Daily Fantasy Sports Strategy & Picks
Daily fantasy sports (DFS) is an evolving piece of the US online sports betting landscape, rising from relative obscurity to a place atop the consciousness of the fantasy sports consumer. Although forms of daily fantasy sports date back to as early as 1990, it was pioneered by several smaller websites in 2007 that were attempting to replicate the success of online poker. Credit for being the “Godfather of DFS” has largely gone to Nigel Eccles, who is the founder of FanDuel.
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The DFS market is currently undergoing some movement after an early shakeout in the marketplace. The current market leaders are DraftKings and FanDuel, who are largely close to each other in terms of market share, with several other players chasing them.
If you don’t know what daily fantasy sports is, or how it started, it allows a player to draft a new lineup every day from a large variety of sports subject to a salary cap. Players then compete against other players in either cash games or tournaments. The format has achieved enduring popularity and has been replicated among many sports, both domestically and internationally.
Recently, the advent of pick ’em games have brought a new wrinkle to DFS. These games have similar tactics to over/under wagers or parlay bets.
Where to Play Daily Fantasy Sports
A number of operators have emerged as daily fantasy sports continues to evolve. Below is a closer look at the field.
Fliff
Fliff is a unique DFS option that’s available throughout most of the United States. The platform gives players the option to check out sweepstakes and free-to-play games. Plus, new Fliff users can start out with a welcome promo.
Underdog Fantasy
Underdog DFS burst onto the scene in 2020 with its best ball fantasy games. Its pick’em draft games have become quite popular. Other options such as battle royale games, drafts and big tournaments have been well received by players. New users can get up to $1,000 in Bonus Cash on Deposit + a Pick’Em Special. The Pick’Em Special is not available to users in Kansas, Maryland, Michigan, Mississippi, New Hampshire, New Jersey, Ohio and Pennsylvania.
Onyx Odds
Onyx Odds stands out in the world of DFS as it’s considered a social sportsbook. The platform, which launched in late 2024, offers two forms of in-game currency: Onyx Cash and Onyx Coins. While Onyx Coins are used for fun, Onyx Cash can be redeemed for different prizes.
Rebet
Rebet is a widely available social sportsbook that allows users to use virtual currency such as Rebet Cash and Rebet Coins. Rebet is currently available in 47 states across the U.S., with only Idaho, Nevada, and Michigan lacking access to the platform. New users can sign up with the promo code “LINEUPS“ for a match of up to 100 in Rebet Cash on their first purchase.
Sleeper
The Sleeper betting app has been on the scene since 2017 and has drawn interest with its season-long DFS offerings. It has expanded its catalog with pick ’em and over/under games to appeal to a broader audience. Games involving all major sports are available.
Betr
Betr joined the market in 2023, boasting simple ways to play DFS with pick ’em games. Over/under games looking at if players will exceed or fail to reach a certain stat or point total are mainstays. In parlay fashion, you can add more picks to boost your payout.
DraftKings DFS
Founded in 2012, DraftKings quickly set the standard in salary cap daily fantasy sports. It has pivoted to offer more flex positions to create more variance. DraftKings has become renowned for its tournaments that boast huge prize pools.
SportsMillions
Another excellent option for DFS fans is SportsMillions. The platform allows users to draft their lineup and predict how each player will perform through basic over/under options. SportsMillions users also have access to the Blitz’em game for jackpot multipliers. A social casino is also available with SportsMillions.
Thrillzz
If you’re looking for an experience more like a classic sportsbook, you’ll want to check out Thrillzz. The daily fantasy sports app is a unique sportsbook-like experience that gives users the shot at different rewards for correctly picking the outcome of games. In addition to paid Sweeps Coins, there are also free-to-play options available with Thrillzz.
ParlayPlay
Customers in 27 states across the United States — including Florida, Texas, Illinois and North Carolina — can start playing DFS games with ParlayPlay and win up to 155x their original stake.
