Yahoo has grown by leaps and bounds since its founding in 1994, due in large part to its success in the online search and advertising space.
Rather than keep its eggs in one basket, the search engine giant has shown the ability to spread its wings over the past few years. Most recently, the company announced its intentions to take a run at real-money gaming. Yahoo unveiled an updated version of its popular fantasy-sports mobile app, with one big difference: players now have the ability to wager real money in both daily and weekly contests.
According to Ken Fuchs, vice president of publisher products at Yahoo, the internet company will generate revenue by keeping approximately 10 percent of entry fees.
With fantasy sports on the rise and laws regarding online gambling continuing to loosen, there is no better time than now for Yahoo to get involved.
While its Daily Fantasy game won’t be available to all residents of the United States, the company made it clear that it is legal to play in 45 states, with the only exceptions being: Arizona, Iowa, Louisiana, Montana, and Washington.
Will Yahoo Succeed?
Yahoo has found moderate success in the past by providing a platform for players to compete in fantasy sports for free. Once you get money involved, however, the entire game changes.
With nearly 57 million people playing fantasy sports in the United States and Canada in 2015, the opportunity to succeed definitely exists.
In addition to its name recognition, Yahoo should not have any trouble providing a top of the line experience from a technical perspective.
Conversely, users are only able to deposit $600/day via a PayPal account or credit card. Furthermore, funds can only be withdrawn into a PayPal account. Could this hold some players back from getting involved?
With so much competition from industry frontrunners, such as FanDuel and DraftKings, Yahoo has its work cut out for them. Even so, it has something that others do not: an established audience, thanks to a network of sports sites that currently generate nearly 100 million monthly users.
With its new Daily Fantasy app, Yahoo is stepping into unchartered water. This is the first time the company will generate revenue from a mobile app in a manner unrelated to advertising.
All the pieces are in place for Yahoo to succeed. Moving forward, it will all come down to whether or not the company can set itself apart in a crowded industry.