Growth in Daily Fantasy Sports

RotoGrinders .com GROWTH IN DAILY FANTASY SPORTS IN DOLLARS AND CENTS DFS In 2006, the Unlawful Internet Gambling While the bill crippled the online poker industry in the United States, it essentially paved the way for daily fantasy sports (DFS). The first DFS gaming sites were founded in Enforcement Act 2007. However, (UIGEA) was signed widespread adoption didn't begin to mount until 2010. into law. SINCE THEN, DFS HAS BECOME IT'S MORE THAN A WAY FOR SPORTS FANS TO PLAY ALONG WITH THE GAMES THEY LOVE. Learn about the meteoric growth of DFS and BIG how it might one day soon become a billion-dollar industry. BUSINESS PRIZE POOLS One of the most obvious examples of the DFS boom can be seen in the size of NEWPORT BEACH championship events. LAS VEGAS MIAMI ВАНАМAS While some are hosted online, many of these championship contests were "live finals," where qualifying finalists were ushered to exotic locations such as the Bahamas, Newport Beach, Miami and Las Vegas to compete for thousands (and even millions) of dollars in one-day DFS cash prizes. $8M FANDUEL CHAMPIONSHIP PRIZE POOLS $7M $6M $5M MLB NBA NFL $4M $3M $2M $1M 2010 2011 2012 2013 2014 DRAFTKINGS CHAMPIONSHIP PRIZE POOLS MLB NBA NFL $3.5M $3M $2.5M $2M $1.5M $1M $0.5M 2012 2013 2014 FANDUEL: Largest weekly contest prize pools MLB NBA NFL $3.5M $2.5M $2M $1.5M $1M $0.5M 2010 2011 2012 2013 2014 DRAFTKINGS: Largest weekly contest prize pools MLB NBA NFL $3M $2.5M $2M $1.5M $1M $0.5M 2012 2013 2014 FUNDING AND FINANCES Where'd DFS's epic growth come from? It was spurred by both public demand as well as venture capital funding that helped these sites quickly grow. • FanDuel VC Funding Rounds 80 $70 MILLION 70 60 50 40 30 20 $11 MILLION $4 MILLION 10 $1.2 MILLION SERIES A SERIES B SERIES C SERIES D DraftKings VC Funding Rounds $250 MILLION 250 200 150 100 $41 MILLION 50 $24 MILLION $7 MILLION $14 MILLION $3 MILLION SEED SERIES A SEED SERIES B SERIES C UNDISCLOSED Major investors in DFS companies include: DRAFTKINGS FANDUEL Comcast. NBC NBA USERS, REVENUE AND GROWTH FanDuel's Surging Finances PERIOD ENTRY FEES PRIZES REVENUE PAID ACTIVES Q1 2011 $1,356,459 $1,221,099 $135,360 3,158 Q2 2011 Q3 2011 $2,327,386 $2,096,015 $231,371 4,370 $2,551,689 $2,297,142 $254,547 10,846 Q4 2011 $5,275,634 $4,744,941 $530,693 17,251 Q1 2012 $6,298,645 $5,740,136 $558,509 11,115 Q2 2012 $9,792,395 $8,919,258 $873,137 16,744 Q3 2012 $11,503,206 $10,457,749 $1,045,457 49,768 Q4 2012 $27,064,590 $24,583,723 $2,480,867 69,061 Q1 2013 $19,879,141 $18,067,358 $1,811,783 39,289 Q2 2013 $26,690,876 $24,279,250 $2,411,626 42,812 Q3 2013 $31,344,103 $28,720,715 $2,623,388 130,451 Q4 2013 $81,471,960 $74,060,823 $7,411,137 192,942 Q1 2014 $62,712,251 $57,335,607 $5,376,644 110,032 Q2 2014 $78,612,944 $72,436,034 $6,176,910 93,961 Q3 2014 $109,695,702 $100,801,278 $8,894,423 519,310 Q4 2014 $370,703,531 $333,889,866 $36,813,665 1,012,265 Eilers Industry Estimates 96% -$1 Billion Total DFS contest entry fees in 2014: Total DFS net revenues in 2014: -$85-90 million While there are now 20+ DFS gaming sites in North America, in 2014, FanDuel (revenue = entry fees - prizes). and DraftKings owned 96% of the DFS market share. Eilers predicts that: By 2016, entry fees on DFS By 2017, DFS contests will not only be televised, but have contests will • NEVADA exceed the total amount wagered on sports in all of Nevada. ratings that exceed ESPN's "World Series of Poker" coverage. 2015 2016 2017 2018 Resources: • https://www.fanduel.com • https://draftkings.com • http://eilersresearch.com/ RotoGrinders .COM $40,000 O $6,000 $450 $20,000 e $112,5 $250,000 O $15,000 O $150,000 000'0L$ $10,000 000's$ $500,000 $5,000 O $65,000 $3,100,000 $350,000 000'oss $10,000 000'oz$ $150,000 000'9$ C $12,500 $200,000 $300,000 000'00s$ 000'00L$ 000'ozs 000'000'z$ 000'000'E$ $3,100,000 $125,000 000'00t$ 000'000'e$ 000'00s$ 000'000'L$ $100,000 000'00+$ $150,000 000'00e'E$ 000'000ʻ2$ 000'007'L$ $2,000,000