Daily Fantasy Scandal Explodes

Yahoo! Business Insider through ESPN.

We're looking at the end of Daily Fantasy.  No doubt about it now.  Just a matter of when.

The scandal at DraftKings has exploded in mammoth proportion today. 

According to Cork Gaines' report, Darren Rovell, ESPN's sports business writer, took Fan Duel's own information and has concluded that DraftKings employees playing at Fan Duel have won over $6,000,000 at the site -- though it is not clear whether that is before their entry fees were taken out or after.

Couple that with the Sports Business Daily report referred to in Gaines' article (by Ed Miller and Daniel Singer), and one can see there isn't much future left unless you basically want to throw your money away.

Why?  Try some of these gems.

• ELEVEN PLAYERS accounted for 17% of all entry fees for the first half of the baseball season.  Each of them averaged $2,000,000 worth of such fees.

Does anyone still want to claim that this Daily Fantasy phenomenon is any more than one big fat scam between the companies?  Is it that hard to effectively concluded that most, if not all, of these 11 players were probably using money from one company to play at another?

• The average of these 11 multi-million dollar players was a profit of $135,000.  That means, over the course of the first half of the baseball season, these 11 players accounted for over $23,000,000 in prize money.  The top player made $400,000 on a $3,000,000 entry-fee investment.
• Expanding this to the rest of the top 1.3% of all players surveyed in this time period, they averaged $9,100 in entries and took a profit of $2,400!  Between these two groups, that's 91% of all the profits in Daily Fantasy, to just 1.3% of the players who were averaging over $9,000 over a three month period (and up!).
• The "big fish" -- those who lose money and have no business playing -- averaged $3,600 over this period, and lost over a grand in so doing!

There is, now, no way that anyone with possession of this information should invest one more red cent into the Daily Fantasy juggernaut.  The fact is:  Unless you are affiliated with one of these companies, you will lose.

Do you honestly believe that that many people have $36,000/year (much less $8 million!) to throw away like that???

REALLY?

These people are working for the damn companies!  Wake up!!