How DraftKings and FanDuel Screw Customers - Part 3: The 2020 MLB Season

Note: All odds referenced are from 6:00 pm PT on Tuesday July 21, 2020.

Following up on our previous post regarding the restart of the NBA season, today we will look at the odds posted for the 2020 MLB season.  As you probably already know, the season has been cut from a 162 game marathon to a 60 game sprint.  But don’t think that less games means DraftKings and FanDuel wont try taking advantage of anyone and everyone.  Below is a breakdown of how these companies will screw you over when betting on the MLB.

When flipping a fair coin, the odds of heads are 50%, and the odds of tails are 50%.  The sum of which is 100%.  Similarly, rolling a fair six sided die gives a 16.67% of each number (1 through 6) being rolled.  Also, a sum of 100%.

You would think this would also be the case when it comes to the odds that sportsbooks offer.  From the odds posted, we can calculate the implied probabilities that certain events occur.  In theory, these implied probabilities should add up to 100% like the coin and die examples.  But is that the case?

Let's take a look at what DraftKings and FanDuel are offering customers.  First, let’s look at the bets offered on Win Totals for 2020.  Here are the odds currently posted at DraftKings...

Note: At the time of referencing these odds, DraftKings had not posted odds for the Los Angeles Angels or Toronto Blue Jays.

  And at FanDuel...

As you can see, each team’s over and under have a calculated probability that we ad together to get the sum of implied probabilities.  This sum should theoretically add up to 100%, but at DraftKings the average sum is 105.45% and at FanDuel it is 104.99%.  So, there is a 5.45% and 4.99% tax at DraftKings and FanDuel respectively.

But that’s not the only way DraftKings and FanDuel screw you over.  There is another sneaky way in which they do this.  In any game (let’s ignore the extremely rare case of a tie) there will be a winner and a loser.  Thus, the total number of wins by all teams in a season must add up to the number of games played in that season.  However, if we add up the win totals offered by each company this is not the case.  The “game tax” is the number of wins above the actual number of games to be played.  At DraftKings this is 8 games for the 28 teams available at the time these odds were referenced.  At FanDuel the “game tax” is 5 games for the 30 teams.  Just another trick that these companies use to deceive their customers.

 Now let’s look at the World Series odds:

  

As we can see, at DraftKings the implied probabilities add up to 126.83%.  At FanDuel they add up to 124.12%.  Every percentage above 100% is a tax they're charging you on your bet, hence how they're screwing you.  So at DraftKings, you're being charged an additional 26.83% and at FanDuel an additional 24.12%.

This is also the case with the League Winner odds.  

           

In the American Legaue, we have DraftKings adding up to 121.76% and at FanDuel adding up to 118.59%.  Again taxes of 21.76% and 18.59% respectively.  Here are the NL odds:

          

     

Over in the National League, at DraftKings the odds add up to 121.93%, while adding up to 116.63% at FanDuel.  Again taxes of 21.93% and 16.63% respectively.

Finally, I have laid out all the taxes charged on each Division Winner at both sites.  As you can see the taxes range from 11 to 16%.

 

  

We at betX will continue to keep bettors informed on how they're being taken advantage of by these companies.   The betX platform aims to eliminate the over-the-top taxes that these sportsbooks have grown accustomed to charging.  Stay updated and informed via our social media pages and at betxapp.com.

How DraftKings and FanDuel Screw Customers - Part 2: The 2020 NBA Bubble

Note: All odds referenced are from 12:45 pm PT on Monday July 6, 2020.

While it’s been nice to have the KBO, PGA, and UFC provide us with some sort of betting normalcy, at the end of the month we will finally have the return of major sports.  And with that, the return of DraftKings and FanDuel taking advantage of anyone who wants to bet on them.  As we continue this series, we will look at how much these two companies have been, and continue to, screw over their customers.

When flipping a fair coin, the odds of heads are 50%, and the odds of tails are 50%.  The sum of which is 100%.  Similarly, rolling a fair six sided die gives a 16.67% of each number (1 through 6) being rolled.  Also, a sum of 100%.

You would think this would also be the case when it comes to the odds that sportsbooks offer.  From the odds posted, we can calculate the implied probabilities that certain events occur.  In theory, these implied probabilities should add up to 100% like the coin and die examples.  But is that the case?

Let's take a look at what DraftKings and FanDuel are offering customers.  First, lets look at the NBA Champion odds.  Here are the odds currently posted at both sites...

  

As we can see, the 22 options at DraftKings add up to 120.79%.  The 22 options at FanDuel add up to 119.99%.  Every percentage above 100% is a tax they're charging you on your bet, hence how they're screwing you.  So at DraftKings, you're being charged an additional 20.79% and at FanDuel an additional 19.99%.

This is also the case with the conference title odds.  In the East, we have 13 options at DraftKings adding up to 113.34%, and those same 9 options at FanDuel adding up to 113.43%.  Again taxes of 13.34% and 13.43% respectively.

  

Over in the West, an additional 4 teams will be in the bubble for a total of 13 options.  At DraftKings these add up to 115.04%, while adding up to 116.64% at FanDuel.  Again taxes of 15.04% and 16.64% respectively.

Finally, we will look at the taxes charged on the compelling race for the 8^th playoff seed in the West.  Odds provided from both DraftKings and FanDuel are listed below.  Again you can see the taxes of 21.16% and 19.08%.

We at betX will continue to keep bettors informed on how they're being taken advantage of by these companies.   The betX platform aims to eliminate the over-the-top taxes that these sportsbooks have grown accustomed to charging.  Stay updated and informed via our social media pages and at betxapp.com.

How DraftKings and FanDuel Screw Customers - Part 1: The 2020 NFL Draft

Note: All odds referenced are from 11:45 am PT on Monday March 23, 2020.

While the sports world (like the rest of the world) is on hold, it seems like our first sense of normalcy will be the 2020 NFL Draft.  And while the rest of the world comes together to help out one another, DraftKings and FanDuel take the opposite approach.  In this series we will look at how much these two companies have been, and continue to, screw over their customers.

When flipping a fair coin, the odds of heads are 50%, and the odds of tails are 50%.  The sum of which is 100%.  Similarly, rolling a fair six sided die gives a 16.67% of each number (1 through 6) being rolled.  Also, a sum of 100%.

You would think this would also be the case when it comes to the odds that sportsbooks offer.  From the odds posted, we can calculate the implied probabilities that certain events occur.  In theory, these implied probabilities should add up to 100% like the coin and die examples.  But is that the case?

Let's take a look at what DraftKings and FanDuel are offering customers.  First, lets take a look at the top pick in the draft.  Here are the odds currently posted at both sites...

As we can see, the 17 options at DraftKings add up to 119.12%.  The 10 options at FanDuel add up to 125.01%.  Every percentage above 100% is a tax they're charging you on your bet, hence how they're screwing you.  So at DraftKings, you're being charged an additional 19.12% and at FanDuel an additional 25.01%.

This is also the case with the second pick in the draft.  We have 17 options at DraftKings adding up to 122.53%, and 6 options at FanDuel adding up to 121.30%.  Again taxes of 22.53% and 21.30% respectively.

 

Although it isn't as egregious, we can also see taxes charged on three of the most compelling picks in the draft.  Below are the odds on Chase Young, Tua Tagovailoa, and Justin Herbert offered at both books.  Again you can see the taxes that are charged on the over and under of pick they will be taken in the draft.

We at betX will continue to keep bettors informed on how they're being taken advantage of by these companies.   The betX platform aims to eliminate the over-the-top taxes that these sportsbooks have grown accustomed to charging.  Stay updated and informed via our social media pages and at betxapp.com.