Tag: DraftKings

DFS legal news /

Texas Attorney General becomes the latest to find daily fantasy to be illegal gambling

Another state Attorney General has ruled that daily fantasy sports is illegal gambling, dealing the latest in a series of unfortunate headlines for the once ascendant industry.

The bearer of Tuesday’s bad news was Ken Paxton of Texas, who issued an opinion stating:

Under section 47.02 of the Penal Code, a person commits an offense if he or she makes a bet on the partial or final result of a game or contest or on the performance of a participant in a game or contest. Because the outcome of games in daily fantasy sports leagues depends partially on chance, an individual’s payment of a fee to participate in such activities is a bet. Accordingly, a court would likely determine that participation in daily fantasy sports leagues is illegal gambling ‘under section 47.02 of the Penal Code.

“Simply put, it is prohibited gambling in Texas if you bet on the performance of a participant in a sporting event and the house takes a cut,” Paxton said via press release. “These sites are also wrong in claiming an actual-contestant exception, which applies only to contestants in an actual skill or sporting event.  And unlike some other states, Texas law only requires ‘partial chance’ for something to be gambling; it does not require that chance predominate.”

In Texas, the courts have the responsibility of determining what is legal, and the opinion of the Attorney General is nonbinding. However, it may carry weight in legal challenges, the Austin American Statesman reports.

Paxton also found season-long leagues to fall under the definition of illegal gambling of section 47.02 of Texas code, but said that private leagues in which no rake is taken may be protected from prosecution.

DraftKings responded with a statement attributed to counsel Randy Mastro, stating it intends to continue operations in Texas.

“We strongly disagree with the Attorney General’s prediction about what the courts may or may not do if ever presented with the issue of whether daily fantasy sports are legal under Texas law. The Texas Legislature has expressly authorized games of skill, and daily fantasy sports are a game of skill. The Attorney General’s prediction is predicated on a fundamental misunderstanding of DFS. We intend to continue to operate openly and transparently in Texas, so that the millions of Texans who are fantasy sports fans can continue to enjoy the contests they love.”

Paxton joins an expanding list of attorneys general who have weighed in on daily fantasy sports in recent months.

  • Based on an opinion from its Attorney General, Nevada ruled in October that daily fantasy companies were gambling operations and needed a gaming license to do business in the state.
  •  New York’s Eric Schneiderman issued industry leaders FanDuel and DraftKings cease-and-desist letters brimming with threats and incendiary rhetoric. The companies have been allowed by courts there to continue operating in the state pending a trial expected to take place in the coming months.
  • On Dec. 23, Illinois’ Lisa Madigan said that daily fantasy contests amount to illegal gambling and asked FanDuel and DraftKings to amend their terms of services and cease accepting players from the state. Both companies have reached agreements with the Attorney General’s office that will allow them to continue operations through a trial scheduled for June.
  • Last week, Maryland’s Brian Frosh asked the state’s legislature to further clarify state law relating to daily fantasy sports.
  • A representative of Vermont’s Attorney General’s office said in a legislative committee hearing on Friday that daily fantasy sports contests violate the state’s gambling laws and that it does not support pending legislation that would exempt DFS.

Paxton’s opinion was announced on the same day that the Fantasy Sports Trade Association Winter Conference is set to begin in Dallas. The conference was moved from its previously scheduled location in Las Vegas after the Nevada Gaming Commission’s unfavorable ruling.

And though Paxton’s opinion is not what the fantasy industry would like to hear, attorney Daniel Wallach pointed out that the language is far less aggressive than what’s been seen elsewhere.

Citing research from Eilers & Krejcik Gaming, LegalSportsReport.com reported that Texas accounts for about 8 percent of the total DFS market, making it one of the top five states in terms of active players.

Live finals /

Aejones overcomes 30-point deficit, takes home $5 million in largest DFS contest to date

Aaron Jones, also known by his DraftKings moniker “aejones,” became the biggest single-tournament winner in the history of daily fantasy sports on Sunday, going home with $5 million in the DK Fantasy Football World Championship.

The tournament began last month in San Diego, with 200 qualifiers competing to earn a spot in the top 10 and advance to the championship round. Scores were carried over from San Diego, and renowned DFS pro Charles Chon (Condia) entered the weekend with a substantial lead. His 219.2 points in Round 1 gave him a 26-point advantage over the nearest competitor and a nearly 30-point advantage over Jones.

