Yahoo Daily Fantasy Sports

Yahoo Daily Fantasy Sports

In news regarding the ever increasing popular daily fantasy sports industry, Yahoo is currently in the process of developing a concept with a view to an imminent release of a daily fantasy game expected to be available from the summer.

yahoo-fantasy-sportsThe reports by Eric Fisher of the Sports Business Journal will come as a surprise to some and will have market leaders DraftKings and FanDuel looking over their shoulders in anticipation. Yahoo are the second big name to enter the ring in recent months after it was reported by LegalSportReport that the parent company of PokerStars, Amaya will also enter the daily fantasy scene this coming year.

Although it is relatively unknown what these two big companies will bring to the industry, it will certainly be of concern to the market leaders, FanDuel and DraftKings. What these two new market entrants will bring is big name recognition and a strong userbase which will allow them to fly out from the blocks and start taking chunks of the market. With Yahoo’s already large user base, they are already entering the industry with a strong foundation of trust amongst their customers, so gaining confidence from them with their deposits will not be a problem.

What Approach Will Yahoo Take to DFS?

Fisher states in his article that Yahoo plan to take a unique approach to daily fantasy sports in order to create a niche in the market which they hope will ultimately allow them to eventually become market leaders.

It is suggested that the different ways in which it can approach this is by catering for an improved handling of the season long userbase currently competing on the platform.
It is also suggested that Yahoo daily fantasy sports could water down and remove the edge for experienced DFS player and create a DFS product that will give gamers a different set of rules and strategies to consider.

Before the shock announcement, rumors were strife that Yahoo was considering removing itself from the paid fantasy game altogether with this speculation created after Yahoo failed to release its Pro Leagues for the Major League Baseball season amid fears about the legality of the online sports platforms. However, these rumors were soon shot down after the recent announcement of the imminent involvement in the daily fantasy game.


Daily Fantasy Sports Industry Effect

Despite Yahoo announcing their entry into the daily fantasy game causing their main rivals to look cautiously over their shoulder, the news that such a huge and respected name is entering the platform means that the industry will continue to thrive further.

Subsequently it will also mean that the players who have always been a little bit cautious in putting their money on a concept they don’t know so much about will now see the Yahoo name and will instantly become intrigued about such a venture and more so than not, won’t have any problems placing their money on the line. Competition from external sites, especially ones with a burgeoning reputation such as Yahoo and PokerStars, will inspire every site within the industry to step its game and provide better software and options for players. If they fail to do this then they risk losing their customer base to sites with a more appealing service. Healthy competition not only hugely benefits the players but it also brings legitimacy to the industry.

This is a sentiment shared by DraftKings themselves who issued a statement acknowledging the fact that Yahoo’s involvement is a very encouraging sign for the industry. The truth to the matter is that FanDuel and DraftKings have such lead on these new names that in the end they will be fine. With Yahoo announcing that their game will be different, if some of their players do jump ship I’m certain it will be to compete on 2 or 3 different sites, rather than be Yahoo or FanDuel or DraftKings exclusive.

Yahoo Advertising Effect

yahoo-fantasy-footballOne effect that can’t be understated is that Yahoo’s entry into daily fantasy sports is one that really hinders both DraftKings and FanDuel’s advertisement abilities. Yahoo is the second largest season-long fantasy football website, and one of the oldest names in the industyr. Fantasy players using Yahoo will likely only see advertisements offering Yahoo’s very own daily fantasy sports as they will look to avoid selling themselves out but offering advertisements for their main competitors.

However, the bite side in this is that they will experience reduced revenue offered by those rivals to advertise on their platforms. With DraftKings recently securing significant investment from Disney, who are major owners of ESPN, the deal also included an agreement for DraftKings to pay $500 million for almost exclusive advertising rights on their platforms so whilst they won’t get the attention of Yahoo users, they won’t feel the pinch all so much like FanDuel could who will be without exclusivity on both Yahoo and ESPN. I guess we can expect FanDuel to spend like crazy during games on Fox and CBS.

With the start of the NFL season fast approaching, the entry to the industry of these two huge brands will be sure to add intense competition amongst the rivals which will ultimately be to the benefit of the daily fantasy sports players. With added options and features to be surely now available, there will now be a platform for all types of players to spend their money in a safe and comfortable environment for them. It will also be extremely interesting to see how DraftKings and FanDuel both respond to the recent announcements in order to hang on to their leading market share.

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