Should DFS sites reconsider their approach to the deposit bonus?
Somewhere in America at this moment, someone – probably a man between 18 and 49 years of age – is thinking about his fantasy sports team. Which NFL quarterback is going to throw more touchdowns? And which NBA point guard will sink the most baskets? The United States and Canada boast in excess of 56 million fantasy sports players and between them, they are betting millions on these issues.
There is certainly a lot of money involved in the industry. Players spend an average of $465 annually in these games. Unfortunately, because the deposit bonus clears at around 4%, most fantasy sports players will never last for long enough to be able to bank their deposit bonus before they have lost the money that they deposited. In fact, most do not even come close.
One answer for the daily fantasy sports (DFS) websites could be to immediately end this farce and stop giving players a deposit bonus. Instead, they could simply give each new player an immediate free $5 bet for every $100 deposited up to $ 500, with a maximum number of free bets per player.
To their credit, DFS sites offer some genuinely good spontaneous promotions, particularly when there is an upcoming competition that is going to have a large overlay. And on a positive note, you currently have a lot of time to clear your deposit bonus: DraftKings gives you up to four months to clear your deposit bonus. FanDuel’s first deposit bonus has no expiration date.
But if the DFS sites need to reconsider their approach to the deposit bonus, they need to make sure that they retain their popularity.