But Condia’s fortunes turned early in the championship round when Packers wide receiver Randall Cobb was injured in the first half against Arizona and removed from the game before scoring a point. Add in Heath Miller’s subpar performance (one catch, 5 yards) and Condia was at a significant disadvantage.

Meanwhile, Jones got serviceable totals across his roster and cashed in with 30-plus point totals from both Larry Fitzgerald and Martavis Bryant. Here’s the full lineup:

5millLU

Compared to Round 1, scores were down considerably; Jones’ 162 in the championship round was 11 points better than Danny Moreno (Danny1234), who finished second on the day and overall, taking home a $2 million prize.

Condia finished third with a $1 million payout.

DFS NFL /

Grading the picks: Wild Card results and cumulative totals

Since Week 4 of the NFL season we’ve gathered the recommended fantasy plays from various analysts across the industry. Below we present the results for each fantasy tout for both the Wild Card round of the playoffs and the cumulative totals.

Disclaimer: These results are not scientific, and are not intended to be taken as such. Our motive is to bring some small measure of accountability and record-keeping to a subsector of the daily fantasy industry that has boomed in the last two years.

A note on our methodology: Player prices are divided by 1,000 and then compared against the points earned. For example, a player with a salary of $5,000 would be converted to 5. If that player scored 10 points, his fantasy-points-per-dollar rating would be 2.0; if he scored 15 points, his rating would be 3.0, etc.

Each analyst’s picks from last week can be viewed here. For the purpose of our calculations, players who were inactive were removed.

If there’s another analyst or optimizer you’d like to see tracked, let us know on the forum.

Wild Card results

FANDUEL   
AnalystOutletNumber of picksFantasy points per dollar
Thomas EmerickSporting News82.72
Brad PinkertonSporting News42.66n
Jeff MansFantasy Alarm202.04
DailyFantasyNerd optimizer81.98
Justin BaileyRotoWorld81.94
Renee MillerRotoWorld101.73
RotoWire optimizer81.73
RotoGrinders optimizer81.69
DRAFTKINGS   
AnalystOutletNumber of picksFantasy points per dollar
Brad PinkertonSporting News44.49
Jerry DonabedianRotoWire94.04
Jonathan BalesDraftKings Playbook83.91
RotoWire optimizer93.89
Ryan NoonanDraftKings Playbook53.51
DailyFantasyNerd optimizer93.46
Jeff MansFantasy Alarm183.11
Matthew BerryESPN243.03
KC JoynerESPN92.84
Benny RicciardiDraftKings Playbook72.3n

Cumulative results (Weeks 4-Wild Card round)

FreerollTop Prize
None currently listed
FreerollTop Prize
MLB Regular Salary Cap, Pro Pick'em & Live Snake Draft200 FFP (Fantasy Feud Reward Points)
DFS NBA /

DraftKings announces a live final for basketball with $1 million top prize

DraftKings announced Monday that it will hold an NBA live final in March with a $4 million prize pool and a $1 million top prize, making it the largest contest of its kind on the 2016 docket.

FanDuel’s live final, held at the Playboy Mansion on Feb. 27, boasts a $600,000 pool with $100,000 going to the winner. The disparity between daily fantasy’s leading operators is a continuance of recent strategy, with FanDuel offering more conservative overall pools and flatter payout structures, while DraftKings favors the larger pools with top-heavy prizes.

Qualifiers for the DraftKings final, dubbed the Fantasy Basketball World Championship, are ongoing after tipping off Monday night. Well-known pro Assani Fisher has already locked up a pair of spots in the 100-entry field, and top-ranked Saahil Sud, better known as “maxdalury,” also clinched a spot on the opening night of qualifiers.

Qualifying tournaments are being held at the $3, $300 and $1,000 levels, with satellites at $5, $27, $65 and $100.

The final will be held March 18 at the Hard Rock Hotel in San Diego, and the prize package for qualifying players includes a five-night stay with $1,000 for airfare.

