multiple sites has many advantages. Some of the best fantasy players are now making a living off their DFS winnings.

Think about that one for a bit.

FanDuel releasing this information seemed a little unorthodox -- very transparent, especially considering the site profits by skimming a commission off entry fees -- the rake, in gambling terms. It proves the site isn't afraid to open it's books to customers and investors, and reveals the serious growth in this young part of the fantasy sports industry.

Here's a link to the post on their blog.

Here' s link to the full financial report.

1
Text Only
Fantasy Front Office