Daily Fantasy Sports websites like DraftKings are an awesome idea. Instead of managing a fantasy sports team throughout the entire season, you can draft a bunch of players on the day of the game and make money, if your team scores more points on a given day. If you lose then the next week hopefully you have a better draft.
Recent study of Daily Fantasy Sports sites show that 91% of all profits won went to 1.3% of players, 85% of all players on daily fantasy sports were losers.
How do the DraftKings operate?
There is a tiny percentage of DraftKings players who are using sophisticated algorithms which help them draft consistently superior teams. Some Daily Fantasy Sports players are professional gamblers who spend hours a day thinking with homemade algorithm design to get an edge over all the other suckers who are just picking players trying to use their gut instincts.
Fantasy sports are dominated by numbers with sophisticated algorithms. Millions of fantasy players wonder, after it was revealed that draftkings employee won
$350000 in a weekly NFL contest on rival Fan Duel. The same employer had access to company data that gave him an unfair advantage. If a lot of fans start to wonder whether fantasy sports is a scam, the multi billion industry could go bust with Virtually no government oversight.
So is the DraftKings Rigged?
You cannot win no matter how lucky or good you are when the owners and employees of these companies are using the line ups.
The New York Attorney General had announced a probe of the practices at DraftKings-the highest profile player in the business. Draftkings took the unusual step of issuing a joint statement when the scandal broke . They said they were committed to the integrity of the games and a temporary ban was instituted on their employees playing fantasy games for money.
The company issued a statement to say they have banned their workers from playing games for currency and will take measures to ensure their customers not to work for competing fantasy sites before they are allowed to play.
One of the best expanding companies in the world said, “it’s our job to ensure that as our company expands, so does our ability to ensure that our friends can be confident in the integrity and sanctity of every game, everyday.” The number of fantasy players has indeed soared 78% in the past 5 years to nearly 57 million in Canada and the US. Many players play private games with a group of friends, the fastest growing part of the industry are big money contests which are played online by a huge pool of strangers. Fans select from real players in a draft or an online selection process to gather a fantasy team. The real game statistics are then compiled and compared to see which fantasy team has done the best.
Conclusion:
Draft King has recently raised about dollar 300 million from investors including the NBA view here for details, major League baseball, owners of both NBA and NFL teams and major media companies including CNN parents Time Warner, which has a stake in FanDuel .