Yahoo launched a daily fantasy sports site on Wednesday, a pay-to-play offering intended to complement the season-long fantasy leagues it offers people for free.
It's a business that already has two major players: FanDuel and DraftKings. Both companies are well funded and quickly growing their user bases and revenues. Daily fantasy has turned into a lucrative business, which is undoubtedly why Yahoo — a company that used to dominate the world of fantasy sports — wants in on the action.
The products for all three companies work exactly the same. You can go to any site and pay a few bucks to draft a team and play a stranger head-to-head in a one-day fantasy contest. The winner takes the pot, minus a small cut for the facilitator, and the whole thing starts again the next day.
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Yahoo does offer one key differentiator though. If you already have a season-long fantasy team on the platform, you can put money down and go head-to-head against other people in your league using your existing team. Essentially, it's a way to make side bets throughout the season against your friends. It's a nice touch by Yahoo. It requires minimal effort from the user since his team is already in place, and offers a way for Yahoo to take advantage of its existing user base so it's not starting from scratch.