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KarmaPolice

DraftKings Week 3

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4 hours ago, Ramblin Wreck said:

Seeing some stuff on twitter that DraftKings is raising their rake.  What was it?  What is it now?

Both sites take 10% but DKs rake goes down as the buy-in price goes up. Only 5.6% for the highest buy-in. Hopefully they are just going to a straight 10%.

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10 hours ago, Raging weasel said:

Both sites take 10% but DKs rake goes down as the buy-in price goes up. Only 5.6% for the highest buy-in. Hopefully they are just going to a straight 10%.

 

No their rake is up to 16% now, and even though they are supposed to be separate companies, fanduel matches all the rake increases, it's ridiculous. 

 

The rake has not been at 10% for years, but is really where it should be if they care about building a sustainable industry, which obviously neither DK or FD do.

 

The calculation also slightly depends on how you calculate it.  For example in this week's millionaire maker, the prize pool is $4.25 million and if it fills completely they will collect $5 million. 

I view that as a tournament where you contribute $17 to the buy in and $3 as rake.  To me, 3/17 is 17.6% rake, others view it as rake out of the total buy in, in which case 3/20 would be a 15% rake, either way it is exorbitant.  Their lower priced contests have gotten even worse, and they keep increasing rake trying to pay off investors and make up for past mistakes.   They are making more than enough with current margins to be profitable if properly run. 

 

Even in poker the rake rarely exceeds 10%, DFS in its current form is not sustainable.  A comparable tournament in online poker would have a $20 + $2 buy in, with $20 going to the prize pool and $2 towards the rake. 

Edited by GreenNGold

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