Whether a person is interested in daily fantasy sports or placing actual bets, DraftKings has built itself up as one of the top companies in the world. They have helped revolutionize sports entertainment by allowing people to make money with their predictions on sports.
As enticing as the money is, there’s always a chance of losing money as well. DraftKings has to make money itself, but how do they do it? Is there any type of monthly fee involved?
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Does DraftKings Charge a Monthly Fee?
DraftKings, along with their top competitors like FanDuel, do not charge any monthly fees. It is completely free to sign up, and they even offer free games to participate in without investing any money.
The Accessibility of DraftKings
A major reason why DraftKings does not charge any type of monthly fee comes down to wanting to offer full accessibility. The last thing a company wants to do when building up a fan base and market share is to put limits on people. The easier it is to sign up, the easier it is for people to try for the first time.
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DraftKings makes their money in daily fantasy sports from their rake in every contest. Take a look at any daily fantasy sports game, and the entry fees add up to more than the payout. That difference goes to DraftKings and helps pay the bills.
With their sportsbook side, they do the same thing to make money as other companies. The included vig always ensures that the sportsbook makes money in the end.
What Does the Rake and Vig Pay For With DraftKings?
It might not seem like overhead costs are high at DraftKings, but it does start to add up. Just on the technology side alone, these companies need to pay for servers, software, and other tech to run their platforms effectively. The bigger the company, the more its overhead costs become. They also have to pay employees, please investors, and grow overall (just like any other business).
Advertising is also very expensive, especially in brand-new states legalizing daily fantasy sports or sports gambling for the first time. It becomes a race to see which companies can secure market share. Most recently, Ohio residents received an advertising blitz when sports betting became legal in January 2023.
Does DraftKings Charge Any Inactivity Fees?
Inactive accounts can take up space, causing some companies to charge fees if they are untouched for a while. DraftKings has never charged any inactivity fees for users.
As long as a person has an account, they’ll be able to access the money and take winnings out. That’s great news for casual gamblers who don’t want to worry about keeping their account active after an extended layoff.
Will DraftKings Ever Charge a Monthly Fee?
While it’s impossible to truly say never, it would require a drastic shift in the industry for DraftKings to consider a monthly fee. They make their money in other ways, and a decision to charge a monthly fee would create a huge backlash from existing customers. Not only that, but it would greatly reduce the number of curious signups willing to give them a chance.
The way DraftKings makes money now works well enough for them that a monthly fee would have a negative impact. As long as players remain actively wagering on contests and sports bets, it removes the need for any additional fees.