Understanding Overlay In Daily Fantasy Sports If you are fantasy sports lover or player, then you must have come across the word overlay. Do you really know the right meaning of overlay in Daily fantasy sports? How important is it for your winning? Actually only 10% of fantasy sports players know the concept of overlay in the game. Overlays add advantage to your game. See, how this works! Let’s understand the concept of overlay in daily fantasy sports- Basically, when there is free money being distributed by a fantasy site for a given contest, then it is known as overlay. It happens when the amount that is offered by site as a cash prize for a given contest exceeds the money that has actually been invested into the contest then the site owners distribute the exceeded money as overlay. This extra money basically comes from the entry fees of the contest. In overlay tournament, site offers guaranteed more money in prizes then the amount covered by buy-ins. People can identify the overlay tournament by watching the fill-rate of an upcoming tournament. There are some overlay tournaments in which site announces that a large sum of cash will be divided among the winners of the particular match or league. Sometimes hundreds of people join the match and sometimes this number gets increased to thousands. For example, at the time of writing, a fantasy sport site is hosting a GPP tournament for which the prize pool is set at $9,000. Assume that the entry fee is $12 and 855 people are allowed to join. If the contest fills to capacity – that is, 855 people enter it, then fantasy sport site will generate $10,260. That’s more than enough to match the guaranteed pot. Let’s say only 500 people enter the GPP. The cumulative entry fees will total only $6,000, well below the guaranteed pot. That’s an overlay. Reason for paying attention on overlays- There is a value assigned to each contest that a person joins. Keeping that in mind, it reflects the expected outcome. It can be increase or decrease with the expansion of game members. The concept of overlay can be considered in the below mentioned way too- Suppose you flip a coin 10 times. Each time Tails appear, you win 2 dollar. Heads, you lose 2 dollar. Your expected value for participating would be zero. But let’s suppose that you win 5 dollar each time heads appears while still only losing 2 dollar for tails. Your expected value would rise. You’re expected ROI is greater. It’s the same with overlays in daily fantasy GPPs. Following are the basis for identifying overlay situation-
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