Yahoo! Inc. (NASDAQ:YHOO) is quickly catching up with the likes of FanDuel and DraftKings. The company is making good progress with its daily fantasy sports platform.
Yahoo seems to have made the right call to go with its own platform unlike ESPN which teamed up with DraftKings. According to a research firm called SuperLobby, Yahoo was the first firm in fantasy sports apart from FanDuel and DraftKings to include fees-to-prizes ratio. This means the company makes more in entry fees than in the wins paid out.
This strategy has been significant towards the growth of Yahoo’s platform despite the late entry into the fantasy sports scene. Yahoo recently got into the game while DraftKings and FanDuel have been handling fantasy sports for a few years.
Yahoo recently reduced its price pool from $1 million to $750,000. Some analysts feel that the decision brings down the positive gains. SuperLobby’s CEO, David Coperland thinks that the decision is a good indicator of how well Yahoo is aware of its market. It also indicates that the company can optimize the tournaments. Coperland thinks that the company has done a splendid job especially with minimal spending marketing. Yahoo’s current pace is a good sign that it is doing well in Fantasy sports and will continue growing.
Yahoo still has a long way to go as far as reaching the capacity of its well established rivals is concerned. DraftKings and FanDuel successfully managed to turn the niche in fantasy sports into a billion-dollar business. Yahoo seeks to duplicate the same odds and take a share of the lucrative pie.
DraftKings managed to bring in $25 million from entry fees on October 11 while FanDuel raked in a cool $20 million. Yahoo was strides a couple of miles behind at $1.3 million but that is far much better than the other daily fantasy platforms that were monitored by SuperLobby. Either way, Yahoo is still making good gains from Ads especially those posted by the fantasy platforms.
Sources: Fortune.com
