Fantasy Sports Revenue Generation

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Fantasy Sports Revenue Generation

Yahoo's Fantasy Golf earns revenue from the 10% commission on the contest entrance fees paid by the players. As for Fantrax, its NASCAR racing platform earns revenue from "paid advertisements, premium commissioner leagues fees, and pay-to-play games & contests fees." Meanwhile, the WTA Fantasy Tennis League platform earns revenue from various sponsorship and brand advertisements that accompany the fantasy tennis challenges. The rest of the details on the case studies involving the revenue sources of these fantasy sports platforms were presented in the section below.

Yahoo Fantasy Golf

  • Yahoo added golf into its "daily fantasy sports (DFS)" platform.
  • For the PGA Yahoo Cup contest, participants can join without paying a fee in a "multi-round, single-entry contest with 21 rounds."
  • Entrants have a chance to win $50,000 in cumulative prizes, with weekly bounties of $1,000.
  • This golf gaming option in the platform is almost the same as the 72-hole tournament series that Draft Kings and FanDuel are offering.
  • In the Yahoo fantasy golf realm, game participants can select six players with a budget limit of $200. The winner will be the participant who selected the six-player team that has the highest points at the end of the match.
  • The pricing plans are similar to the principles used in betting lines where players who have the most probability of winning, or those favored by the majority, are granted the highest price.
  • Golfers can rake in some points for the way they score in each round. They can also pick up some bonus points for where they end up at the end of the game.
  • As mentioned in the annual report from Altaba (formerly Yahoo Inc.), the company's mobile revenue was earned from various user activities on its apps such as the Yahoo Fantasy Sports app.
  • The company's mobile revenue mainly comes from "search and display advertising."
  • Its mobile search earnings came from "clicks on text-based links to advertisers' websites" These links mostly appear on search results rosters.
  • Meanwhile, the company's mobile display earnings came from the showing of " graphical, non-graphical, and video advertisements on mobile devices." The firm recognizes the earnings from these advertisement copies that were shown on its Yahoo apps as completed "impressions or clicks on these advertisements.
  • Impressions are recognized when a "sold advertisement" is shown on pages that were seen by users.
  • Mobile earnings are also derived from leads, listings and fees revenue, and online revenue that are attributed to visitor activity on mobile phones.
  • The company also earns from contest entrance fees that participants pay.
  • The company keeps around 10% of these fees.
  • There are various contest tiers with varying payment and prize rules. These competitions include the "Daily Fantasy, Best Ball, Pro Leagues, Cash Leagues, and Matchup Challenges."

Fantrax

  • Fantrax offers its fantasy racing game to car racing enthusiasts.
  • The company provides the only "fantasy NASCAR commissioner leagues" on its web and mobile app platforms.
  • Participants can draft their own league, ask their friends to join, and select their winning drivers' roster.
  • The company provides a customizable and feature-loaded "Standard Commissioner (League Manager)" solution for free. `
  • The product also has a premium version that costs $99.95. The premium version has more options on the menu.
  • Participants pay a customizable entrance fee to join the game. There are also various fees that will be collected throughout the activities associated with the game such as league fees, transaction fees, contest joining fees, and miscellaneous fees.
  • Fantrax earns revenue from paid advertisements, from premium commissioner leagues fees, and from "pay-to-play games & contests" fees.

WTA Fantasy Tennis

Research Strategy

To identify case studies that focus on how fantasy sports platforms that were customized to an individual sport generate revenue, we looked through the websites, press releases, and available reports of companies that own these platforms such as Altaba (formerly Yahoo), Fantrax, WTA, and other similar businesses. We also searched sports publications, gaming websites, sports-related websites, and other similar sources. We then found some pieces of information on how these companies earn money from their fantasy sports platforms. We also searched for any interview excerpts or analyses done on these companies to determine if we can find more details on how they earn money from their fantasy sports platforms. Based on this search approach, we found general insights on the business model of these platforms. Aside from the insights presented in the case studies above, we were not able to find any other additional statistics on their monetizing strategies.
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