FanDuel
The FanDuel app actually got into the game in 2009, and like its arch-rival DraftKings it attracts players with lucrative tournaments and enticing prizes. FanDuel remains a force in salary cap DFS. But it also offers unique qualifier tournaments you play in person as well as attractive single-game play.
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UIGEA Loophole
DFS was created in response to a loophole that existed in the Unlawful Internet Gaming Enforcement Act. This legislation, enacted in 2006, treated fantasy sports as a carve-out from the prohibition on internet gaming, accepting the fact that it was a “game of skill” and not a game of chance. The drafters of UIGEA were not focusing on daily activities, but rather clearly had in mind the season-long fantasy leagues that had become a large part of the national vernacular. There were several stipulations in the UIGEA that permitted DFS. First, participation in a contest could not be based on current participation by an actual team. In other words, drafted teams had to feature players from across professional sports teams. Another major consideration was that tournaments had to feature guaranteed purses that would be distributed whether the tournament filled or not.
DFS operated in what was considered to be a legal gray area, premised on a loophole in major legislation. Whether DFS operated in a state was dependent on its interpretation of state gambling laws. There were certain states in which the DFS operators were not willing to assume the risk of operation since it believed that those particular states made it illegal to run DFS games there. Eventually, the industry’s skyrocketing notoriety drew the attention of regulators. DraftKings and FanDuel, flush with cash after raising large amounts of venture capital, embarked on large-scale advertising campaigns. Soon, it was virtually impossible to tune into to any sports game any not see at least one commercial for one of the two operators. This ad campaign, while successful in increasing the operators’ attention among players, also served to increase the scrutiny that they received from law enforcement. The heightened awareness also resulted in legal challenges as the operators faced class action lawsuits alleging that they were engaging in false advertising.
DFS Scandals
In 2015, the DFS industry was rocked by a series of scandals that achieved unwanted notoriety for the operators. Employees of the DFS sites, while forbidden from entering games on their own company’s platform, were allowed to participate in games on rival platforms. This yielded an informational advantage for these players. Knowing which players were going to prove popular among DFS gamers for a given contest is a key piece of information to have. In some instances, the key to success in a DFS contest is finding an under-owned player who represents a value play. Often, values persist across DFS platforms so having access to DraftKings player information could help win a FanDuel contest. On this occasion, a DraftKings employee won a $350,000 jackpot on FanDuel. Although the employee did nothing illegal, nevertheless, there was a perception of wrongdoing.
This sparked an investigation by the New York Attorney General Eric Schneiderman. It was Schneiderman’s belief that DFS operators were offering an illegal gambling pool. Schneiderman issued a cease-and-desist letter to DraftKings and FanDuel, ordering them to cease operations in the state. Including in Schneiderman’s letter was his opinion on the legality of DFS and the two companies’ business practices. As a result, DFS was temporarily forced out of New York. However, the operators launched an immediate lawsuit and a lobbying campaign in order to regain access to the critical New York market. In addition, to the challenge faced from New York, other states began to ratchet up the pressure on the DFS industry too and the industry was launched into a fight for its survival. Although the operators received a stay of Schneiderman’s order in court, the legal pressure caused various payment processors to stop accepting monies from New York residents.
Types of Games
Historically, DFS platforms have operated three different primary types of games. These games involve either direct competition with another player or competition in a tournament that can include as many as a million entries.
Head-to-Head
These contests allow participants to compete directly against other players in a winner-take-all match. Each contestant is free to draft any player regardless of which players are on the opponent’s team. A subset of this category is three player games, which are also winner-take-all. After various reforms, players can now see the skill of the players against which they are competing so they can avoid competing against professional DFS players. Head-to-head contests are considered to be “cash games.”
50/50
These contests involve a defined pool of players. For example, 10 players can enter into a 50/50 pool. The top half of the players by finish are winners and the bottom half lose their entries. For example, if the entry fee is $10, the winners receive $18, which reflects the DFS operator’s “rake.” 50/50 contests have become rarer as the industry matures and have largely given way to other types of contests. These games have morphed into “double ups” and “triple ups” where a certain number of players double or triple their winnings. These pools are guaranteed and the number of winners does not change regardless of the number of entrants.
