When DraftKings guaranteed $2.5 million in prize money for its first ever Sports Betting National Championship, the company likely knew that it was setting an ambitious target for a contest that had never been tried before. But a lack of entries just days before the tournament begins could lead to a largely overlay than anyone imagined for the event.
As of noon on Wednesday, only 136 entries had been received for the DraftKings event in New Jersey according to information on the tournament website, far below the 500 that would be necessary to meet the guaranteed prize pool.
Most Entries From DFS Qualifiers
The tournament costs $10,000 to enter. However, $5,000 of each entry is used as a bankroll, while $5,000 goes into the prize pool. That means that the 136 participants will be contributing only $680,000 to the prize pool, requiring the sportsbook operator to pick up the rest of the tab.
The problem appears to be a lack of direct entries into the championship. So far, 90 players have qualified for the event through daily fantasy sports contests, with 12 more entries being awarded through giveaways. Only 34 people have directly bought into the competition.
It’s almost certain that there will be plenty of late entries to boost those numbers before the championship begins on Friday. For one thing, if major poker tournaments are any indication, many people who want to buy in directly might decide to do so just before the tournament begins.
DraftKings Offering Incentives to Attract Players
The allure of a huge overlay should also attract attention from those who might otherwise not see much value in playing – often, this is a factor that tournament organizers can count on to limit the risk of having to put too much of their own money into the prize pool.
But DraftKings appears to be at least somewhat concerned about the shortfall in entries so far. In an email sent out on Tuesday, the DraftKings Sportsbook not only reminded bettors that there was still time to enter the event, but also offered anyone who registered by Thursday a $500 travel voucher and up to three nights of hotel accommodations in New Jersey. The tournament is based out of Jersey City, but players are not required to stay on site for the entire weekend.
How the Championship Works
Regardless of how many players ultimately enter the national championship, the eventual winner is guaranteed a prize of at least $1 million. The format will see players each compete with a $5,000 bankroll, out of which they must bet at least $1,000 over the course of Friday and Saturday. Each participant must also bet at least $2,000 on only the two NFL playoff games on Sunday.
Every person who enters the contest will get to keep their bankroll at the end of the tournament. Those who build the largest balances while following the betting rules will then be eligible for additional prizes, with the top performer earning the $1 million prize.
