The advertisements for Daily Fantasy sports games are nothing short of obnoxious on TV in the States. Obnoxious in terms of volume and indeed content. The repetition is nauseating, and the content is wildly misleading. They try to pawn themselves off as cash machines for the average punter, ‘Hey, Joe in Philly won a billion dollars sitting on his backside playing Fantasy sports, which means, so can you!’.
That’s just a gigantic lie. Big money has already completely ruined Daily Fantasy for the average player.
Detailed reports have shown that groups and big money players with heavy financial backing are producing automated teams and entering 500-1000 times a day on the popular sites, effectively flooding the games with super-well researched, technically almost perfect teams. Joe Punter signs up to a tournament, enters a team, these big-money backed guys flood the same tournament with 500-1000 teams, wildly pushing the odds in their favor to win the tournament and collect the cash.
Effectively, regular Joe Punter players have a 10% chance of winning the big money tournaments, while big money players and companies are raking in as much as 90% of the profits.
Translation: Stay away, unless you are going to enter big numbers of teams at a high cost. Meanwhile, it’s not hard to envision Daily Fantasy ‘going away’ much like regular online sports gambling.
Daily Fantasy is big money, and big money attracts the attention of some of the biggest money in America, the Casino moguls in Vegas. The men who make gambling in the USA tick, and who control same at every point, will be noticing the incredible cash flow that currently pouring into Daily Fantasy portals. The major players, two of them who I’m not going to name, are worth over a billion dollars each already.
If Vegas decides they want in on this action, and start producing their own, highly profitable, Daily Fantasy games, perhaps packaging them with their ‘legitimate’ sports-book experiences, watch out current Daily Fantasy sites. All Vegas would have to do, to create a monopoly, would be throw huge amounts of cash into the campaign funds of a friendly senator, ask him (or her!) to get Daily Fantasy banned everywhere except Vegas, and sit back and enjoy the cash flow.
This is exactly what Vegas did with online sports betting in the USA. They stuffed Senator Bill Frist’s campaign coffers with hundreds of thousands of dollars (that we know about) and he in turn forced through a bill banning online sports gambling, pushing all sports betting to Vegas. It was that simple.
From: Bill Frist, the downfall of online poker and jobs being lost in Dublin and the rest of the World.
The publicly available breakdown of Frist’s campaign funding from previous years makes fascinating reading. It is all there in black and white. For the period 1997 to 2002, Harrah's Entertainment contributed $14,250 to the Frist campaign. What does Harrah's Entertainment do? Glad you asked. Caesars Entertainment Corporation (formerly Harrah's Entertainment from 1995 to 2010) is a private gaming corporation that owns and operates over 50 casinos, hotels, and seven golf courses under several brands.
How about Mandalay Resort Group, which, in 2004, contributed $10,000, that was disclosed, to the Frist campaign. Mandalay Resort Group was, prior to its purchase by MGM, a hotel-casino operator based in Las Vegas, Nevada. Its major properties included Mandalay Bay, Luxor, Excalibur and Circus Circus, as well as half of the Monte Carlo. In terms of market capitalization, it was one of the largest land based casino operators in the world.
If you think Vegas are going to ignore thousands of millions of dollars pure profit, you are more naive than those who think online sports betting was banned in the USA for any moral reason.
It was all about the money. It always is.
Just bear this in mind in months to come when you spot news report that a politician is eager to shut down the evil that is Daily Fantasy sports. A quick check of his or her freely accessible campaign funding reports will show a number of Vegas Casino names involved.
It’s not hard to tie this all together. Just follow the money.