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.