Online fantasy sports is the latest big thing in the world of sports and entertainment, and it is practically impossible for sports fans to resist the urge to join in. After all, they are bombarded with advertisements on television, radio and the internet, especially when they are watching major sporting events. The month of September alone saw the major industry players, FanDuel and DraftKings spend a whopping $100 million on advertisements! The target market for this business is young men in the age group of 18 to 24 and they have responded to them wholeheartedly. After all, who wouldn’t want to win money by wagering on their fantasy sports team?
What is particularly disturbing about daily fantasy sports betting is that most people have no idea at all that casual players have very little chances of winning money this way. In reality, it is the experienced players who rake in big winnings on a regular basis. This is simply because they put in a lot of effort before placing their bets, using predictive models and detailed sports statistics to place bets on the people most likely to win.
The online fantasy sports betting business has become very much like poker in that professional players compete to get all the money available, whereas novices end up losing all of their money to them. It is not uncommon to hear about people who earn in six figures every year, merely by betting on fantasy sports. These ‘professionals’ leave very little opportunity for amateurs to earn any money. As a matter of fact, these players depend on amateur players to contribute their money to the kitty, so that the experienced players can get bigger wins!
We spoke to a young man who rakes in big money by betting on fantasy sports. A college student studying economics, he devotes at least 40 hours every week on researching about various sports so that he knows exactly what he is doing when he places bets. While luck is no doubt a factor at play here, one can never depend entirely on it. Of course, professional players love the excitement that comes when their skill and luck intersect!
Daily fantasy sports is therefore, quite disappointing for most of the people who take part in it. Nevertheless, they continue to pour money into it and the industry grows at an impressively fast rate. It is clear to see that these people have no idea that they are playing against experienced people and that pure luck cannot always see them through to a win.
The meteoric growth of the daily fantasy sports betting industry has highlighted a few problems that will no doubt have to be addressed. For one, it is leading to addictions and people are wagering far more money than they can afford. Fantasy sports do not fall under the category of gambling, but many experts believe that there is very little difference between the two. Furthermore, the industry has been hit by scandal recently when a DraftKings’ employee won a large amount of money on FanDuel after allegedly using company data to get an unfair advantage.