Research Firm: Yahoo Daily Fantasy Sports Revenue For 2015 Likely About $5mm

Written By

Updated on

Yahoo DraftKings Revenue

Yahoo’s net revenue from daily fantasy sports this year is likely to be about $5 million, according to a research report just released on the DFS industry.

The predicted numbers for Yahoo

The report from Eilers Research makes several predictions after Yahoo’s entrance into the DFS market on Wednesday. The most interesting part of the report was the numbers it projected for the rest of the calendar year:

By contrast, both FanDuel and DraftKings expect to award $1 billion in prizes this year while potentially reaching nine figures in revenue. Granted, that includes six more months of the year, but all three will be competing during the biggest portion of the daily fantasy calendar, NFL season.

Why so low?

There have been varying opinions on Yahoo’s year-one potential, from the idea that it could compete for the No. 1 spot in the DFS space to it will be an absolute failure.

The report from Eilers’ Adam Krejcik straddles those two distant vantage points. Krejcik questioned Yahoo’s commitment to spend money to compete with the industry’s two giants, FanDuel and DraftKings, right off the bat.

Also unknown is how successful Yahoo will be at converting its large, existing seasonlong fantasy user base to its DFS contests.

How Yahoo could beat the projections

What factors could play into Yahoo exceeding these projections? Here is a sampling:

Photo by Yahoo Pressebilder used under license CC BY-ND 2.0.