Finding ways to stand out from the crowd is increasingly important for daily fantasy sports operators. Most agree its pointless for a start-up to try to take on well-funded industry leaders FanDuel and DraftKings on their own turf, so more sites are seeking ways to gain valuable differentiation. But as the field grows more crowded, that becomes difficult.
SportsTradex was one of the first sites to break from the traditional salary-cap model for roster building in DFS and its combination of contests remain some of the most unique in the space.
CEO Benjamin Lipson took some time recently to chat with DailyFantasyTalk and tell us more about his company and what he sees for the future of daily fantasy sports.
You guys offer some pretty innovative contest types; can you briefly describe some of the contests you offer and why you decided to stray from the typical salary cap format?
At SportsTradex, we strive to offer fun, unique and innovative fantasy sports contests. Our most popular game is the tiered draft format, which consists of four tiers of players from which to draft your fantasy team. There are also different available options for fantasy team size. Users may draft a larger team with fewer top-tier picks and more middle- or bottom-tier players, or they can draft a smaller team with more top tier-picks and fewer middle- or bottom-tier picks. These features create a focus on strategy and skill that makes the contests more engaging, competitive and exciting.
We also offer a Pick’em, game where players pick from head-to-head fantasy matchups and the person with the most correct picks wins. While quick and easy to play, Pick’em contests offer a unique competitive challenge. SportsTradex is leading the market in alternative game formats and our user feedback encourages us to continue to provide unique, exciting experiences to fans.
When did you guys launch and how did the company form?
SportsTradex launched at the Super Bowl in New Orleans in 2013. Super agent Leigh Steinberg and Warren Moon hosted our Super Bowl party. SportsTradex formed to deliver short-term, fun fantasy games to sports fans seeking more engagement with their favorite teams and players.
What about your site are you most excited about?
We are most excited about the ability for our site to revolutionize the way fans experience fantasy sports. SportsTradex is positioned to shape the future of the fantasy sports industry by being the leader in non-traditional, innovative contests that give fantasy players the diversity and excitement they want. We are excited to raise our profile and our prizes in the industry through the addition of better features for our users. We are planning to make several announcements and upgrades during football season.
In what ways do you think the industry will be different in the future, and how do you see SportsTradex fitting in to that future?
Daily fantasy sports is in the middle of a meteoric rise that is causing us to rethink the future of sports. The growth of DFS opens the possibility for many future trends that will augment this rise, revolutionize the fan experience, and drive new waves of business opportunity, and SportsTradex is uniquely positioned to capitalize on these trends.
A large part of the future of fantasy sports will be focused on an immersive fantasy sports experience for all sports fans. This includes live fantasy events that create exciting social environments that promote and encourage a more lively and interactive fantasy experience. Fantasy sports is an opportunity for new categories of business—casinos, stadiums, bars and TV providers—to capitalize on its popularity. Casinos stand to gain immensely by creating rooms and events centered around catering to fantasy sports fans. Stadiums, like the Levi’s Stadium Fantasy Sports Lounge, fosters a fantasy sports friendly environment with phones chargers and high speed Wi-Fi.
Other sports teams, like the Washington Capitals, are beginning to sponsor their own live contests for fans to enjoy. Live fantasy sports—contests that are based on live performances and where participants can alter their fantasy teams during the game—is a new type of fantasy contest that SportsTradex is developing.
TV providers stand to gain by making the sports-watching experience more interactive and immersive by providing fantasy contests through their programming. There is also an opportunity for sports bars to capitalize on the rise of fantasy sports by partnering with fantasy companies to host live fantasy events. SportsTradex frequently partners with popular sports bars, and will continue to sponsor innovative and unique live events.
Future fantasy fans will want, and come to expect, more diversity in DFS contests. Right now, the majority of DFS players use more than one website because they want a large array of options to choose from. SportsTradex is positioned with this future trend in mind as we are the leader in non-traditional contests and are continually innovating the types of contests we provide. SportsTradex is positioned to capitalize on all these trends, and we are excited for the opportunities and potentials for growth that these future trends present.