DFS legal news /

FanDuel, DraftKings granted stay, can continue operating in NY through appeal

As first reported by ESPN and confirmed by multiple outlets, FanDuel and DraftKings have been granted a permanent stay by an appellate panel in New York, leaving the companies free to continue accepting players in the state as they fight Attorney General Eric Schneiderman in court.

According to the Sports Business Journal, the stay does not reflect on the merits of the larger case; the decision was instead reached out of acknowledgement that irreparable harm would have resulted from a shutdown in New York, one of the most critical daily fantasy markets.

The order itself makes no mention of the panel’s rationale.

The emergency stay was originally granted to the companies on the same day that judge Manuel Mendez ruled in favor of Schneiderman’s request for a preliminary injunction that would’ve shut the companies down in the state pending a trial. Monday’s decision upholds that stay.

A trial in the case is expected to commence in 2016, and there’s at least a possibility that the state legislature will make daily fantasy sports contests legal in the state prior to the case’s ultimate conclusion.

Full statement from DraftKings:

“We are pleased with the Court’s ruling today. Daily Fantasy Sports contests are as legal now as they have been for the past seven years that New Yorkers have been playing them.  As our litigation continues, we expect an appellate court to see what we have known since the outset: DFS is a game of knowledge and skill, one that builds community and whose competitive spirit has become important to the lives of millions of people. Our ongoing appeal will make clear that daily fantasy contests require just as much skill as season-long contests, which the Attorney General recognizes as perfectly legal under state law.

“We are engaged with legislatures and Attorneys General across the country, including in New York, to ensure that our fans are able to experience our contests in a fun and fair way with appropriate and thoughtful consumer protections in place.  This includes active collaboration with the Attorney General in Massachusetts, where we are working to become the industry leader in transparency and consumer protection. We will continue in these efforts so that fans can keep enjoying Daily Fantasy Sports for years to come.”

 

DFS industry /

Undisputed champ? Latest data shows DraftKings building firm lead over FanDuel

At the end of the NFL regular season, it appears DraftKings has overtaken FanDuel as the top operator in daily fantasy sports.

Since launching in 2012, DraftKings’ ascent has been swift, but 2015 represented new levels of acceleration—and turbulence. FanDuel ended 2014 as the unquestioned leader in DFS, but signs of an eroding leadership position surfaced in the summer, when DraftKings’ partnership with Major League Baseball and the surging popularity of its golf contests gave the site considerable momentum.

Comprehensive numbers are unavailable, making definitive conclusions difficult, if not impossible, to reach. Nonetheless, the most recent data from SuperLobby.com paint a pretty clear picture.

Last weekend, the final Sunday of the NFL regular season, DraftKings brought in more entry fees from its guaranteed contests alone than FanDuel did from GPPs and cash games combined. It was the second consecutive week of similar results and despite its incompleteness, it’s perhaps the most definite proof to this point that DraftKings is the affirmed industry leader.

SuperLobby_Week17NFL

Daily NFL contests will continue into the playoffs on both sites in a somewhat stripped-down fashion. Prize pools have declined at most sites throughout the season as the industry became engulfed in turmoil and turned its attention (and expenses) away from marketing and toward legal defenses on numerous fronts across the country.

DraftKings’ Millionaire Maker, which began the season with a $10 million pot and $3 million total going to the top two placers, will run this weekend with a $3.5 million pool and a $1 million jackpot.

FanDuel has opted for smaller pools with a more progressive payout structure. Its largest NFL contest includes a $1.25 million pool with less than 10 percent ($120,000) going to first place.

Beyond the NFL, both sites are performing well in NBA contests. In the most recent figures from SuperLobby, FanDuel brought in $20.35 million in NBA entry fees (GPPs and cash games) between Dec. 16-22, while DraftKings grossed $13.64 million from GPPs. FanDuel had a net revenue of a little more than $2 million, while DraftKings’ was slightly less than $1.5 million.

SuperLobby_NBADec16

Golf is also returning with its first tournament of 2016 this weekend. As of one hour before lineup lock, DraftKings appeared well on its way to filling or avoiding overlay in its guaranteed contests, providing a not-insignificant edge over FanDuel in immediate revenue.

FanDuel has shied away from DFS golf, citing legal concerns. As recently as September, company founder and CEO Nigel Eccel said he might reconsider, but given scrutiny now applied to the industry’s leading sites, that seems doubtful.

