Brian Schwartz, co-founder and CEO of DraftStreet revealed that the daily fantasy sports site has over 350,000 registered users. This was disclosed in a sit down with Pimm Fox during "Taking Stock" on Bloomberg Television.
A life long fantasy player, Brain Schwartz started DraftStreet in 2009. The site provides games for football, baseball, basketball, hockey, and college sports. They plan to expand to soccer for the World Cup.
The site offers both free and pay leagues, but the bulk of the revenue will come from league fees that can range from $2 to $400. Of the 350,000 registered users on DraftStreet only about 10-15% are in pay leagues. Schwartz also revealed that he expects over the lifetime of fantasy players to wager around $3000-$4000 and the expectation is to be able to grow the site to 10-15 million players.
Schwartz was asked about the issue of online gaming and stated that fantasy sports is exempt and it is classified as a game of skill.
Related: Are you breaking the law by playing fantasy football?
FtSb says: Doing the math, DraftStreet has about 35,000 to 53,000 paying registered users. Considering that recent surveys have players spending about $100 per year on league fees would equates to roughly $3.5 to $5.3 million in revenue. Undoubtedly DraftStreet would love to be able to grow its user base to 10-15 million players. If the percentage of paying players remains that same, that could net the site in the range of $100 million in revenue. That figure would be tough to ignore from competing daily fantasy sites, traditional game providers like Yahoo and ESPN, and from state and federal regulators.
Related: DraftKings, Inc. closes $24 Million in Series B funding
