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  • walkoff9

    http://espn.com/chalk/story/_/id/17913851/draftkings-fanduel-finalizing-terms-imminent-merger

  • rainbowtroutman

    @Linsanity88 said...

    States can’t legalize sports betting. Federal law only allows for sports betting in Nevada, Delaware, Oregon and Montana. NJ tried to fight the federal ban recently and got shot down in court. Now, Congress could change the law, but that’d be an uphill battle requiring a ton of time and money. IMO, you won’t see legalized sports betting in other states in the next decade as the sports leagues are against it, and they have plenty of money as well as clout in Washington. Online poker has been trying to get legalized for a decade and it hasn’t made any progress federally and minimal progress at the state level.

    Legalized sports betting will be happening within 2 years. Big money maker weather on the States side or Federally. To much cash to pass up for our greedy government.

  • 7thdaymoneytime

    @Linsanity88 said...

    States can’t legalize sports betting. Federal law only allows for sports betting in Nevada, Delaware, Oregon and Montana. NJ tried to fight the federal ban recently and got shot down in court. Now, Congress could change the law, but that’d be an uphill battle requiring a ton of time and money. IMO, you won’t see legalized sports betting in other states in the next decade as the sports leagues are against it, and they have plenty of money as well as clout in Washington. Online poker has been trying to get legalized for a decade and it hasn’t made any progress federally and minimal progress at the state level.

    States are hard up for money these days. They will gladly take any kind of tax revenue they can get their hands on. Look at marijuana. One by one, states are going not just medical, but fully legal. Why? Lots of tax money to be made. Also, let’s not forget they were also making some money when it was illegal too, arrests, court fees and fines, payroll taxes taken from law enforcement, etc. And in many states they’ve had to create new regulatory committees, and in some cases even new infrastructure. Now compare that to gambling.

    It’s estimated that Americas alone spend nearly $400 BILLION a year on gambling with only 5% of it actually being legal wagers (and taxed). Most states already have casinos in some form now, so there is relatively little implementation cost. Where there aren’t casinos already, online books will fill the void quickly. Trust me, many states are eyeing ways to get a piece of that pie, sports betting will be legal across the US in short order.

  • dogga55

    As to the rake, I don’t see why there couldn’t be a reduction. In sports betting, the rake is essentially only 5% (10% of the losing bets). I don’t see why DFS can’t be profitable with something less than the 10%-15% they are taking now.

  • rainbowtroutman

    @dogga55 said...

    As to the rake, I don’t see why there couldn’t be a reduction. In sports betting, the rake is essentially only 5% (10% of the losing bets). I don’t see why DFS can’t be profitable with something less than the 10%-15% they are taking now.

    exactly,which is why if sports betting is made legal DFS is in trouble. The sites would be forced to change.

  • AWoo

    @dogga55 said...

    As to the rake, I don’t see why there couldn’t be a reduction. In sports betting, the rake is essentially only 5% (10% of the losing bets). I don’t see why DFS can’t be profitable with something less than the 10%-15% they are taking now.

    Like I referenced in another page on this thread already, what big 2 corporations have reduced their price/rake onto its customer base? SiriusXM merger and prices overall for their subscription went up 3x in about 8-9 years.

    Also, they DK and FD have raised X amount of money at X valuation, therefore they have to please their investors that have invested into their company. They want their investment back + profit of course, so the chances of them becoming profitable even with a merger is already low. They currently aren’t even profitable businesses.

  • thedude404

    • 2015 FanDuel NBA Playboy Mansion Finalist

    @dogga55 said...

    As to the rake, I don’t see why there couldn’t be a reduction. In sports betting, the rake is essentially only 5% (10% of the losing bets). I don’t see why DFS can’t be profitable with something less than the 10%-15% they are taking now.

    The amount of sports bettors is vastly larger than that of DFS players. Look at how many sports books are out there that have existed for quite a while, and I’m assuming, profitable. There is no DFS site that is profitable. The reason why DFS cant be profitable is more people are quitting than joining, which is because of the sites failed business plans.

    Hopefully the combination of FD and DK will cut down on operational costs enough where rake can be lowered. Personally, I think that would be a great way to attract new customers. Make them aware of the rake, and how they are now lowering it. Making it more advantageous for the player rather than the “house”.

  • thedude404

    • 2015 FanDuel NBA Playboy Mansion Finalist

    @rainbowtroutman said...

    exactly,which is why if sports betting is made legal DFS is in trouble. The sites would be forced to change.

    Actually, I believe just the opposite to be true. If you see sports betting go legal, people will not question whether DFS is legal, resulting in more DFS players. Believe it or not, people still question that.

