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.
