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  • catfish_tx

    Heard this interview live this morning and now it’s available for anyone to listen: http://www.wbap.com/podcasts/ Interview is 10 minutes long, and the part I reference begins at roughly the 4:20 mark.

    Randy Mastro, who DK hired to fight the New York AG, was on a Dallas radio station this morning to discuss the Texas AG’s recent opinion on DFS in Texas. For the most part, I didn’t think he did too bad. Certainly room for improvement with explaining certain things to uninformed parties or using better analogies. But this part really threw me for a loop:

    Radio Host: “What about the fact that DraftKings and other fantasy leagues take a rake? They take a little cut of it. Does that change it?”

    Mastro: “They don’t. Here you go guys, that’s a fundamental misunderstanding.”

    I could read between the lines (later through his answer) and know that he was referencing GPP’s that payout regardless of whether or not the sites have enough entries to cover the prize money, but we all know that nearly every single other contest from 50/50’s to 250-man leagues aren’t guaranteed unless they fill, and the entire pot of entries isn’t 100% paid out to the players. That’s rake.

    Since that’s a big key in the current wording of Texas law, I’m very concerned about Mastro’s approach to that question in particular, and worry about his overall knowledge of what he’s trying to defend.

  • SouthernShield

    @catfish_tx said...

    Heard this interview live this morning and now it’s available for anyone to listen: http://www.wbap.com/podcasts/ Interview is 10 minutes long, and the part I reference begins at roughly the 4:20 mark.

    Randy Mastro, who DK hired to fight the New York AG, was on a Dallas radio station this morning to discuss the Texas AG’s recent opinion on DFS in Texas. For the most part, I didn’t think he did too bad. Certainly room for improvement with explaining certain things to uninformed parties or using better analogies. But this part really threw me for a loop:

    Radio Host: “What about the fact that DraftKings and other fantasy leagues take a rake? They take a little cut of it. Does that change it?”

    Mastro: “They don’t. Here you go guys, that’s a fundamental understanding.”

    I could read between the lines (later through his answer) and know that he was referencing GPP’s that payout regardless of whether or not the sites have enough entries to cover the prize money, but we all know that nearly every single other contest from 50/50’s to 250-man leagues aren’t guaranteed unless they fill, and the entire pot of entries isn’t 100% paid out to the players. That’s rake.

    Since that’s a big key in the current wording of Texas law, I’m very concerned about Mastro’s approach to that question in particular, and worry about his overall knowledge of what he’s trying to defend.

    Semantics. Rake/Contest Fees.

    I truly believe we will start seeing a more clear cut Contest Fee coming see. $1 entry will be $1.14 $5 entry will be $5.70 and so on.

    This will give players an easy to see “cost” of playing. It will also have the added bonus of larger prize pools while paying out the same %

  • slcseas

    Imagine how much money that clown is getting paid to argue semantics you couldn’t get past a 10 year old. This guy is prime candidate to hold public office at some point in the near future. Our legal system demands this kind of stupid skullduggery so I can’t blame him totally, but this whole thing makes me want to claw my own eyeballs out. Ugh.

  • TheRyanFlaherty

    While I’m not sure this was his intent…It does make sense to refer to it, and frame it as a “Service Fee”.
    It’s not different than other internet services that allow you a platform to partake in things with a huge user pool that spans the country.

    When you say ‘Rake” those that know the word beyond a lawn tool are going to think of Poker, but unlike Poker the “rake” is fixed, so really it is like a fee. A 100 person 50/50 is always the same. The GPP’s are guaranteed. They just put u pa contest and it has to fill. I think that was a major reason why people never fully trusted online poker – The rake grew based on the pot size and the pot size grew based on the hands in play. More playable hands means more rake and more profit…and it made people question the legitimacy. Where as nothing that happens tonight in the NBA games changes the % of money FanDuel is going to take from my Entry Fees.

    It could be that guy really just has no clue….and that is scary….but I do agree with the sentiment.

  • walkoff9

    • 594

      RG Overall Ranking

    When the NY stuff first came out and we saw everything the AG said, i thought we had nothing to worry about and win ultimately win because the guy was clueless. Saying things like it’s not skill and then the next sentence is the same people always win.

    But if the defense is trying to argue there is no rake…..dfs is screwed.

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