I’m a true believer in the famous saying “if it sounds too good to be true, then it probably is.”
With that said, all these sites trying to sell you on their product is just that, a sales pitch.
“But wait, they are giving you free money to play. How can you go wrong?” is what I often hear from people who are new to the DFS community.
Just like Vegas isn’t built on winners, DFS sites aren’t giving you “free” money just for depositing.
If you are a big sports fan, there is no way you haven’t heard or seen a FanDuel commercial. They promote their product and explain how it works and how exciting it is.
They tell you all about how some guy turned $50 into a ridiculous amount of money which most people don’t make in a year.
Now that they have you interested in their product, they hit you with the ultimate hammer, THEY’LL MATCH YOUR DEPOSTIT UP TO $200!
Just like Las Vegas isn’t built off winners, sites aren’t giving you free money either. They really do have a great marketing plan that makes you believe that if you put in $200 dollars then your account will have $400 to spend entering contests.
Why Their Pitch Works
The problem I have with our society is that people don’t think things out, especially when it comes to money. People always think they are smarter than they really are and believe that they (and only they) have found a loop hole to make money.
These loop holes always have one common denominator, and it involves not having the only thing that is guaranteed to make you money, work!
Don’t we all know that guy who is determined to get rich without really doing anything?
That’s the American Dream and if you don’t believe me, then why are so many lotto tickets sold every day?
The Reality of the Deposit Bonus
Do you really think Fanduel is just giving you $200 simply for signing up?
I know it’s sad, but I’ve personally heard multiple people say “I’ll just sign up and deposit $200 dollars then withdraw $400. Then I’ll do it again under a relatives name and give them a cut of the money.”
FanDuel isn’t that stupid and if you truly believe you are the only person who has come up with this money making “theory”, you have another thing coming.
So How Does The Deposit Bonus Work?
They obviously have to give it to you in a way that doesn’t cost the company millions of dollars.
What they do is they release the bonus every time you play at a rate of 4%.
Put yourself in their shoes and think about what sounds better as a sales pitch.
A. We will match your deposit up to $200!
B. If you play $5000 worth of contests, we will give you $200 if you deposit $200 from the start.
You need to understand the operations of a DFS site to understand how this deal really works. Every site takes what is known as in the industry, a rake.
A rake is the portion of the entry fee that the site takes so that they can make money. The standard rake is about 10%, meaning if you play $10 they take $1. That’s why you are only awarded $18 if you win a $10 head to head contest.
There are two ways to look at this when everything is said and done. You can either look at it as “they are giving me $200 (or what every my initial deposit was) or, they are only charging me 6% rake (instead of 10%) till I reach my initial deposit limit.
Why Do Most DFS Sites Offer the Same Type of Bonus?
Obviously DFS is a monkey see monkey do business, as are all other businesses. If a strategy is working well with one site, then other sites are going to copy it in an attempt to create the same success.
Now with that being said, FanDuel is the leader in DFS and they do a really good job honoring their bonus. But the same can’t be said with plenty of other new sites.
It’s common for sites to offer you sign up bonuses but there are often things that get overlooked. In order for DFS to be legal, you can’t base your prize pool off of the entries that signed up.
This way DFS sites aren’t like casinos where the house always wins.
They have to be held accountable and the way this law works is DFS sites have two options; they can either take contest down if they don’t fill and refund players their money. Or they have what is known as overlay if the prize is guaranteed.
This is why it’s important to know if the contest you are playing in is Guaranteed or not. Overlay is great for us, the players, because it gives us better odds to make money and the site has to take the hit financially if it does not fill.
With Some Sites The Bonus Release is Even More Unclear
Now that you understand this, you can understand how some sites rip you off. Like I said earlier, Fanduel is great at paying you (or charging you less rake, however you want to look at it) your bonus. They will pay you regardless if the contest is guaranteed but doesn’t fill.
But other sites (Victiv comes to mind) will not release your bonus if guaranteed contests don’t fill. I’ve been playing on Victiv since it started and made an initial deposit of $500 and they matched me.
Since they are a new site and I mainly play their guaranteed contests, they have only released about $20 of my bonus. This is because they aren’t making a profit so they feel they don’t need to honor their deposit bonus. I do dabble in some ten and six man leagues that fill, so they will release my bonus money there because they made money on those games.
But I’ve played in roughly $6000 worth of contests as a whole on that site and have only had $20 dollars of my $500 released.
This may seem like I’m bitter against Victiv and I’m not. Victiv isn’t alone because there are a lot of other sites that do this too and I can’t say that I blame them. They are taking a hit financially as most sites will in their first year or so in business.
But they manipulate their costumers into thinking they are getting something that they aren’t which I don’t think is right.
When all is said and done, be smarter than the general public!
Stop The Gimmicks FanDuel – You Have A Great Product!
If it sounds too good to be true, then it probably is. DFS is plenty fun to play without the promise of a confusing deposit bonus release system.
I feel that because the bonus release system is not clear upfront, some new players think they are getting scammed. And this is not good for any site.