Tournaments (GPP)
This type of DFS contest is the one that has drawn the most attention and has helped DFS achieve its position in the lore of gamers. These pools award prizes to usually roughly the top quarter of finishers. It is the top prizes that help DFS draw the attention. Both FanDuel and DraftKings have tournaments during football season (and to a lesser extent for golf) that have top prizes of $1 million or more. The size of these jackpots naturally leads to media attention which becomes free advertising for the operators. It is not uncommon for professional players to have dozens, if not hundreds of entries into these contests. Tournament entries are found at all different price points and skill levels. In addition, FanDuel and DraftKings run championships for which players can either win or purchase entries.
DFS Revenues
According to filings with New York, total DFS revenue currently stands at $335 million. Although there are no firm numbers for revenue by state, it is thought that California, Texas and New York are the largest markets for DFS. The growth in the industry has leveled off as the companies have faced operational challenges forcing the operators to look elsewhere for growth potential.
FanDuel Merger
FanDuel had attempted a merger with DraftKings which failed due to antitrust concerns. In the wake of that, FanDuel needed to shift focuses and it did so when it was acquired by European sportsbook operator Paddy Power. For FanDuel, this represents an attempt to move beyond its DFS beginnings into sportsbook and other offerings. For Paddy Power, the acquisition of FanDuel allows it to leverage FanDuel’s large existing customer base to enter the rapidly expanding US sports gaming market.
Both FanDuel and DraftKings have begun to diversify their offerings to take advantage of the liberalized sports gaming environment. For example, FanDuel has begun the offer its version of the popular “Survivor Pool,” where entrants have to pick one game correctly each week to stay alive in the pool. DraftKings is offering similar season-long products. In fact, the two operators can no longer be thought of as strictly DFS operators. Instead, they are morphing into hybrid DFS and sportsbook operators.
The Next Evolution of DFS Games
Although DFS legality ultimately depends on state law, the Supreme Court’s decision in Murphy has given the operators a new lease on life. DraftKings and FanDuel have expanded their offerings because the traditional types of games that are listed above. Here are some of the newer DFS games that are offered.
Flash Draft – DraftKings allows players to draft a team based on how they think a player will perform in a specific quarter of a football game. The draft is held immediately after the prior quarter ends and players have 15 seconds to make their draft decisions.
Texas Pick ’em – DraftKings has a new contest that allows players to win prizes based on how many games they pick correctly. These picks are outright and not versus the spread. This is a traditional game that is now available online.
FanDuel Guru – This is a draft wizard that assists more inexperienced players and prompts their decision-making by providing them with advice and metrics. In essence, this game becomes a free version of a lineup optimizer.
Both fantasy operators have offered games where players can pick players from a range of players as opposed to from a larger pool based on a salary cap. This game is intended to provide a “quick draft” option that will allow players to assemble a team in a shorter time with less research necessary.
Online Sportsbooks
In fact, DraftKings Sportsbook recently made its first full-scale foray into sports betting. The company entered into a partnership in New Jersey with Resorts Casino to offer an online sportsbook which went live in August. DraftKings had been preparing for legalized sports gaming and was ready to hit the market quickly soon after New Jersey legalized sports gaming. DraftKings offers both mobile and web-based betting and has introduced novel in-game betting opportunities. As more states legalize sports betting, like Pennsylvania, New York and West Virginia, DraftKings will be at the forefront; they will leverage the experience that gained in New Jersey.
FanDuel Sportsbook also promises to be a viable player in the mobile sports gaming market. FanDuel had entered New Jersey as the operator of the physical sportsbook at Meadowlands Racetrack. In September, it opened its online sportsbook and mobile app. The expertise of its new parent company should help FanDuel establish and grow its national sportsbook brand.
