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FanDuel/DraftKing commercials-fbi-involved-now-lol/rcials - FBI Involved Now. lol


Fade2BlackAndBlue

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The h2h leagues are definetly weekly fantasy and i think when its all said and done these companies will get to continue to offer this in every state. The problem is with the large big money tournaments which are no more than lottery tickets or keno/bingo cards and this is where they are making the majority of their money and when it goes away eventually they wont be able to make these large profits and probably run themselves out of business. 

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they wont be able to make these large profits and probably run themselves out of business. 

FS and DK are both not profitable right now, despite big revenues. Their customer acquisition costs are sky-high. DraftKings' cost is ~$190 per user, FanDuel is spending ~$110 per user. At the beginning of the NFL season this year, DK had spent $82million on commercials for 2015, and was airing one commercial every 1.5 minutes in one week in September.

They can't keep up this spending level and still expect their investors to be happy.  As Shark Tank's Mr Wonderful says, "if you're not making profitable now with that revenue stream, how do you propose that I get my money back?"

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