Submission Type

Lightning Talk

Submission Title

Natural Groups of daily fantasy sports players

Session Title

Session 2-3-F: Lightning Talks

Location

Caesars Palace, Las Vegas, Nevada

Start Date

29-5-2019 1:45 PM

End Date

29-5-2019 3:10 PM

Disciplines

Behavioral Economics | Behavior and Behavior Mechanisms | Sports Studies

Abstract

Abstract: Researchers use many different measures to quantify gambling involvement. Those studying different gambling environments can use these measures to partition the players into groups or subgroups. On DraftKings, the contests’ entry fees range from $0.10 to over $10,000. DraftKings’ customers can choose to enter as many or as few contests as they can afford. In this study, we examine a sample of DraftKings customers who made their first deposits to the site in August or September of 2014, calculating summary statistics based on activity during the 2014 NFL season. Using k-means cluster analysis with k = 4, we partitioned the sample separately by number of entries over the season and by average entry fees. Using these two partitions, we separated the sample into subgroups, and then compared the sizes, average profits/losses, and returns on investment of the subgroups. Over 80% of the sample was in the subgroup with the smallest average entry fees (roughly $14 or below) and smallest numbers of entries (roughly 200 or under). In this presentation, we will highlight differences between the subgroups, and then show ways we used the partitioning to draw conclusions about the sample and the population it was drawn from.

Keywords

daily fantasy sports, gambling, involvement

Author Bio

Dr. Matthew Tom is a Research Data Analyst at the Division on Addiction, Cambridge Health Alliance, and one of the Series Editor at The BASIS. He earned his Ph.D. in statistics from Cornell University in 2003, and then taught mathematics and statistics at Emmanuel College before joining the Division in 2012. His special research interests include the diversity of gambling habits within different player pools, responsible gambling tools and tips, and the distinction between games of pure chance and games of skill and chance.

Funding Sources

This work was supported through a contract with DraftKings. DraftKings did not have any involvement in the research itself.

Competing Interests

The Division on Addiction and affiliated faculty have received funding in the past three years from DraftKings, the Foundation for Advancing Alcohol Responsibility (FAAR), The Healing Lodge of the Seven Nations via NIH and Indian Health Services (IHS), NIH, the Integrated Centre on Addiction Prevention and Treatment of the Tung Wah Group of Hospitals, which receives funding from The Hong Kong Jockey Club Charities Trust, the Massachusetts Gaming Commission, the Massachusetts Department of Public Health, National Center for Responsible Gaming, the New Mexico Responsible Gaming Association, the British Columbia Lottery Corporation, MGM (through a subcontract with UNLV), and GVC Services, Ltd.

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May 29th, 1:45 PM May 29th, 3:10 PM

Natural Groups of daily fantasy sports players

Caesars Palace, Las Vegas, Nevada

Abstract: Researchers use many different measures to quantify gambling involvement. Those studying different gambling environments can use these measures to partition the players into groups or subgroups. On DraftKings, the contests’ entry fees range from $0.10 to over $10,000. DraftKings’ customers can choose to enter as many or as few contests as they can afford. In this study, we examine a sample of DraftKings customers who made their first deposits to the site in August or September of 2014, calculating summary statistics based on activity during the 2014 NFL season. Using k-means cluster analysis with k = 4, we partitioned the sample separately by number of entries over the season and by average entry fees. Using these two partitions, we separated the sample into subgroups, and then compared the sizes, average profits/losses, and returns on investment of the subgroups. Over 80% of the sample was in the subgroup with the smallest average entry fees (roughly $14 or below) and smallest numbers of entries (roughly 200 or under). In this presentation, we will highlight differences between the subgroups, and then show ways we used the partitioning to draw conclusions about the sample and the population it was drawn from.