DraftKings Buys StarStreet

| August 25, 2014 | 2 Comments

DraftKings Buys StarStreet

Just when daily fantasy sites had to change their pages and reviews to take off DraftStreet because of their purchase and closing by DraftKings, it has happened again.

In the continued changing dynamic of daily fantasy sports, there is continued consolidation and buy-outs of some of the medium and top daily fantasy companies. DraftKings seems to be flexing its muscles in an attempt to grow even faster by buying StarStreet. StarStreet was probably the 4th or 5th largest daily fantasy site and now they are no more.

This appears to be setting up a show down for the top 2 daily fantasy sites, FanDuel and DraftKings, in a play for market share.

FanDuel and DraftKings are by far the 2 largest daily fantasy sites where users can play a variety of daily fantasy sports in one day or week long leagues.  I’m sure you’ve heard or seen the commercials on sports radio and the likes of ESPN. This is a very fast growing market and is a very new fantasy sports industry.

The appeal comes from the fun and excitement that fantasy players have in creating a fantasy team in the hopes of winning their games. Instead of having to wait an entire season to draft another team, daily fantasy players can select and play a new team daily or weekly.

With DraftKings absorbing DraftStreet and StarStreet within a month, they hope to bring in the player base from these sites in order to rapidly grow their own already large user base. There is debate as to whether this will really work as well as they hope because many players of daily fantasy sports have likely tried out the top daily fantasy sites and play on the ones they prefer the best. Many daily fantasy players play on multiple sites because there are variations of the games offered which some prefer.

For instance, a player might have liked the salary cap better on DraftKings more than another site so they play that particular game on DK. Or they liked the Pick-5 game on StarStreet so they played that particular game on SS.  But they probably already had an account on both sites so buying the player list from StarStreet may not have netted DraftKings that many more players overall. All this seems to do is take out the competition in these sites which would serve to help not only DraftKings but also larger sites such as FanDuel. It also probably helps some of the smaller upcoming sites such as StatClash and FantasyAces also.

Most players already know about DraftKings and what they have to offer, so taking away larger sites by buying them might serve to have players look to some of the other less well known sites for games similar to the ones they liked on DraftStreet or StarStreet.

Of course, hopefully, DK knows what they are doing and hopefully this more works out for them because we would hate to loose a great site such as theirs due to financial mismanagement and possibly risky moves.

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Category: Tips & Info

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