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  • mambaland

    https://www.legalsportsreport.com/16033/fanduel-financials-in-uk-report/

    Problems For FanDuel: Audit Questions Daily Fantasy Company’s Ability To Raise Money Amid Financial Struggles

  • Taterchipdip

    This part of the article was a little alarming.

    “ FanDuel laid off 60 employees in October last year.”

    No wonder they are raising the rake.

  • thegeneral391

    is it time to head for the hills?

  • Roma315

    • 703

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    • Ranked #86

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    Fan duel keeps topping up my account up $5 lol. Everyweek, emails. Top it up $500 and you will have my business again.

  • thegeneral391

    @Roma315 said...

    Fan duel keeps topping up my account up $5 lol. Everyweek, emails. Top it up $500 and you will have my business again.

    is that like reload bonus or just free moneys?

  • Roma315

    • 703

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    @thegeneral391 said...

    is that like reload bonus or just free moneys?

    Free money

  • tmspriggs

    Maybe let Texans play

  • wolfjb1

    Nice reporting. Barely mentioned the good news:

    Not all the metrics were bad for FanDuel. The number of paid active players soared to 2.2 million in the six months after June 2015, from 1.25 million in the previous 18-month period. Total fees gathered came in at $64.4 million for the six-month period to December 2015, compared with $87.7 million in the 18 months previously.
    This was a record revenue figure for any six-month period in the company’s history.

  • OsRitmos

    @wolfjb1 said...

    Nice reporting. Barely mentioned the good news:

    Not all the metrics were bad for FanDuel. The number of paid active players soared to 2.2 million in the six months after June 2015, from 1.25 million in the previous 18-month period. Total fees gathered came in at $64.4 million for the six-month period to December 2015, compared with $87.7 million in the 18 months previously.
    This was a record revenue figure for any six-month period in the company’s history.

    Yea, but what has happened since then in 2016/17? My guess is it has dropped dramatically. No one I know plays DFS anymore.

  • raiders7532

    The fish have died out or left the pond infested by the sharks who Fanduel and draftking cater too.

    Nobody posted this.
    “The future of daily fantasy sports site FanDuel has been cast into doubt after results posted with the UK’s Companies House showed the operator’s auditors have issued a ‘going concern’ warning. That comes after the company posted losses for the six months to December 2015 of $186 million and other information about the company’s status in 2016 and 2017.

    The “going concern” language is common in audits of companies where venture capital is involved and where unresolved debts exist. But the audit also concluded that FanDuel might have difficulty raising the money required for continuing in the long term.

    In the notes from auditors Deloitte the report states that the company had $19.5 million of cash on the balance sheet as of the end of August this year and that despite injection of $26.4 million in September, it would “not fully bridge the potential funding gap.”

  • raiders7532

    @OsRitmos said...

    Yea, but what has happened since then in 2016/17? My guess is it has dropped dramatically. No one I know plays DFS anymore.

    Agree,all my friends and people that i know left DFS like a year ago. They were pissed BECAUSE they were competing with people who had up to 500 lineups.About 75% took their money to offshore gambling sites the rest took their money to Indian casinos.

    I think DFS companies will be gone in a year or so.

    DFS was suppose to be fun and away to follow sports instead the losers who tried to make a living out of DFS killed the sport.

    GREED killed DFS.

  • bhdevault

    • Lead Moderator

    • Blogger of the Month

    @raiders7532 said...

    Agree,all my friends and people that i know left DFS like a year ago. They were pissed BECAUSE they were competing with people who had up to 500 lineups.About 75% took their money to offshore gambling sites the rest took their money to Indian casinos.

    I think DFS companies will be gone in a year or so.

    DFS was suppose to be fun and away to follow sports instead the losers who tried to make a living out of DFS killed the sport.

    GREED killed DFS.

