Locked in a battle for supremacy in the DFS market, FanDuel and DraftKings recently announced eye-popping, multimillion dollar GPP’s for week one of the NFL in September. FanDuel spoke up first, boasting of a $5 million guaranteed contest, with $1 million going to the first place finisher. Soon after, DraftKings dwarfed its rival’s offering with a $10 million Millionaire Maker contest and a top prize of $2 million.
The two massive GPPs have undoubtedly made a splash in the DFS community and will surely attract new players to the game. But after analyzing the top-heavy payout structures of the two events, some grinders believe that the two sites are putting marketing gimmicks above the desires of their regular players.
DFS pro “escot4” broke down the prize pools as follows:
- DraftKings $10M Millionaire Maker: 54.9% of the prize pool to the top .1%
- FanDuel’s $5M Sunday Million: 46.1% of the prize pool to the top .1%
- FanDuel’s $750K Sunday Kick off: 32% of the prize pool to the top .1%
In comparison, last week’s MLB Grand Slam on FanDuel utilized a flatter payout structure, with just 19.2% of the pool going to the top .1%, with 80.8% going to the rest of the field, according to escot4.
As a result of the top-heavy NFL payout, the pro intends to play much less entries than he would in tournaments with a flatter structure. “I may put half the amount of money into play that I originally planned, with almost all in cash games, because only a select few people will profit from [the top-heavy] GPPs,” he said.
Is it overkill?
In the thread, some felt that DraftKings could have gained an equal amount of interest with a $1 million top prize instead of the $2 million offered. “$1 million to first would bring in those same customers, and if they would have spread out that other $1 million, they could’ve brought in [even] more customers,” said “johnnyjohnny848.”
Others were in favor of the bulging payouts, and see such tournaments as a necessary evil to bring in new players to the game. “DK’s job is to grow their business,” said “theinnovative.” “Sure the majority of hardcore DFS players care about rake and grinding out research for hours daily, BUT that is not who is going to help grow the industry… All these advertisement dollars are being spent for the ‘noob’ and this type of large grand prize tourney is very attractive to new DFS users.”