Fantasy sports have been around for over 70 years, but it’s only recently that many of us have started to sit up and take notice of it. In recent years, it’s grown in popularity and amassed millions of fans worldwide. But, what is fantasy sports betting, why are people betting on it, and how can you as an entrepreneur leverage its popularity?
What are fantasy sports?
Fantasy sports is a game played via the internet where the player creates a virtual team. These teams can either be proxies or real, but they only play in the digital realm. The teams then compete based on statistical performance and calculations. These statistics are based on how the players would perform in real life. Each version is awarded points, and these are compiled to form a league. Typically, they will be calculated by a computer or a “league commissioner.”
The concept of fantasy sports dates back to just after the end of World War II. During the 60s, fantasy football leagues started to take off, followed by baseball in the 80s. By the end of the decade, it was estimated there were thousands of leagues across the US with between eight and 12 players in each team.
But it was the internet that propelled them to the next level. By the mid to late 90s, fantasy sports were all over the web and attracted thousands of new players every week.
Driven by advancing technology, smartphone usage, fast internet, and a desire for digital entertainment, the sector is expected to be worth more than $2 billion by 2026. This demonstrates an absolute growth rate of 120% in six years. The most popular fantasy sport is American football, bringing in some $539 million during the forecasted period.
What is fantasy sports betting?
Fantasy sports betting differs from regular sports betting. The main difference is that bettors don’t place wagers on a particular match or league outcome. Instead, they create a fantasy team and then use it to compete against others in the hopes of winning money. Betting can take place throughout an entire season or just for one or a certain number of games.
Market overview
Sports betting has always accounted for a significant chunk of the global gambling market. Overall, the sector is worth more than $516 billion. As for online gambling, it’s expected to surpass $100 billion in the next couple of years, increasing at a rate of around 13% year on year.
75% of sports bettors also enjoy fantasy sports. Some 80% of these are male, typically aged between 18 and 34 years old. Football is the most popular, followed by baseball, basketball, hockey, soccer, and golf. The total global number of fantasy sports players and bettors isn’t precisely known, but it’s believed to be hundreds of millions.
Fantasy Sports and Gaming Association 2019 survey
Fantasy sports betting had been growing steadily in its audience, but this was accelerated in 2020. When the COVID-19 pandemic took hold, most of the world’s sporting events were cancelled or postponed. This left millions of sports betting fans with nothing to bet on and no games to follow. The crisis created a void, but quick-thinking operators were able to fill it. Fantasy sports betting and eSports betting were quickly shoehorned into operators sites. Operators promoted them, and players were supported in learning how to take part.
Fantasy sports has been credited with unlocking a significant gap in the market and driving new demographics to proper, licensed betting sites. Then, once regular sports opened up again, fantasy sports fans stuck around. 78% continue to bet on traditional sports, as well as fantasy sports.
In short, the emergence of fantasy sports has been a massive boost for the betting industry. New clients, opportunities, and increased revenue have benefitted all involved. In 2021 and beyond, offering fantasy sports is a great idea as it strides closer to mainstream enjoyment.
Why it’s worth getting involved in fantasy sports betting?
The gambling sector is experiencing a period of rapid yet sustainable growth. This means numerous opportunities exist for those wishing to offer fantasy sports betting platforms or services. The market remains unsaturated, and public interest is high, meaning there are plenty of clients and dollars to go around.
Additionally, the statistics show that many sports bettors enjoy fantasy sports and vice versa. Integrating this betting option into your portfolio will increase customer loyalty and profit. It will also result in more time spent on your site, allowing you to cross and upsell.
All in all, offering fantasy sports betting is a win-win situation. You will keep customers happy, encourage new demographics, increase your competitiveness and have a healthier bank balance.
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