Has daily fantasy sports business slowed?
News on 20 Oct 2017
News on 20 Oct 2017
The online gambling information site Legal Sports Report carried an interesting article this week based on official figures from the New York State Gaming Commission which appear to show that the daily fantasy sports sector is slowing down and may have plateaued.
Using a freedom of information request, LSR obtained figures from the Commission for the period September of 2016 and ending in August of this year.
The New York figures are a sound guide because most DFS companies, including market leaders DraftKings and FanDuel are registered in the state and have monthly reporting obligations. FanDuel and DraftKings are widely assessed as dominating 90 percent of DFS activity in the United States.
Overall revenues for the period were $327,326,945.($3,27 billion), with the most successful month November 2016, when deposits reached $419 million. At the other end of the scale, the least successful month, with $164.5 million, was July 2017.
For the 12-month period, DFS sites paid more than $4.8 million in tax to the state, which taxes GGR generated by DFS operators at 15.5 percent.
New York players generated as much as ten percent of the total recorded.
LSR’s numbers gel with estimates by consultants Eilers & Krejcik Gaming, which predicted handle for the 2016 calendar year at about $3.2 billion, with revenues of $350 million, indicating a slowing of the DFS juggernaut in the first eight months of 2016.
