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A common misconception with the number of states legalizing online sports betting is that you must pay to even play. This is incorrect.
Every legal sportsbook and daily fantasy site (DFS) in the United States—including FanDuel—is free. You just have to use money to place bets or enter paid contests. Setting up an account on FanDuel is completely free.
While DFS has both paid and free contest entry fees, a handful of states do not allow residents to participate in these tournaments. FanDuel Sportsbook is legal in roughly half the country, as more and more players are betting money on specific teams and players in an attempt to make money off their knowledge.
How Does FanDuel Makes Money on Sports Betting
According to our sports betting statistics, FanDuel is America’s largest sportsbook with more than 12 million registered users.
Like other sportsbooks, FanDuel charges what’s called vigorish (“vig”) or juice on wagers to make money. When you look at a standard spread or total, for example, you will notice the standard odds are -110 on a 50/50 bet.
This means, instead of winning how much you bet, you would only win about 91% of what you bet. This difference is what FanDuel charges to take your bets and how they make money.
>> Read More: How to Read Betting Odds
Though it’s possible for individual players to profit off FanDuel, the sportsbook will almost always make money off all bettors in aggregate.
How Does FanDuel Makes Money on DFS
FanDuel’s popularity disrupted the long-term fantasy sports industry by creating short-term fantasy sports options, turning season-long contests into a daily competition. Daily, users can create a fantasy sports team and compete against friends or strangers in these competitions.
Since 2009, FanDuel DFS has served sports fans with multiple free and paid contests. For tournaments with no fees, the company sells advertisements around its platform to make a profit.
As for the paid contest, FanDuel keeps 10% of the entry fees, paying out the remaining 90% to top players.