In daily fantasy circles, a subject that keeps coming up is the topic of rake. It keeps coming up because it keeps going up.
This week, there were rumblings on social media among DFS customers about creeping rake (the fee that the DFS websites subtract from a contest prize pool for conducting the game), which in some contests on FanDuel and DraftKings, is approaching 16 percent. The typical rake recently has been about 15 percent -- and any movement upward, no matter how small or how few contests it affects, is going to be noticed. Obviously, the lower the rake, the better for the customer.
But since rake is the chief source of revenue, it's understandable DFS websites charge some commission. The issue, for DFS participants, is at what point does the rake become so high that being profitable, as a player, becomes too difficult.