    I suppose things are different for everyone. I play in a poker league of 28 guys, I only knew a few coming into the league. I would say at least 15 of them, if not more play DFS and it’s a huge topic of conversation every time we play. Every time I’m at a table with some of them, they just bombard me with questions. In fact, this past week when I mentioned people play 150 lineups a couple were amazed, they couldn’t believe it.

    Remember, there is a VERY large percentage of people who just play for fun and don’t browse forums.

  • zline34

    @bhdevault said...

    I suppose things are different for everyone. I play in a poker league of 28 guys, I only knew a few coming into the league. I would say at least 15 of them, if not more play DFS and it’s a huge topic of conversation every time we play. Every time I’m at a table with some of them, they just bombard me with questions. In fact, this past week when I mentioned people play 150 lineups a couple were amazed, they couldn’t believe it.

    Remember, there is a VERY large percentage of people who just play for fun and don’t browse forums.

    Well many people that play poker also play dfs. Most of my friends that played casually quit about a year ago as well. The casual players are the ones that keep it going not us.

  • mambaland

    i am not sure if i blame the dfs companies for being greedy or for the influx of people finding ways to “we shall say gain an edge” whether thru team work..computer programs etc. I do not think the companies anticipated that they would constantly be outsmarted or outdone and most who join have no idea the rake, taxes and sharks are all working against them and they soon leave and find other ways to play dfs. Like it or not the NFL is not doing well now i know a lot who quit over the issues that have arisen in the past year with anthem kneeling. I myself have cut my playing in half from about 2k a week to about $700 just because rake has made it more of a lottery event than an actual competition. Max entry guys fuel the revenue but they also destroy the new revenue. Soon they will all pretty much knock each other out or pool all their resources together I was in a 5 man winner take all and 3 of they guys all had the same logo and all but 1 =2 player had the same lineup. They did this all the way up and down the board.

  • Roma315

    • 703

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    • Ranked #86

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    I’ve helped a few friends get their footing in DFS. They were playing small ball and wanted some tips. My tips and suggestions helped them win a little. Once I stopped giving them advice they were losing again. Then they completely stopped. I don’t know any friends or associates who play DFS anymore.
    However they still play the season long fantasy sports against friends and co workers. As well as the survivor leagues.

  • yountingly

    • 347

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    • Ranked #32

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    @raiders7532 said...

    Agree,all my friends and people that i know left DFS like a year ago. They were pissed BECAUSE they were competing with people who had up to 500 lineups.About 75% took their money to offshore gambling sites the rest took their money to Indian casinos.

    I think DFS companies will be gone in a year or so.

    DFS was suppose to be fun and away to follow sports instead the losers who tried to make a living out of DFS killed the sport.

    GREED killed DFS.

    I just don’t get that mindset when there are plenty of single entry and 3 entry max gpps to choose from. You don’t have to enter large field gpps with your 1 lu against pros with many.

  • sochoice

    • 2017 DraftKings FBWC Finalist

    • 2017 FanDuel WFFC Champion

    I continue to be amazed by the number of DFS players who post on these forums and are clearly hoping for the industry to fail. Maybe if some of these bitter players spent more time on their research process and less time posting complaints on forums, results would be better. In any case, did any of you actually read the audit report? I am guessing not since the report is for the period ending December 31, 2015. Funny how the industry is holding up just fine since the going concern “warning” and is clearly on the upswing in 2017.

  • Messiah717

    @sochoice said...

    I continue to be amazed by the number of DFS players who post on these forums and are clearly hoping for the industry to fail. Maybe if some of these bitter players spent more time on their research process and less time posting complaints on forums, results would be better. In any case, did any of you actually read the audit report? I am guessing not since the report is for the period ending December 31, 2015. Funny how the industry is holding up just fine since the going concern “warning” and is clearly on the upswing in 2017.

    Perhaps people who understand business realize the numbers don’t add up. When I read the report on these figures it almost seems like a company being run like a Ponzi Scheme. Constantly needing to raise enormous funds from investors to stay afloat. Then you read something like this.

