There have been no shortage of daily fantasy sports sites in recent years trying to take advantage of a market brought to the forefront by DraftKings and FanDuel.
One of those — SuperDraft — is hoping to make a splash around the Super Bowl with a huge million-dollar contest that you don’t often see outside of DFS’ “big two.”
SuperDraft’s Super Million Big Game Tournament
SuperDraft will be holding the “Super Million Big Game Tournament” based on the Super Bowl. The prize pool will be $1 million guaranteed. It carries a lofty entry fee of $4,000, with $300,000 going to the winner.
There are also rake-free satellites running for $400 that can get you entry into the million-dollar contest.
Beyond the big prize pool, SuperDraft is also hoping the low rake on the contest — the amount the site keeps out of the entry fees — will attract players. SuperDraft will keep just 6% of all fees for this contest. World Series of Poker winner Brandon Adams — who has been long involved in the daily fantasy industry, is an ambassador for the site and the contest.
If you’re in a state without legal betting on the Super Bowl, or if you just like fantasy sports — it’s a pretty attractive contest.
Competing with DraftKings and FanDuel?
“This is our first engagement in trying to get attention,” CEO of SuperDraft Steve Wang told PlayUSA. “But this is what the players want, lower rake and big prizes, and we’re going to give it to them.
“It’s still going to take time, but we think we can get there.”
Of course, the short history of DFS is littered with companies that tried and failed to cut into the DraftKings and FanDuel duopoly. What’s different about this?
SuperDraft believes the combination of lower rake and a different type of game from the traditional salary cap model. Perhaps the biggest advantage in the near future could be cash, as the company is in the middle of trying to raise funds for further growth.
“The belief is that SuperDraft’s strategy, which is a price-centric strategy, will get very good reception from daily fantasy players, because DraftKings’ and FanDuel’s rake has gone up over time,” Adams told PlayUSA.
Again, the proof will be in the pudding. Other sites have tried similar strategies, only to fail to attract or hold onto enough of the players to make a real dent in the market.
Why DFS when sports betting is so big?
DFS grew to prominence in the early 2010s because of the relative lack of legal sports betting options across the United States. DFS is generally not treated as gambling across the country, and companies operate in a variety of states.
Now, even with sports betting proliferating in more states, DFS is seeing growth, and more companies in the industry.
Why? It’s seen as a placeholder for sports betting, and a way to engage fans who want to have a monetary stake in the games. For instance, US online sports betting is not legal in the four biggest states: California, Florida, Texas and New York. DFS operators generally serve all these states while sportsbooks cannot.
That gives sites like SuperDraft a way to compile a database of future sports bettors, and to monetize current large markets without sports gambling. Of course, DraftKings and FanDuel have been building those databases and serving those markets for nearly a decade.
But this is SuperDraft’s first foray into attempting to reach the next echelon. Will it get there?