Daily fantasy sports

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The concept of the daily fantasy sports game is relatively new. It takes the traditional fantasy sports model and compresses it into a daily, and sometimes weekly, game.

History[edit]

Daily fantasy sport is a new[when?] niche in the fantasy sports industry. Like traditional fantasy sports, players draft a team of real world athletes who then score fantasy points according to set scoring rules. However, instead of being stuck with the same team through a whole season, daily fantasy sports contests last just one day (or in the case of NFL or NASCAR, one weekend). Daily fantasy sports is quicker and more numbers-driven. Daily fantasy sports websites do not compete for the same players as traditional sports games, but instead market themselves as complimenting traditional fantasy sports.[1]

Legality[edit]

The legality of daily fantasy sports games is the same as that of season-long fantasy sports. In most US states, fantasy sports (including daily fantasy sports) is generally considered a game of skill and therefore not considered gambling. However, some states, such as Arizona, Montana, Louisiana, Iowa and Vermont, either use a more restrictive test of whether a game is one of skill or have specific laws outlawing paid fantasy sports.

At a US federal level, fantasy sports is defined and exempted by the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). The bill specifically exempts fantasy sports games, educational games, or any online contest that "has an outcome that reflects the relative knowledge of the participants, or their skill at physical reaction or physical manipulation (but not chance), and, in the case of a fantasy or simulation sports game, has an outcome that is determined predominantly by accumulated statistical results of sporting events, including any non-participant's individual performances in such sporting events..."[2]

However, all prizing must be determined in advance of the competition and can not be influenced by the fees or number of participants. To be compliant, fantasy sports must follow the rule that: "prizes and awards offered to winning participants are established and made known to the participants in advance of the game or contest and their value is not determined by the number of participants or the amount of any fees paid by those participants." [3]

The formal definition of fantasy sports within UIGEA stipulates that the outcome of a fantasy game must be dependent on multiple sports events (currently multiple trains of thought on if this means multiple games or can also include multiple statistical events within a game) but explicitly does not define the period over which the game must be played. The enactment of UIGEA gave the first legal definition of fantasy sports around which operators could then develop games. This resulted in the emergence of daily fantasy games, which first appeared in late 2007.

Daily Fantasy Sports Apps[edit]

While daily fantasy websites are being created on a daily basis, apps are much more difficult to produce. A few of the more popular daily fantasy sports apps include SideLeague, Swoopt & Rivalry Sports. The daily fantasy apps are even more focused on easy to pickup, quick fantasy contests for fun and money. SideLeague in particular is focused on providing its users with an easy way to compete against friends in multi-day fantasy contests with no salary cap and only 25 participants per contest. SideLeague created a proprietary algorithm that automatically pairs friends looking to play the same contest without prior notification or an invitation code.

Daily fantasy websites[edit]

There are many daily fantasy websites that have sports like baseball, football, basketball, cricket and golf. FanDuel is considered the "industry's largest site"[4][5][6] and will pay out over $400 Million in cash prizes during 2014.[7] On July 14, 2014 DraftKings announced the acquisition of DraftStreet, merging the websites and migrating all users to DraftKings.[8] On August 25, 2014, DraftKings announced a $41 million round of funding to help market their site to future players. In response to this on September 2, 2014, FanDuel announced that they had received $70 million in another round of funding.[9] Draft Team is the only company whose sole business is daily fantasy sports that is publicly listed. They trade under the symbol DTS on the TSX Venture exchange in Canada. DraftDay is the other publicly traded company in the industry and currently the 3rd largest in the space. They are listed on the New York Stock Exchange (NYSE) under the ticker symbol MGT. On 10/08/2014 NBC Sports announced an expansion to its involvement in Daily fantasy sports through the creation of a partnership with Rotogrinders for daily fantasy content.[10] Fanduel and DraftKings combined have an enormous market share of the daily fantasy industry. Their combined revenues make up for over 90% of the market's revenue.[11] LateSwap aggregates daily fantasy sports content from across the web. Popularity of cricket globally has spawned quite a few sites offering Fantasy Cricket. Dream11, which won the Red Herring Global 100 award in 2011, is the World's No.1 Fantasy Cricket Game. Dream11 runs on the Freemium model since December 2011.

Daily fantasy cricket[edit]

Cricket is a very popular sport in India and its neighboring countries. A fantasy cricket industry has developed around cricket which offers enthusiasts to play fantasy cricket on a daily basis. The cricket season in India lasts from October to May with matches being played daily, which gives an opportunity for playing daily fantasy cricket. This concept is quite popular during the Indian Premier league, during which matches are being played daily for 6–7 weeks.[12]

One of the new variation is real-time fantasy, where instead of picking a team before a match starts, you make predictions on how many runs will be scored in the next over or how many runs a batsman scores etc. and give points for correct predictions.

Daily fantasy soccer[edit]

StatClash[13] and Draftstreet (later acquired by DraftKings[14]) were the first companies to offer Daily Fantasy Soccer. StatClash launched the first soccer format for the Barclays Premier League and MLS in April 2013 [15] and Draftstreet was the second company to enter the market, launching during the 2014 World Cup. FanXT[16] and Draft11[17] launched in Q4 of 2014. SoccerLords.com, Fanfeud.co.uk, PremierPunt, Fanaments, Epic Eleven, Mondogoal and FantasyPosh are the only soccer-exclusive daily fantasy platforms.

Women's Sports[edit]

Similar to longer-form fantasy formats, daily fantasy tends to focus on men's leagues. Mondogoal[18] is the first daily fantasy platform to support a women's league with its complete coverage of the 2015 FIFA Women's World Cup

References[edit]

  1. ^ DiFino, Nando (2010-03-05). "Everyday Fantasies". Wall Street Journal. Retrieved 2010-11-22. 
  2. ^ Longley, Robert (2006-08-22). "Fantasy Sports Not Gambling, Bill Declares". About.com. Retrieved 2007-11-01. 
  3. ^ 31 U.S.C. § 5362(1)(E)(ix)
  4. ^ Bales, Jonathon. "Here’s What It Takes To Make A Living Playing Fantasy Sports". 
  5. ^ "CrunchBase - FanDuel". 
  6. ^ "Rotogrinders". 
  7. ^ "FanDuel About Page". 
  8. ^ "Daily fantasy sports site DraftKings acquires DraftStreet". 
  9. ^ "FanDuel Raises $70 Million". dfsreport.com. 
  10. ^ Heitner, Darren. "NBC Sports Expands Presence In Daily Fantasy With RotoGrinders Partnership". 
  11. ^ Fischer, Ben (2014-11-17). "FanDuel vs. DraftKings: Are we seeing the future of sports wagering?". Biz Journals. New York Business Journal. Retrieved 2015-01-21. 
  12. ^ "Top Websites for Fantasy Sports". Web Analytics. 2015-05-06. Retrieved 2015-05-06. 
  13. ^ http://www.pr.com/press-release/486340
  14. ^ "DraftKings Doubles Down With Draftstreet Acquisition". DFSReport.com. 
  15. ^ http://worldsoccertalk.com/2013/11/07/statclash-product-review-play-win-and-earn-money-by-playing-epl-and-mls-fantasy-soccer/
  16. ^ "FanXT Offers Daily Fantasy Soccer For The 3 Million Fantasy Premier League Fans". Reuters.com. 
  17. ^ http://worldsoccertalk.com/2014/11/18/draft11-com-the-new-and-exciting-way-to-play-fantasy-soccer/
  18. ^ "Mondogoal to Launch First-Ever Fantasy Soccer Platform for 2015 Women's World Cup". Mondogoal.com.