    Anyone that wants to sports bet now already is. Making sports betting legal wont cut into DFS. Its like saying if you make all drugs legal, then we’re going to have a bunch more addicts walking around and that will cut into pharma profits. Thats the easy, lazy way (not saying you are lazy!) out. It’s much easier (and in many cases advantageous to ones own cause) to believe a false narrative instead of actually digging into factual information, doing the work, and coming to the correct conclusion.

    In fact, just the opposite would be true. We’d have far less addicts walking around if all drugs were legal. It’s already been proven. But I digress.

  • deejones49

    @thedude404 said...

    The amount of sports bettors is vastly larger than that of DFS players. Look at how many sports books are out there that have existed for quite a while, and I’m assuming, profitable. There is no DFS site that is profitable. The reason why DFS cant be profitable is more people are quitting than joining, which is because of the sites failed business plans.

    Hopefully the combination of FD and DK will cut down on operational costs enough where rake can be lowered. Personally, I think that would be a great way to attract new customers. Make them aware of the rake, and how they are now lowering it. Making it more advantageous for the player rather than the “house”.

    +1

  • Jcb890

    @thedude404 said...

    Personally, I think that would be a great way to attract new customers. Make them aware of the rake, and how they are now lowering it. Making it more advantageous for the player rather than the “house”.

    I highly doubt rake is the #1 or #2 reason attracting new customers or keeping new customers is tough. It might not even be in the top 5 issues to be honest.

  • geardaddy

    Has anyone from Texas contacted DraftKings and Fanduel about the future for us? Seems like all the Texas residents ITT: are not optimistic.

  • thedude404

    • 2015 FanDuel NBA Playboy Mansion Finalist

    @Jcb890 said...

    I highly doubt rake is the #1 or #2 reason attracting new customers or keeping new customers is tough. It might not even be in the top 5 issues to be honest.

    so what are your top 5 issues out of curiousity? I never said rake was a top issue by the way. I simply stated that it would be a great way to make people aware of rake, and that they were lowering it to benefit the customer. It would be a marketing ploy the sites could use if they chose to lower rake to attract new customers, which they desperately need to do.

  • Jcb890

    @thedude404 said...

    so what are your top 5 issues out of curiousity? I never said rake was a top issue by the way. I simply stated that it would be a great way to make people aware of rake, and that they were lowering it to benefit the customer. It would be a marketing ploy the sites could use if they chose to lower rake to attract new customers, which they desperately need to do.

    You can make people aware of it, sure. However, the problems with DFS are beyond the rake being too high. If it were truly a level playing field for all and skill levels were matched, then I agree, rake would be a huge issue. As it stands now, there are much more important things to fix when looking through a new customer’s eyes.

    If I had to wager a guess, I would think these are the top overall reasons they are having a tough time attracting and keeping new customers:

    1 – Bum Hunting: The sites want people to think they have solved this problem. They obviously have not. They have only supposedly done away with the scripting aspect, but nothing sends away new players quicker than getting paired up against a top DFS player (aka “Pro”) in a $1 Head-to-Head. I would guess that these new users are also noticing that all of these “Pros” have shitloads of entries into all of the GPPs, even down to the $0.25. While they may not realize they are “Max entering”, it is pretty obvious these guys are putting in many entries each time.

    2 – Fair Play: Users seem to be realizing that these “Community Guidelines” and “Fair Play Rules” are basically bullshit and mean nothing. Feedback and opinions to the sites result in nothing other than a “Thank you for contacting us, too bad, so sad.”

    3 – Trust in the Company: Trust in the large companies has been very low lately. People don’t like giving money to people or companies they do not trust. Anyone looking from the outside must believe these companies are run very poorly, especially when it comes to public relations.

    4 – Legal Issues: This one lumps a lot together. Mostly what I think people are afraid of is a “Black Friday” type of situation like poker saw. Now, that is probably an unrealistic fear, but I bet it is not very uncommon. Also part of this is state-by-state regulations, etc.

    5 – Controversy: It seems every week there is a new reason for controversy or doom-and-gloom. Most of these are pretty reasonable also, not just crazy ideas.

    Like I said, if all of the other (major) issues were fixed, rake would be a huge issue for all/most. Right now though, there are far more important and bigger issues than rake when it comes to attracting new customers and retaining new customers.

  • rebkell

    @Jcb890 said...

    3 – Trust in the Company: Trust in the large companies has been very low lately. People don’t like giving money to people or companies they do not trust. Anyone looking from the outside must believe these companies are run very poorly, especially when it comes to public relations.

    4 – Legal Issues: This one lumps a lot together. Mostly what I think people are afraid of is a “Black Friday” type of situation like poker saw. Now, that is probably an unrealistic fear, but I bet it is not very uncommon. Also part of this is state-by-state regulations, etc.

    I think 3 and 4 are the real killers, it has a stigma attached to it and that probably has killed off a ton of new users. It made enough noise in the news and I suspect a lot of people have read about all the crap spewed by the media.

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