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I was just reading a thread on Rotogrinders (it's a daily fantasy sports site). A guy was complaining about "whales" dominating a recent contest. There was a $55 entry contest that had 6191 entries (you can enter multiple times) and paid out money to the top 250 lineups. Well, four players won 55% of the money. One guy had 61 of the 250 entries that cashed, another 34 entries. How could this be, the poster asked. What's the point of our even playing if these guys dominate?
If you look at the results of the DFS DraftKings contests, 1% of the players win 50% of the money. Sound familiar? Also, keep in mind that there are "sharks" that lost money on that contest that might win in the next contest, just like in horse racing. The average DFS "whale" also has a huge bankroll but churns through it, winning about 3%. Strangely, we've heard that exact number used in horse racing to estimate the whales' profits after rebates.
I don't have an answer here, just saying that if you're gambling against others who are much better capitalized and more talented, this is an issue. An option that DFS players have is entering contests that are limited to a single entry per person, or just a few entries. Maybe that's their version of exchange wagering, at least in spirit---something similar that somewhat avoids direct combat with the whales.
Unfortunately, sometimes the advice was just "you need to get better". As a simple fact, it's clearly true---nearly all of us have to get better or get out if we want to win money.
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