(public).sospep.subjects ~ view article ~ how-daily-fantasy-sports-industry-turns-fans-into-suckers

<h1 style="text-align: center;">how the daily fantasy sports industrys turns fans into suckers</h1>
<h2>[WHAT]</h2>
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<li>] by Jay Caspian Kang @nytimes.com - Since the start of this N.F.L. season, I have lost roughly $1,900 on DraftKings and FanDuel, the two main proprietors of daily fantasy sports (D.F.S.). I play pretty much every night.&nbsp;</li>
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<h2>[WHY]</h2>
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<li>]&nbsp;</li>
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<h2>[WHERE]</h2>
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<li><strong>] READ THE FULL ARTICLE</strong></li>
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<li>]&nbsp;<a href="http://www.nytimes.com/2016/01/06/magazine/how-the-daily-fantasy-sports-industry-turns-fans-into-suckers.html?_r=0" target="_blank">http://www.nytimes.com/2016/01/06/magazine/how-the-daily-fantasy-sports-industry-turns-fans-into-suckers.html?_r=0</a></li>
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<h2>[WHEN]</h2>
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<li>] 2016-01-06</li>
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<h2>[EXAMPLE]</h2>
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<li><strong>] disclosure: i am a sports dude,</strong>&nbsp;i am the target demographic for the daily fantasy sports industry.</li>
<li>]&nbsp;For <strong>the first 10 months of 2015, DraftKings and FanDuel spent more than a combined $200 million on advertising,</strong> a surge that peaked at the start of the football season,&nbsp;showed regular guys like me who had won, in the DraftKings parlance, &ldquo;a shipload of money,&rdquo; there were DraftKings lounges in N.F.L. stadiums, FanDuel sidelines in N.B.A. arenas and daily fantasy advice segments in the sports sections of newspapers and all over ESPN, which, during the first weeks of the N.F.L. season, felt as if it had been converted into a nonstop publicity machine for DraftKings.</li>
<li>]&nbsp;<strong>As of August, both companies had billion-dollar valuations</strong> and promised weekly competitions with huge payouts and fast and easy withdrawals.</li>
<li>]&nbsp;<strong>on Sunday, Sept. 27, Ethan Haskell, an employee at DraftKings, inadvertently published information that could have given him an edge over his competitors.</strong> <strong>That day, Haskell won $350,000 in prizes on FanDuel.</strong> (DraftKings later concluded, in an internal review conducted by a former United States attorney, that Haskell obtained the information after the deadline for submitting his lineup in the contest and couldn&rsquo;t use it for profit.) Haskell&rsquo;s accidental disclosure and subsequent bonanza caught the attention of several media outlets, including The Times, leading to a volley of articles and columns that placed the operations of daily fantasy sports under close scrutiny.</li>
<li>]&nbsp;In the three months that have passed since Haskell&rsquo;s post,<strong> DraftKings and FanDuel have been reeling</strong>. In October, Nevada joined Arizona, Iowa, Louisiana, Montana and Washington on the list of states where DraftKings and FanDuel cannot be played.&nbsp;On Nov. 10, Attorney General Eric Schneiderman of New York issued cease-and-desist letters to the two companies, ordering them to stop accepting bets in the state. (The order has now been stayed, and both companies continue to do business in New York. Last week, Schneiderman asked a judge to order DraftKings and FanDuel to reimburse the money New York State residents have lost on the site.)&nbsp;</li>
<li>]&nbsp;At the time, the crusade against D.F.S. felt a few degrees too hot &mdash; DraftKings and FanDuel struck me <strong>as obviously gambling sites, but the game itself felt sort of like homework.</strong> You research players. You build a spreadsheet. You project data and enter a team. You watch the team either fulfill or fall short of your projections. The next day, you start over again. The ruinous thrill of other forms of gambling &mdash; sports betting, blackjack, poker &mdash; just wasn&rsquo;t there.</li>
<li>]&nbsp;Instead, <strong>I came across a different sort of problem: a rapacious ecosystem in which high-volume gamblers, often aided by computer scripts and optimization software</strong> that allow players to submit hundreds or even thousands of lineups at a time, repeatedly take advantage of new players, who, after watching an ad, deposit some money on DraftKings and FanDuel and start betting.</li>
<li>]&nbsp;Each company took advantage of language in a federal law that allowed them to plug directly into two huge, overlapping populations &mdash; fantasy sports players and gamblers.&nbsp;&nbsp;DraftKings and FanDuel rose to prominence &mdash; and now, seemingly, have become derailed &mdash; in the course of a single N.F.L. regular season.</li>
<li>]&nbsp;The betting economy that has been created is highly unstable and corrupt.&nbsp;<strong>&ldquo;The idea that these sites exist so that regular guys can make a lot of money playing daily fantasy sports is a lie,&rdquo;</strong> Harber told me. &ldquo;FanDuel and DraftKings are optimized for power players to rape and pillage regular players over and over again.&rdquo;</li>
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<h2>[HOW-TO]</h2>
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<li>]</li>
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<h2>[REFERENCE]</h2>
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<li>] SRC = HN, <a href="https://news.ycombinator.com/item?id=10850762" target="_blank">comments</a></li>
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<h1 style="text-align: center;">&nbsp;</h1>

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