Medicine and Health Sciences Commons^™

Player Pricing Mechanisms And The Daily Fantasy Sport Chance Versus Skill Debate, Jeremy M. Losak

Sport Management - All Scholarship

Differentiating and defining games of skill versus chance have major legal implications when classifying gambling, especially in relation to daily fantasy sports in the United States.This paper provides a theoretical discussion and introduces an empirical approach to analyzing game player pricing mechanisms. If game pricing mechanisms are fully efficient - player prices fully reflect the expected contributions from players-then that game is one of chance since there is no opportunity for skill to play a role in outcomes. This paper examines player prices from DraftKings' daily fantasy football product. Empirical results show that there are strategies deriving from the pricing …