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  • 19massey89

    Draftkings makes 130k in rake on just a 25$ double up and a little bit over a million in rake in the milly maker.

    Do you guys think rake will ever drop at all?

  • blackcloud420

    Nope. Speaking of I cant find those extensions that highlight rake. Such an important feature and you have to easter egg hunt for it.

  • einars

    @19massey89 said...

    Do you guys think rake will ever drop at all?

    not a chance imo

  • tgowen

    • Blogger of the Month

    @19massey89 said...

    Do you guys think rake will ever drop at all?

    Nope, and I’ll take it a step further. In terms of cash games I could easily see a scenario play out where the big sites remove 50/50’s altogether and force you to either play DU’s with high rake or H2H games (which would likely be against sharks).

  • mchin1027

    They expose themselves to huge amounts of overlay to run these huge tournaments. They also spend millions to try and bring on new players through advertising and giving out free tickets.

    I think the complaining about rake is out of hand, these companies aren’t even profitable. It’s not like they’re sitting on stacks of cash trying to squeeze every last dollar out of us.

  • DermDerm

    • 2014 FanDuel NFL Playboy Mansion Finalist

    @mchin1027 said...

    these companies aren’t even profitable.

    Well that might be the most inaccurate statement I’ve ever read.

  • mchin1027

    @DermDerm said...

    Well that might be the most inaccurate statement I’ve ever read.

    Likewise…

    http://www.reuters.com/article/2015/09/10/us-fantasysports-idUSKCN0RA2TS20150910

    “Neither of the companies are yet profitable and the CEOs said they are in no immediate hurry to change that, instead spending money on attracting more customers and growing revenue”

  • einars

    @DermDerm said...

    Well that might be the most inaccurate statement I’ve ever read.

    except its 100% true

  • peachfuzz

    • Blogger of the Month

    How much does rake really matter in DFS other than in H2H?

    I apologize for the naivete here, but it seems to me that in GPPs I’m playing to win the top prize of a guaranteed pool, and in double ups, I’m put a dollar amount in to get double that dollar amount back. I understand it in the way of paying out larger prize monies, but I don’t see it directly affecting the amount I’m currently trying to win.

    I come from a poker background where the rake is taken directly out of the pot therefore directly affecting the amount you’re trying to win changing odds, and whatnot. My brain is not making the comparison to GPP/Double Up play.

  • DermDerm

    • 2014 FanDuel NFL Playboy Mansion Finalist

    @mchin1027 said...

    “Neither of the companies are yet profitable and the CEOs said they are in no immediate hurry to change that, instead spending money on attracting more customers and growing revenue”

    Ok technically speaking they aren’t “profitable” as of yet, except Fanduel even goes as far to admit they could be tomorrow if they chose to be.

  • DermDerm

    • 2014 FanDuel NFL Playboy Mansion Finalist

    @peachfuzz said...

    How much does rake really matter in DFS other than in H2H?

    I apologize for the naivete here, but it seems to me that in GPPs I’m playing to win the top prize of a guaranteed pool, and in double ups, I’m put a dollar amount in to get double that dollar amount back. I understand it in the way of paying out larger prize monies, but I don’t see it directly affecting the amount I’m currently trying to win.

    I come from a poker background where the rake is taken directly out of the pot therefore directly affecting the amount you’re trying to win changing odds, and whatnot. My brain is not making the comparison to GPP/Double Up play.

    It matters when in order to double up you need to beat 60% of the field, not 50. It matters when the GPP top prize is close to the same amount the company is taking in on the rake.

  • 19massey89

    These sites offers paid positions but aren’t profitable? Lol…

  • einars

    @19massey89 said...

    These sites offers paid positions but aren’t profitable? Lol…

    almost every company that isnt profitable has paid employees….how is a paid position indicative of a profitable company?

  • steveospeak

    @DermDerm said...

    Ok technically speaking they aren’t “profitable” as of yet, except Fanduel even goes as far to admit they could be tomorrow if they chose to be.

    Okay but that would only be short term thinking. FD could be profitable tomorrow, but it would drastic slow down the growth of the site, and it would probably force them to lower GPPs, possibly increase rake, eliminate or limit free rolls and other deals etc.

    Sure they could have a good short term run of profitability, but they could lose their long term upside.

  • steveospeak

    @19massey89 said...

    These sites offers paid positions but aren’t profitable? Lol…

    Amazon barely turns a profit, and in fact most years they are happy to break even, yet they are one of the world’s biggest companies.

  • mchin1027

    @19massey89 said...

    These sites offers paid positions but aren’t profitable? Lol…

  • DabsAndFrags

    Edit: IDK how this ended up here.

  • mellofellowsu

    @einars said...

    except its 100% true

    Well technically Amazon.com barely turns a profit but no one would look at their bottom line and reach a conclusion that they’re in trouble. Their profit margin is a byproduct of reinvesting revenue to expand operations.

  • dakimbell

    They aren’t profitable but their market value is worth billions of dollars. Being profitable is for mom and pop shops flipping burgers for a living.

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