Determining tournament payout structures for daily fantasy sports

Christopher Musco, Maxim Sviridenko, Justin Thaler

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Abstract

    With an exploding global market and the recent introduction of online cash prize tournaments, fantasy sports contests are quickly becoming a central part of the social gaming and sports industries. For sports fans and online media companies, fantasy sports contests are an opportunity for large financial gains. However, they present a host of technical challenges that arise from the complexities involved in running a web-scale, prize driven fantasy sports platform. We initiate the study of these challenges by examining one concrete problem in particular: how to algorithmically generate contest payout structures that are 1) economically motivating and appealing to contestants and 2) reasonably structured and succinctly representable. We formalize this problem and present a general two-staged approach for producing satisfying payout structures given constraints on contest size, entry fee, prize bucketing, etc. We then propose and evaluate several potential algorithms for solving the payout problem efficiently, including methods based on dynamic programming, integer programming, and heuristic techniques. Experimental results show that a carefully designed heuristic scales very well, even to contests with over 100,000 prize winners. Our approach extends beyond fantasy sports - it is suitable for generating engaging payout structures for any contest with a large number of entrants and a large number of prize winners, including other massive online games, poker tournaments, and real-life sports tournaments.

    Original languageEnglish (US)
    Title of host publication19th Workshop on Algorithm Engineering and Experiments 2017, ALENEX 2017
    EditorsSandor Fekete, Vijaya Ramachandran
    PublisherSociety for Industrial and Applied Mathematics Publications
    Pages172-184
    Number of pages13
    ISBN (Electronic)9781611974768
    DOIs
    StatePublished - 2017
    Event19th Workshop on Algorithm Engineering and Experiments 2017, ALENEX 2017 - Barcelona, Spain
    Duration: Jan 17 2017Jan 18 2017

    Publication series

    NameProceedings of the Workshop on Algorithm Engineering and Experiments
    Volume0
    ISSN (Print)2164-0300

    Conference

    Conference19th Workshop on Algorithm Engineering and Experiments 2017, ALENEX 2017
    CountrySpain
    CityBarcelona
    Period1/17/171/18/17

    ASJC Scopus subject areas

    • Engineering(all)
    • Applied Mathematics

    Fingerprint Dive into the research topics of 'Determining tournament payout structures for daily fantasy sports'. Together they form a unique fingerprint.

    Cite this