Eilers & Krejcik Gaming published new projections for the daily fantasy industry in its 2016 report, and not surprisingly, the picture isn’t quite as rosy as it once was.
The full report is available only to subscribers, but in a truncated version, the report said “it is easy to imagine a number of wildly divergent trajectories for DFS based on political, legal, economic, business model, consumer, and market pressures.”
LegalSportsReport has more info on the full report, including a breakdown of the possible scenarios for the next four years. Most notable: while last year’s report predicted $18 million in entry fees by 2020, the new best-case scenario is around $14 million with the base case sum forecast at around $8 million.
Citing analyst Adam Krejcik, VentureBeat says DraftKings and FanDuel have now lost their unicorn status, as their value has likely dropped below $1 billion.
2016 could be the industry’s make-or-break year.
“The DFS industry is at a crossroads,” Krejcik wrote. “This year will undoubtedly mark a year of change and transformation. We are witnessing a monumental shift from the status quo, at least from a legal standpoint, which will impact the underlying market dynamics and competitive landscape.”
AROUND THE WEB
- In its latest court filing in New York, DraftKings argues that DFS has been legal for years and says a loss in its case against state Attorney General Eric Schneiderman could put the company out of business.
- Attorney/industry observer says FanDuel and DraftKings are playing with fire in Florida.
- Yahoo talked with South Point’s Jimmy Vaccaro about handicapping the presidential election (for entertainment purposes).
- The worst bad beats of the weekend.
- Mark Cuban, who has invested in the industry, wrote a pro-DFS op-ed for USA Today.
- Tiger Woods’ agent denies report of setback.
- Blue Jays slugger Jose Bautista doesn’t believe in a “hometown discount.”
LOOK WHO’S TALKING
“In 2013, the (Division of Gaming Enforcement) already authorized our casinos to engage in fantasy sports play. We have regulations on the daily fantasy sports side and have authorized our casinos to engage in that action. They have not chosen to do so. I don’t know why. —Dave Rebuck, director of New Jersey DGE, in a wide-ranging interview with Gambling Insider.
TWEETS OF NOTE
Odds to winthe 2016 Election: Clinton -120 Trump +325 Rubio +400 Sanders +800 Cruz +3300 more> https://t.co/3wo2QEKp9x — Dave Mason (@DaveMasonBOL) February 22, 2016
About 90-95% of microdiscectomies – like #Tiger had – are successful. He got unlucky. Not to say career’s over, but no imminent return. — Robert Lusetich (@RobertLusetich) February 22, 2016
#DFS breakdown of users as of 4 months ago: NY 10.2% CA 9.6% IL 6.5% TX 7.0% FL 6.1% PA 5.1% — Darren Heitner (@DarrenHeitner) February 22, 2016
ODDS & ENDS
- SportsBookReview published its top five online books, as voted on by vistors to its forum.
- Delonte West spotted loitering outside a Houston Jack-in-the-Box, reportedly shoeless.
- Kyrie Irving alleges bedbugs, forgoes possibility of Hilton endorsement.
- The 76ers were the big losers in that nixed three-way trade involving the Rockets and Pistons.
ODDSMAKER’S TAKE
“Every year, there are always a lot of tickets. Now that they’re good, you can basically double that. You get the people that are betting them just because they’re the Cubs and the people who are betting them because they actually think they’re going to win. That’s increased the ticket amount.” —MGM assistant manager Jeff Stoneback on the betting action that has pushed the Cubs as low as 4/1 odds to win the World Series at some books.