How A lot Cash Did DraftKings, FanDuel And The DFS Business Make In The Previous Yr? Now We Know Virtually Precisely

That’s how a lot income the daily fantasy sportsbook business in made prior to now yr, beginning in September of 2016 and ending in August of this yr, the overwhelming majority of it by DraftKings and FanDuel.

The determine is in line with knowledge obtained by Authorized Sports activities Report from a freedom of data request in New York state, which included knowledge throughout all jurisdictions and in addition for NY particularly.

The information accounts for income in all jurisdictions that operators registered in New York serve.

A more in-depth have a look at DFS income, deal with

Right here’s what the income determine from the New York State Gaming Fee of greater than USD327 million accounts for.

DFS websites which are registered should report their whole deal with (entry charges) and income — for all areas — to the state of New York on a month-to-month foundation. Just about each web site in existence is registered in New York.

Due to this fact, the determine must be fairly correct in capturing the complete amount of cash flowing by licensed DFS websites, in all places. New York enacted its DFS regulation in August of final yr, and DraftKings and FanDuel began serving the state nearly instantly.

The one caveats? Some websites weren’t instantly licensed by the state, and their deal with and income would solely be counted from the time they had been licensed. NYSGC additionally cautions that the figures are “unaudited and topic to alter.” It additionally doesn’t seize income in the remainder of the world — i.e. European operators not licenses in New York — however it is a comparatively small piece of the pie.

The numbers aren’t damaged down by operator, so this knowledge doesn’t inform us how a lot marketshare DraftKings and FanDuel loved.

USD3.2 billion in deal with

The entire quantity of deal with for all areas was simply over USD3.2 billion over the identical time interval.

That roughly falls in step with previous estimates for the quantity of entry charges the websites dealt with.

The most important months for DFS

The information obtained by LSR is damaged down by month.

The most important month by way of deal with was November, when the websites noticed USD419 million in entry charges. The smallest was July, with USD164 million.

Right here is the deal with by month for all operators in all jurisdictions:

Month Deal with
September 2016 USD341,646,436
October 2016 USD359,535,740
November 2016 USD419,302,327
December 2016 USD376,829,057
January 2017 USD337,485,960
February 2017 USD182,712,977
March 2017 USD232,269,984
April 2017 USD247,084,673
Could 2017 USD209,693,930
June 2017 USD180,035,908
July 2017 USD164,487,825
August 2017 USD177,482,936

The New York a part of the equation

The information permits the state of New York to calculate and monitor how a lot tax the DFS operators are paying. Deal with for simply New York state was about USD315 million; income for NY solely was about USD32 million.

For the 12-month interval, the websites paid greater than USD4.8 million to the state. The state taxes DFS gross income for customers in New York at a fee of 15.5 p.c.

The share of whole deal with and income from New York gamers was round 9 or ten p.c in each month.

That underscores once more precisely how essential it was for the DFS business to realize authorized readability within the state, after state legal professional basic Eric Schneiderman issued stop and desist letters to DraftKings and FanDuel in late 2015.

The place does that imply the DFS business stands?

The information doesn’t paint an image of an business experiencing general development, no less than for this snapshot in time.

A report from Eilers & Krejcik Gaming estimated deal with for all operators, in all places, for the calendar yr in 2016 at about USD3.2 billion as effectively. Income for final yr was roughly USD350 million, in line with that very same estimate. If these estimates are correct, meaning the DFS business has plateaued or maybe even contracted barely, no less than within the first eight months of 2016.

DraftKings seems to have taken some marketshare away from FanDuel, in line with different channel checks. However the brand new knowledge exhibits the market has not grown in a big approach. Of word: DraftKings added Germany to the listing of nations it serves beginning in March.

The websites have made advertising pushes to begin the NFL season. That features Draft, which has made a considerable effort within the latter half of 2017. And the websites generate lots of income through daily fantasy soccer. It’s additionally the beginning of the NBA season and daily fantasy basketball, which accounts for an rising share of deal with and income.

So the standing of the business would possibly grow to be extra clear after the subsequent few months.