    Not all the metrics were bad for FanDuel. The number of paid active players soared to 2.2 million in the six months after June 2015, from 1.25 million in the previous 18-month period. Total fees gathered came in at $64.4 million for the six-month period to December 2015, compared with $87.7 million in the 18 months previously.
    This was a record revenue figure for any six-month period in the company’s history. Still administrative expenses rose significantly to $336 million for the six months.

    They took in a record $64.4 million in the six month period and then had $336 million in administrative expenses? This is now a business should be run?

  • mellofellowsu

    Seems like Fanduel’s problem is that they want to squeeze every nickel out of customers they have instead of sacrificing a little of their profit and growing their customer base. They don’t really make a good effort to get/cater to the casual customer IMO.

    I think the current group will end up selling to someone that knows what they’re doing.

  • sochoice

    • 2017 DraftKings FBWC Finalist

    • 2017 FanDuel WFFC Champion

    @Messiah717 said...

    Perhaps people who understand business realize the numbers don’t add up. When I read the report on these figures it almost seems like a company being run like a Ponzi Scheme. Constantly needing to raise enormous funds from investors to stay afloat. Then you read something like this.

    Not all the metrics were bad for FanDuel. The number of paid active players soared to 2.2 million in the six months after June 2015, from 1.25 million in the previous 18-month period. Total fees gathered came in at $64.4 million for the six-month period to December 2015, compared with $87.7 million in the 18 months previously.
    This was a record revenue figure for any six-month period in the company’s history. Still administrative expenses rose significantly to $336 million for the six months.

    They took in a record $64.4 million in the six month period and then had $336 million in administrative expenses? This is now a business should be run?

    People who understand business actually read source reports and look beneath the surface rather than just quoting articles. Certainly KKR does that and it is not only one of the best respected private equity firms in the world, but it is also an investor in FanDuel. And that $336mm in administrative costs the article references includes a massive rampup in marketing spend that has certainly been reduced significantly since then and also the legal/regulatory costs have changed as well. But you keep reading the thumbnail articles and base your opinion on that.

  • Messiah717

    @sochoice said...

    People who understand business actually read source reports and look beneath the surface rather than just quoting articles. Certainly KKR does that and it is not only one of the best respected private equity firms in the world, but it is also an investor in FanDuel. And that $336mm in administrative costs the article references includes a massive rampup in marketing spend that has certainly been reduced significantly since then and also the legal/regulatory costs have changed as well. But you keep reading the thumbnail articles and base your opinion on that.

    Quoting articles? These are actual numbers. It’s late 2017 and after a failed merger attempt it should tell you something that they’re still reliant on large amounts of funding to operate. I’ll stick to facts and numbers to form opinions and you can stick to your bro science and math.

  • celtics2448

    @sochoice said...

    People who understand business actually read source reports and look beneath the surface rather than just quoting articles. Certainly KKR does that and it is not only one of the best respected private equity firms in the world, but it is also an investor in FanDuel. And that $336mm in administrative costs the article references includes a massive rampup in marketing spend that has certainly been reduced significantly since then and also the legal/regulatory costs have changed as well. But you keep reading the thumbnail articles and base your opinion on that.

    Does this guy even think before he posts or does he just like criticizing people for the sake of criticizing and doesn’t care if he looks like a moron?

    Basic math dude. 87.7 million divided by 3 (6 month periods) = 29.3 million. They spent hundreds of millions on “admin” costs and marketing and it only net them an extra 35.1m profit for that sixth month period? That’s pretty terrible. But if they take your advice they should keep throwing their money at FanDuel so they can lose it at a rapid pace for them and never, ever get paid back? That’s highly respectable shit there.

  • sochoice

    • 2017 DraftKings FBWC Finalist

    • 2017 FanDuel WFFC Champion

    @celtics2448 said...