Year in Review /

DailyFantasyTalk’s top stories of 2015

Here’s our look back at some of our most-clicked stories of 2015, a year of tremendous growth and equal turmoil for the daily fantasy sports industry.

Tout site offers $100K to NYC public schools if AG can beat a daily fantasy professional

After New York Attorney General Eric Schneiderman dropped a legal hammer on daily fantasy sports in the form of a cease-and-desist letter bursting with rhetorical bombast, a pair of DFS touts challenged the AG to put his money where is mouth is.

Not surprisingly, they never heard back from the esteemed Mr. Schneiderman.

An op-ed from the DFS player whose post kickstarted a controversy

The story of the year in daily fantasy sports might never have unfolded if not for an astute player who noticed a blog with sensitive ownership data posted on DraftKings Playbook prior all lineups being locked.

That slip-up sounded alarm bells for Colin Drew, and his post on RotoGrinders’ forum morphed rapidly into a scandal/non-scandal that will likely be judged as one of the most pivotal moments in DFS history.

In an op-ed for DFT, Drew talked about why it was important to hold sites accountable and his thoughts as the DraftKings data leak became a national news story.

The math and myths behind GPPs

Ed Miller, the author of numerous poker strategy books and one of the most compelling thinkers in DFS, breaks down massive multi-entry tournaments in a 3,000-word post that reads like a breeze.

Regardless of your level of engagement, if you play DFS, this one is highly recommended.

Fantasy first-timer wins $1 million on FanDuel

Back in Week 2 of the NFL season, a 41-year-old truck driver won $1 million on the first DFS lineup he ever created.

We caught up with Jeremiah Bushnell on Monday when he was still in second place and 5.5 points behind the leader. That night he got 14 points from the Jets defense and cruised to the $1 million payday.

DFS pros aim to push high-volume players out of low-stakes games

In the aftermath of the DraftKings data leak controversy, many DFS players started speaking out with grievances about the way the industry’s leading operators were conducting their business. Perhaps none had a greater reach than Cory Albertson and Ray Coburn, who play under the handle “rayofhope.”

Albertson penned an op-ed for the Wall Street Journal outlining some of the issues, and the pair followed up by scooping up the action of high-volume players who flooded low-stakes games.

The dilemma of skill & what it means for the future of DFS

Back before most of us had ever heard the name Ethan Haskell and Nevada was the only state where legal trouble seemed imminent, the question of skill vs. chance was being discussed in different context.

And though the circumstances are different now, the central question here remains relevant: Is there actually too much skill involved for DFS to remain a viable business model long term?

What effect will the proliferation of computer scripts have on DFS industry?

Though it seems almost quaint by today’s troubles, there was no controversy bigger for DFS this summer than the question of what to do about scripting.

DFS legal news /

DraftKings reaches deal with Illinois Attorney General on expedited court schedule

DraftKings has reached a deal with the Illinois Attorney General’s office on an expedited court schedule to resolve the question of the company’s legal standing in the state.

According to ESPN’s David Purdum, terms of the deal include a deadline of Jan. 22 for both parties to respond to the complaints by Jan. 22 with a trial set for late June, if necessary. Both parties also agreed to forego any other legal action against one another related to the legality of daily fantasy sports.

From Randy Mastro, attorney for DraftKings:

“We are pleased that we have reached agreement with the Illinois Attorney General’s Office today on an expedited court schedule ‎for determining the legality of the daily fantasy sports contests that DraftKings is offering in Illinois. We remain committed to providing DFS to the hundreds of thousands of loyal Illinois fans who love the game, and we look forward to our day in court, where we are confident we will prevail.”

FanDuel is reportedly pursuing a similar deal with the Attorney General’s office.

Illinios AG Lisa Madigan ruled on Dec. 23 that daily fantasy sports constituted illegal gambling according to state law and asked companies to add Illinois to their list of prohibited states. Both FanDuel and DraftKings quickly filed suit against the AG and have continued to operate as usual. Tuesday’s deal ensure a continuance of the status quo through trial.

DFS proponents are hopeful it won’t come to that. Illinios State Representative Michael Zalewski has introduced a bill championed by the industry as an example of friendly legislation. It would legalize DFS contests and install regulations without onerous fees and taxes.

Zalewski told ESPN that he hopes to push the bill through quickly.

