Are FanDuel and DraftKings a Scam or Are They Legit?

Are FanDuel and DraftKings a Scam or Are They Legit?

Looking for more information on the FanDuel and DraftKings scam? We have nearly a decade in this industry, have covered dozens of companies that have popped up and disappeared and have gotten to know the people behind each DFS website in the industry. We have a clear understanding of exactly how these sites operate.

The truth is if you landed on this page then you already have an agenda, and probably won’t like what we have to say. Here are the cliff notes for this article:

It’s not them, it’s you. If you think FanDuel and DraftKings are a scam simply because you can’t win, that’s a you problem. While the rake makes it extremely difficult to win long term, if you are entering the right contests and building sound lineups, you should be winning some contests each week.

It’s all on the up-and-up. We all know the Ethan Haskell scandal, it rocked the industry, and to this date many people that work in DFS are not only upset that it happened, but are upset with the way the websites, and certainly Ethan, handled it. That being said, employees from any of the major DFS websites are no longer allowed to compete in contests, frankly it would be pointless for them to because they would never receive a payout.

While it isn’t a scam, it isn’t perfect. We currently only have 5 websites that we would consider major players in this industry. FanDuel and DraftKings are clearly the big two, and millions of players continue to play on these sites every week. They offer the bigger contests that new players love to chase. Contests with terrible odds, and insanely high rake. You have a 25% chance to win 75% of the money. There are other websites with six figure contests where 25%-30% have a shot at 90% of the entry fees. As we go through this article you will see it all boils down to contest selection.

Contest Selection

As a new player, you see that six-figure top prize, with only a $3 entry fee, and you want to chase that dream. It’s understandable, and certainly carries better odds than playing the lottery, but isn’t a great approach to daily fantasy sports.

We started marketing for a company called Draft (or about two years ago. Every player we turned on to Draft, came back and told us that they love it… it’s so much easier to win. Well, no kidding. Everything is single entry, small contests, with odds that are generally 33%-50%.

Not only that, but the rake is a flat 10% across all contests. Rake for the 2017 NFL season on FanDuel and DraftKings tournaments is climbing over 20%. Now, the websites don’t have to be a scam for it to be hard to win money. You are playing a ton of pros, many of whom are entering hundreds of times, and the site is taking 20%+ off the top.

Adjust your approach. It doesn’t matter if you play on FanDuel, DraftKings, Yahoo, Draft, FantasyDraft, or anywhere else… focus on what we call cash games. Head-to-head contests, 50/50’s, double-ups, triple-ups, etc.

If a contest doesn’t have odds 25% or higher, I would never consider it. I want 90% of my total entry fees to have odds of winning over 33%. The other 10% can be reserved for entering my favorite lineup into the lottery and hoping for the best.

Are FanDuel and DraftKings a Scam

So, back to the original question, are FanDuel and DraftKings a scam? Not at all. This industry is not only heavily regulated, but it has taken serious investment funds from some of the biggest companies in the world.

Not only are names like ESPN, Fox, and even the professional sports leagues behind FanDuel and DraftKings, but companies like Kraft and Disney. All of these investors are performing due diligence insuring there is minimal risk involved with this investment.

Furthermore, both FanDuel and DraftKings are aware that they probably can’t survive another major scandal. They barely made it through the first one. Both companies have showed a complete commitment to ensuring that their platforms are secure, and 100% fair to their players. Both websites have a landing page devoted to guarantees they make about fair play. Check them out for more details:

FanDuel Player Rights

DraftKings Average Results