Excellent New York Times article by Jay Caspian Kang
. I actually just watched "The Big Short" last night, and feel like there is an easy parallel: much like Standard & Poors essentially had to "sell" AAA ratings to shitty sub-prime mortgages packaged together as a tranche for fear of the rating fee going to a competitor (ie Moody's), DraftKings and FanDuel have to allow high-volume DFS gamblers to make hundreds, if not thousands, of entries using an computer algorithms (at $20/entry) in order to provide competitive prize money pools. By doing so, however, they completely take advantage of the "average Joe" DFS gambler who puts in one $20 entry. It's a systematic failure. In fact, one could also reasonably compare this to the high-frequency trading issue we saw on Wall Street in Flash Boys
- faster software allowed the "average Joe" trader to get screwed, for lack of better word (Editor's Note: Perhaps I just called Michael Lewis's next book?).