Fantasy sports for all

Feb 22, 2013
Startups & Venture Capital 

DraftKings recruiting the more casual fan

Taryn Plumb |, Special to the Journal

 

W. Marc Bernsau

Much as they’re intended for enjoyment, fantasy sports can often require a big commitment — and after a while, can even become a chore. All of which can prove to dissuade casual sports fans, or those who just can’t dedicate the time, according to DraftKings co-founder Jason Robins.
The goal of the Boston-based startup is to provide more manageable and bite-sized contests in the fantasy realm — and, in the process, ultimately reach beyond the “diehard” fans to anyone who’s ever had just an inkling of curiosity in fantasy sports.
Pointing to the $1 billion market — a global estimate for fantasy sports revenue that has experienced double-digit annual growth since 2007, according to IBISWorld — Robins said there’s a “huge population” of fans looking to enhance their sports experience.
“We’re really trying to broaden the audience,” he said.
Founded in 2011 by Robins, Matthew Kalish and Paul Liberman, the company’s mobile-friendly website offers single-day fantasy sports contests in professional football, basketball, hockey and baseball, as well as college football and hoops. DraftKings employs 13 people and is backed by a $1.4 million seed round of investing that was led last year by Atlas Venture.
Entry fees range from free to $500 or more, with prize pools in the thousands, depending on the number of players and the importance of the game. For instance, an end-of-season football contest paid out $250,000 to several winners, according to Robins, while a weekly Wednesday night contest throughout basketball season entices with a $50,000 prize pool.
Meanwhile, the company’s free mobile and Facebook app, “Fantasy Sports for Coins,” allows users to play in more of a video-game fashion, leveling up and using virtual money instead of real cash.
“It’s a much more a-la-carte, pay-as-you-go style,” Robins said. “Every day is a brand new season.”
DraftKings’ website, which launched last April, now has 100,000 users, while its app has attracted 250,000 users since going live last August, according to Robins. The two most popular sports have been football and basketball.
The biggest appeal of DraftKings, according to some users, is the flexibility: Users aren’t locked in for a whole season, and they can switch players in and out on a daily basis.
Tyler Tobin is what you’d call an avid player. The North Carolina educator uses DraftKings every day for basketball, football and baseball matchups, and recently won $20,000 through fantasy sports.
A writer for the industry site dailyfantasyradio.com, he also has a good pulse on the market, and said he sees DraftKings as “doing big things and being in a good position in the next couple of years.”
Ideally, he’d like to see the site add bigger contests and prizes, as well as more sports, such as golf (his personal favorite), NASCAR and soccer.
He predicted that fantasy sports will “keep exploding in the future,” particularly among men ages 20 to 40.
“It’s regular guys, with regular jobs, who are married, have kids,” Tobin said. “They play for that thrill of getting a little nightly competition.”

Original story link here.