Are you one of the millions of people that loves sports, loves fantasy sports even more, and have been testing your fantasy skill on one of the many daily fantasy sites? Then, are you one of the 90% of that group that can’t seem to win no matter how much time you’re putting into it? Allegations arose this week about possible insider trading at DraftKings and Fanduel.
This week stirred up a bit of a controversy in the daily fantasy sports world when news of the industry’s version of “insider trading” leaked. An employee at DraftKings published in a forum the player’s ownership % for week 4 a bit prematurely, before anyone should’ve had that information. He apologized for the mix up, but it doesn’t stop there.
First, you need to know that it’s policy at all these companies that their employees may not play on their sites. However, an employee at DraftKings can play on Fanduel and vice versa, which is pretty common. That same DraftKings employee went on to win over $300,000 on Fanduel that same week.
Interesting. Let me first say this: the ownership % he had from draftkings offered about 1% of advantage in him winning on Fanduel. Fanduel publishes their ownership rates after lineups lock on Thursday for the Thursday – Monday leagues. A lot of people see differently, but in my opinion that’s not what this is about. There’s a bigger issue here. How much info is seen by how many employees? Are these employees getting a bigger advantage on other sites with the info they have? Are they selling this info or giving it to family members or friends? Really makes you think.
If you’re not already aware, let me be the one to break it to you that on these sites, roughly 90% of the money paid out goes to the same 1% of people every single week. “The pros.”
Conclusion? Don’t expect to make a living playing daily fantasy sports unless you’re part of the 1%. And to be in this 1%, ironically about 1% of it is knowing baseball or the sport you’re playing, and 99% is knowing analytics (not sport specific stats, but more like the stats class you failed in college). You’re also going to have to equip yourself with computer softwares and scripts built for you to enter different combination of lineups by the hundreds into contests. Good luck!
But hey, for a couple bucks a week with a little chance to win, it still is a more improved version of fantasy sports and makes the games a little more fun to watch.
With all that being said, be sure to check out our shameless self promotion and click on the banner below to get yourself started with a DraftKings account, and try it out for yourself!