10% rake is so 2010!
Effective immediately for daily fantasy basketball and daily fantasy hockey, and starting next week for weekly fantasy football, Fantasy Sports Live has lowered our rake to a range of 6.0 - 7.4% (92.4 - 96% payout) for all heads-up fantasy leagues. This is 26-40% lower rake than a typical 10% rake daily fantasy site. We have also adopted a policy of 9% maximum rake for all multi-player fantasy sports leagues. While daily fantasy sports is a game of skill, the skill factor is limited to a one time draft of nine fantasy players. Games of skill can have higher rake structures than games of chance, but the rake structure needs to take into consideration the amount of skill that can be applied to the game. While many of our customers have profited long-term from our daily fantasy leagues over the years, the percentage of players profiting just was not high enough at the 9% rake levels. By reducing our rake significantly, there will be a dramatic rise in the percentage of profitable daily fantasy sports players at Fantasy Sports Live. Also, those players that are nearly profitable will see their bankrolls extended substantially. We really felt that a move like this was required for the health of the daily fantasy sports industry, and the time was now to make it happen.
For multiplayer leagues, we reduced the lowest buy-in level to comply with the 9% maximum rake policy. We are one of the few daily sites that allow overlays by guaranteeing our multi-player prizes even if a league does not completely fill. As a result the rake on an individual multiplayer league is variable from 9% when a league fills, to highly negative when a league does not fill. We also offer daily rake free $1 leagues. Factoring this all in, the effective rake on our multiplayer leagues is pretty low and in the 7-8% range over the long-term.
Fantasy Sports Live is rewriting the rules of fantasy sports once again!