    Does this guy even think before he posts or does he just like criticizing people for the sake of criticizing and doesn’t care if he looks like a moron?

    Basic math dude. 87.7 million divided by 3 (6 month periods) = 29.3 million. They spent hundreds of millions on “admin” costs and marketing and it only net them an extra 35.1m profit for that sixth month period? That’s pretty terrible. But if they take your advice they should keep throwing their money at FanDuel so they can lose it at a rapid pace for them and never, ever get paid back? That’s highly respectable shit there.

    Oh wow, another one who doesn’t read or understand how a P&L works. I’ll let you continue to think that FD is in real trouble while they continue to post bigger tournaments (hello NBA), fill those tournaments, continue to grow rapidly (that’s why they need and are able to raise additional capital from real investors), increase rake (no fun, but supports the ecosystem that everyone here hates… or loves… can’t tell from these forums) and thrives as they come out the other side of the regulatory cloud they’ve been under.

    By the way, those $336mm of admin costs, you do realize there are hundreds of millions in unusual/one-time/flex costs in there? Do a little reading and you may find that KKR and every private equity firm that invests in FD are a lot smarter than you and me.

  • Messiah717

    @sochoice said...

    Oh wow, another one who doesn’t read or understand how a P&L works. I’ll let you continue to think that FD is in real trouble while they continue to post bigger tournaments (hello NBA), fill those tournaments, continue to grow rapidly (that’s why they need and are able to raise additional capital from real investors), increase rake (no fun, but supports the ecosystem that everyone here hates… or loves… can’t tell from these forums) and thrives as they come out the other side of the regulatory cloud they’ve been under.

    By the way, those $336mm of admin costs, you do realize there are hundreds of millions in unusual/one-time/flex costs in there? Do a little reading and you may find that KKR and every private equity firm that invests in FD are a lot smarter than you and me.

    KKR also was one of the firms that purchased Toys R US back in 2005. How did that investment work out?

  • celtics2448

    @sochoice said...

    Oh wow, another one who doesn’t read or understand how a P&L works. I’ll let you continue to think that FD is in real trouble while they continue to post bigger tournaments (hello NBA), fill those tournaments, continue to grow rapidly (that’s why they need and are able to raise additional capital from real investors), increase rake (no fun, but supports the ecosystem that everyone here hates… or loves… can’t tell from these forums) and thrives as they come out the other side of the regulatory cloud they’ve been under.

    By the way, those $336mm of admin costs, you do realize there are hundreds of millions in unusual/one-time/flex costs in there? Do a little reading and you may find that KKR and every private equity firm that invests in FD are a lot smarter than you and me.

    I think you need to take a refresher course on basic vocabulary. This week’s words are “thrive” and “growth”. Also please direct me to where they “continue to post bigger tournaments” and ““that’s why they need and ARE ABLE to raise additional capital from real investors” They aren’t doing either, which is the whole point of this thread. You’re fake news.

  • thedude404

    • 2015 FanDuel NBA Playboy Mansion Finalist

    @sochoice said...

    I continue to be amazed by the number of DFS players who post on these forums and are clearly hoping for the industry to fail. Maybe if some of these bitter players spent more time on their research process and less time posting complaints on forums, results would be better. In any case, did any of you actually read the audit report? I am guessing not since the report is for the period ending December 31, 2015. Funny how the industry is holding up just fine since the going concern “warning” and is clearly on the upswing in 2017.

    “clearly on the upswing”

    Based on what? They are burning through cash, the cost of acquiring players is increasing, they cant keep players, they haven’t reported stats since 2015. what in any of that tells you things are “on the upswing”. LOL. If by things are holding up you mean you can log on today and play, then yeah, I guess you’re right. You’re telling me some investment company is going to come in and dump $100 million + into fanduel based on that info? LOL!

    Maybe some of us realize with failure will come a rebirth……with someone that knows what they are doing.

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