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FanDuel has raised the rake in which they receive in contests that they run. The rake is the fee that a daily fantasy sports site takes in exchange for running a contest, so every time you enter a DFS contest, part of your entry fee goes to the prize pool, and then a small percentage goes to the site. This is the main source of income for sites such as FanDuel and DraftKings. Starting with this weeks contests FanDuel will now take 15% of contestants entry fees on all guaranteed prize pools. The rise in the rake they collect is only for contests that have an entree fee of $25 or less. This is reportedly a 2% to 5% raise compared to what they where collecting before the current rake hike. In comparison FanDuel’s main rival DraftKings takes a 13.5% cut from its popular Millionaire Maker contest. DraftKings could use this news to take players away from FanDuel but in order do that they would have to explain what rake is to it’s newest users who might not realize that they are being charged to play in these contests. DraftKings currently is not planning on raising the rake on their contests but that could soon change especially if FanDuel continues to fill their contests with the higher rake in place.

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