Shark activity in daily fantasy sports a familiar problem
News on 5 Sep 2015
News on 5 Sep 2015
The daily fantasy sports genre appears to be facing a problem that online poker operators have had to confront in the past – too great a proportion of their business dominated by professional “sharks” equipped with skill, experience and technology, and who take advantage of the majority recreational player demographic.
In an article on Sports Business Journal this week poker expert Ed Miller and McKinsey & Co analyst Daniel Singer examined the problem using public data and found that a mere 1.3 percent of daily fantasy sport users make 40 percent of fees and deposits, but win 91 percent of user profits.
The top end of the “sharks” expert players list delivers 23 percent of fees but take away 77 percent of the profits, with some prospering with six-figure earnings.
The majority of DFS players are recreational and at 80 percent.
