FanDuel expects to pay out $135 million this season (video)

Tom Griffiths, co-founder of Fanduel revealed that the daily fantasy sports site expects to payout $135million in prizes this season. This was discussed in an interview in October with Deidre Boulton during "Money Moves" on Bloomberg Television.

Fanduel started payouts in 2009 with an amount of $100,000. Every year since, the daily fantasy sports sites have seen increasing payouts with they year's $135 Million which represents a 270% increase from last year. Combine this with Fanduels securing of $18 million in funding earlier this year and with investors such as Comcast Ventures, Piton Capital, Pentech Ventures, and Bullpen Capital.

Griffiths also discussed how daily fantasy sports are growing at a faster rate than the traditional game providers such as ESPN, Yahoo and CBS. In addition, he points out the average fantasy player is in mid 40s but the average daily fantasy player is in his late 20s.

FtSb says: We would disagree that the average fantasy player is in his mid 40s. We believe the average fantasy player is in between 25-34 years of age according to Nielsen. This is also in line with what the Fantasy Sports Trade Organization is also citing that the average fantasy player is in there mid 30s. We do agree that the daily fantasy sports market is the fastest growing segment of fantasy sports. For the traditional game providers t would make sense for them to enter this market. The barrier they are facing is the question of legality of fantasy sports. Although at the federal level and the vast majority of states considered fantasy sports legal, it is the fact that there are states that consider fantasy sports illegal that provides enough pause for the traditional game providers from entering that market.