[z2]

With user acquisition costs of "$190 per user for DraftKings and $110 for FanDuel" [0], what, besides long term casino-style gambling addiction, can hope to recover the costs? And unlike casino gamblers, don't 'bro-classic' people tend to grow out of these things after a while?

[0] http://www.usnews.com/news/articles/2015/10/30/draftkings-fa...

[someone7x]

Honestly, I'm thinking long term freemium-style addiction can hope to recover those costs.

I was surprised that they didn't monetize some of the analytics (or whatever utility player scripts were providing) that the big winners were using after banning them from using their own scripts.

But then again, a lot of the decisions described in the article were surprising.

[ajamesm]

Change $190 to $500k and I think you just described venture capitalism!

[sverige]

But without the instant feedback and athleticism, which is why millennials aren't venture capitalists. That, and most don't have $500k.

[gk1]

"User acquisition cost" refers to the average amount a company spends on marketing to acquire one new user. It does not mean the price a user pays to sign up.

[hkmurakami]

Generally speaking, insurance industries can pay these CAC costs and turn a profit.