“It’s certainly my hope that we can get it passed [by end of the session],” Zalewski told ESPN.com on Tuesday. “If I can convince enough of my colleagues that this is a good consumer protection bill on a new form of technology, I think we can.”

Illinois represents just one front in the ongoing legal struggles of DFS companies. Their standing in New York is especially tenuous. A panel of judges will decide next week whether they may continue operating in New York as they await a trial presumably later in 2016.

 

DFS recap /

Face of FanDuel ads wins more than $1 million with top 2 spots in DraftKings tourney

Erik Hafner, a top-ranked daily fantasy pro, just padded his bankroll substantially.

Known as “ehafner” on DFS sites and on FanDuel ads, Hafner won first and second places in the DraftKings NFL $4 Million Main Event this weekend, grossing $1.35 million. Including other contests, Hafner reportedly won more than $1.6 million during Week 16 on DraftKings alone.

Hafner had 20 lineups in the 2,960-team Main Event field, which carried a $1,500 entry fee. The top two scored 233.32 and 229.52, and shared five players in common.

ehafner first place

ehafner second place

Though DeAngelo Williams’ 36.3 points made him the highest-scoring player in both lineups, Brandon Marshall and Javorius Allen were arguably the most valuable players included on both rosters; Marshall put up 34.5 points with a 4.3 percent ownership rate, while Allen had 22.4 points and was just 2.2 percent owned.

The following players formed the core of the winning lineups:

  • Blake Bortles, 34.22 points, 25.6%
  • DeAngelo Williams, 36.3 points, 20.7%
  • Javorius Allen, 22.4 points, 2.2%
  • Brandon Marshall, 34.5 points, 4.3%
  • Travis Kelce, 16.3 points, 3.6%
DFS NFL /

Revenues down across the DFS industry, but profits remain for leading operators

Daily fantasy entry fees received were down again in Week 14’s NFL contests, but the industry’s major operators continue to turn reliable profits.

Every DFS site monitored by data analytics provider SuperLobby was down in terms of gross revenue on Sunday. FanDuel was down 11.7 percent from Week 13, Yahoo was down 10 percent, and DraftKings dropped 7.5 percent.

The declines are even starker when compared to midseason peaks; DraftKings is down 32 percent from Week 5’s all-time high, FanDuel has seen a 53 percent drop since Week 6, and Yahoo is down about 40 percent since its best Sunday in Week 5.

SuperLobby reports that FanDuel has enjoyed positive net revenue during each week of the NFL season and is only operator to do so.

DraftKings Millionaire Maker back to a $20 entry

Some of the dip can be explained by the sites’ decisions to scale back larger tournaments and reduce the advertising presence over the course of the season. Smaller tournaments have helped operators remain in the black, but may be attracting fewer casual fans.

DraftKings is reversing the trend of shrinking guaranteed prize pools for Week 15. After reducing its marquee contest to a $2.5 million pool in Week 13, this week’s “Millionaire Maker” will run with $5 million in guaranteed payouts. Entry fee for the tournament is also back to $20 after a one-off as a $3 entry in Week 13.

FanDuel’s Sunday Million tournament is holding at $1.75 million for the second consecutive week.

New York factor

It’s difficult, if not impossible, to quantify the effect of the ongoing legal turmoil on the industry.

Until a state appellate court granted a reprieve on Friday, FanDuel had been operating without the New York market, one of its largest player bases, since mid-November. Interestingly, other sites that have remained open to New York players saw little or no increase in tournament play in FanDuel’s absence.

Now expected to be available in the state through the NFL regular season, it will be worth watching to see if FanDuel’s numbers tick back up in Week 15.

NFL GPP entry fees in vs. prizes out for Dec. 13, 2015

DRAFTKINGS   
AnalystOutletNumber of picksFantasy points per dollar
Ryan NoonanDraftKings Playbook63.63
Benny RicciardiDraftKings Playbook93.39
Jerry DonabedianRotoWire92.99
Brad PinkertonSporting News42.97
Matthew BerryESPN282.86
KC JoynerESPN102.78
Jeff MansFantasy Alarm212.72
RotoWire optimizer92.54
Jonathan BalesDraftKings Playbook82.3

All data courtesy of SuperLobby.com