By now even the most casual NFL fan has to be sick and tired of seeing all the endless ads during NFL games for daily fantasy sports sites. But daily fantasy sports sites have raised hundreds of millions of dollars in financing over the last few years and those ads are likely here to stay for the time being or at least the entire 2015 NFL season.
An estimated 3.9 million people will play daily fantasy sports in 2015 with the majority of those players putting their money into NFL fantasy games. A number that every fantasy sports player should know is exactly what percentage of their money being wagered daily is kept by the websites as the takeout, vigorish or whatever you want to call it. It’s the amount of money that the daily sports fantasy sites like FanDuel, DraftKings and Yahoo keep as the cost for you playing in their games.
The number is important because then the gamblers on the fantasy sports websites can compare the takeout or the percent being kept with other forms of gambling. In daily fantasy sports players are generally charged from 8 to 10%. That is the percentage that the daily fantasy sports sites are keeping from the total amounts being wagered.
So if you are wagering $100 in a day on a fantasy sports website, only $90 to $92 of your money will be paid out to the winners. The other $8 to $10 is being kept by the website to pay its bills and hopefully make a profit. How does that compare to other forms of gambling?
It certainly beats horse racing where the takeouts average somewhere in the vicinity of 20% including exotic bets. But 8 to 10% is a far greater amount than most people who go to casinos face unless they play slot machines. Takeout rates for blackjack are as low as .5% for players who know what they are doing. Craps is .8%, video poker is .5% to 5%, baccarat is 1.06%, and roulette is 5.5%. Slot machines can vary from 0% to 17% depending on the state your playing in and the type of machine.
Other numbers fantasy sports gamblers should be aware of are that an estimated 91% of fantasy sports profits are being won by just 1.3% of the players. In many of the big money games offered by the sports fantasy sites, just one player may control 5% to 10% of all the lineups in the contest. Obviously, that player has a much better chance of winning the game than the average player who has just one lineup entered.
The fantasy sports websites do not care if you win or lose. All they want is your money because they keep 8 to 10% of the money you wager with them. You are not competing against the sports fantasy websites you are competing with the other players who have also put money into the games. An estimated $60 million was taken in for entry fees by FanDuel and DraftKings combined the first week of the NFL season so those two companies kept $4.8 to $6 million of that money.
Fantasy sports fans would be far better off just playing against each other without using one of the fantasy sports websites because then all the money wagered in each game would go back to the winning players.