# What Is an Overlay? How Does It Apply to Fantasy Sports on SkillDraft?

What is an overlay, and how does it apply to fantasy sports on SkillDraft? First, let's define what an overlay is.

If you are a newbie to daily fantasy sports, get used to hearing the term overlay. It will be used frequently in advertisements, promotions, and tournaments. Simply put, an overlay is the difference between the guaranteed prize pool dollar amount versus the amount that comes from the actual number of paid entries when the latter doesn't meet the guarantee. This means the overlay the amount of money that SkillDraft has to add to cover any the shortfall in the guaranteed prize pool, making it extremely beneficial to daily fantasy sports participants because your buy-in becomes more valuable.

The value of having fewer players participating is that there is a better chance to win a larger percentage of money than if there were more participants. The final, and most important, point is that an overlay equals extra money.

## The Power of Overlays

When a site advertises a \$100,000 guaranteed contest with a \$100 buy-in, the site needs to ensure the contest has at least 1,000 entries to hit the guaranteed amount so that it doesn't have to add any of their own money to the prize pool.

If the contest is ready to start and it only has 500 paid entries, those entries would only equal \$50,000. But, since the site is guaranteeing a \$100,000 prize pool, there is a situation where the site has to cover the \$50,000 shortfall. This is referred to as the overlay. That \$50,000 is money added to the prize pool by the site and is not derived from the participating players, so your buy-in is technically worth twice as much and your chances of winning are double!

## How To Calculate an Overlay

(Guaranteed Prize Pool) - [(Cost of Buy-Ins) x (Number of Entries)] = OVERLAY AMOUNT

\$100,000 – [(\$100) x (500)] = \$100,000 – [\$50,000] = \$50,000 overlay

Every decision you make is critical in the realm of daily fantasy sports, such as weather projections, lineup changes, and league choices, as they will all have a direct affect on your bottom line. Your goal is to always maximize your return as best you can. An overlay is one of the most powerful ways to have daily fantasy sports become a profitable endeavor for you, so take advantage of them when you can.

## The Site with the Most Overlays

When new sites launch and are trying to build a solid customer base, that is when you can find some true value. Currently, SkillDraft has the most overlays of any daily fantasy sports site due to it just launching. Visit SkillDraft.com to see the easy overlay money sitting there for the taking!

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