Fantasy Aces Daily Fantasy Sports Corp FASDF

RE:question

[lscfa]

Same model as the giants Draftkings and Fan Duel.....


players pay an entry fee which makes up prize pool

co. takes their 10% cut off the top of prize pool

remainder of prize pool payed out to players

if prize pool is guaranteed (instead of one that is based on no. of entries)  co. risks paying out more than taking in

TheRevenant2016 wrote:

was looking at the company thru sedar filings and MD&A
Having a problem understanding the revenue model/sustainability
How does the company show payouts as in prize money to the tune of $9Million
yet only taking in appx 1/8th of that in revenue
How can it afford to pay out 8 times in prize money what its taking in
as revenues?
Some help please is solicited if I am misinterpeting the revenue model
as I am kicking the tires on this for investment consideration but this
question is a game breaker for me. tia