DraftKings doubles down with DraftStreet acquisition

Written By PlayPicks Staff on July 14, 2014 - Last Updated on June 27, 2018

DraftStreet Acquisition

In a deal known by industry insiders for four days DraftKings officially announced the acquisition of Draftstreet forming the second and third largest sites together in the daily fantasy sports industry. It pits FanDuel against DraftKings in what is shaping up to be a two headed race for the foreseeable future. Financial terms have not been disclosed but after seeing FanDuels Financial information and the devaluation of DraftDay when it was acquired by MGT it will be very interesting to see what value was given to DraftStreet in this acquisition. The Daily Fantasy Sports industry is still at an incredibly young age. Are industry insiders betting on a potential poker like boom? Even when sites are emerging that go beyond the salary cap structure of Daily Fantasy Sports providing various pick em style games like FanNation or even  a trading floor simulation on TraderSports.  The daily fantasy sports offerings will be decreasing with this deal but it appears that other alternative styled action can be found and potentially profited on. We will discuss this potential Sport Market Portfolio at a later time. But for daily grinders especially those that found success on a site like DraftStreet for its tighter player pricing and added roster flexibility it is encouraging to see that DraftKings plans to add elements of DraftStreet to its overall player experience.

DraftStreet Acquisition
DraftStreet Acquisition

– the one and only reason why DraftKings and DraftStreet are teaming up is that we believe we are a better company combined than separate. Yes, userbase and liquidity will grow, but more importantly we are bringing together two great teams that will work hard to infuse everything you love about DraftStreet and DraftKings into one incredible experience.

 

I have just completed the transfer of funds from my DraftStreet to my DraftKings account and not only am I extremely impressed with the smooth transition and how easy it was, but also very impressed that DraftKings pushed my pending DraftStreet bonus over as well along with an allocation of my player points. If we are grading this solely on the ease of transfer it would definitely be considered a successful acquisition so far. Even though it is hard to predict at the present time the deal does seem to have a negative outlook for the average daily fantasy sport player with no financial ties or interest to any particular site. It takes away a variety of games and volume along with the potential risks of increases in rake for certain demographics of players since the power is more condensed into two main sites as opposed to a variety of options that we had available even less then a year ago. The most important element for both DraftKings and FanDuel needs to be on growing the player base by getting new players interested in playing daily fantasy sports. Without a fresh investment of new players regurgitating ones playing on different sites only increases the amount of winning players (for a time being) on the new site and resulting in more difficult games against tougher competition. FanDuel was always the site to go to for easy headsup matches. Hopefully the increased player pool will provide opportunity for better headsup games on DraftKings but neither DraftStreet or DraftKings were known to have good headsup action outside of tangling with the normal regulars.

Industry Shift

The direction of Daily Fantasy sports appears to be changing almost everyday. When first starting out it was strictly a salary cap structure game but we continue to see new and exciting offsprings of the general concept of daily fantasy sports. We have DFSElite which will be rolling out a desktop version of their beloved app in a short time

along with the aforementioned FanNation and TraderSports and many other interesting offerings. It appears that daily fantasy sports could be moving to an options based game with numerous different angles that a successful player could take advantage of. Already the best players in the industry use a diversified portfolio of daily fantasy action with the best incorporating Vegas prop bets and live game features to maximize their expected return every Sunday. The various options that one can take advantage of to make money appears to be growing by the day. The industry standard for what defines daily fantasy sports along with how to be successful at it appears to be taking a turn with this acquisition. Many questions lay on the horizon but all across the industry people are predicting an incredible advancement in the daily fantasy sports industry this fall and that should have all players incredibly excited for the potential profits that can be made.

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