Global Fantasy Sports Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Fantasy Sports Market is expected to record a CAGR of 14.6% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 19.1 billion. By 2032, the valuation is anticipated to reach USD 50.4 billion.

Top 10 Countries Active Fantasy Sports Customers (2022) million

Source: According to Fantasy Sports Trade Association (FSTA)

The Fantasy Sports market refers to the industry that revolves around virtual sports games where participants assemble and manage their own teams of professional athletes. It involves drafting players, competing against other teams, and earning points based on the real-life performance of the chosen athletes. Participants often play for fun, engage in friendly competitions, or even compete for prizes in paid leagues.

The Fantasy Sports market combines elements of sports fandom, gaming, and social interaction. It leverages real-life sports events and statistics to create a virtual competition platform that appeals to sports enthusiasts. Key trends in the Fantasy Sports market include increasing popularity and user engagement, advancements in technology and mobile accessibility, the integration of real-time data and analytics, expansion into new sports and markets, the rise of esports fantasy, and the emphasis on social integration and community building. These trends shape the evolving nature of the market, enhancing the user experience and driving its growth.

Fantasy Sports Market – Significant Growth Factors

The Fantasy Sports Market presents significant growth opportunities due to several factors:

• Growing Sports Fan Base: The increasing global fan base for various sports, including traditional and niche sports, drives the demand for fantasy sports. The passion and engagement of sports enthusiasts contribute to the growing user base and overall market expansion.

• Advancements in Technology: Technological advancements, particularly in mobile devices and internet connectivity, have made fantasy sports more accessible and convenient. The widespread availability of smartphones and high-speed internet enables users to participate in fantasy sports leagues anytime and anywhere, driving market growth.

• Monetization Opportunities: The Fantasy Sports market offers various monetization opportunities. Revenue streams include entry fees, sponsorships, advertising, partnerships with sports leagues, and premium features or subscription models. These opportunities attract investments, encourage platform development, and drive market growth.

• Global Expansion: The Fantasy Sports market has opportunities for expansion into untapped markets and regions, such as Asia, Latin America, and Europe. These emerging markets offer a large potential user base and present opportunities for platforms to gain market share and drive growth.

• Diversification of Sports Portfolio: There are opportunities to diversify the sports portfolio in fantasy sports. Expanding beyond traditional sports, platforms can include esports, niche sports, and international sports to cater to a broader range of user interests, attracting new participants and driving market growth.

• Enhanced User Engagement: Opportunities lie in enhancing user engagement through gamification, interactive features, and personalized experiences. Features like player rankings, virtual competitions, social interaction, and rewards can increase user retention, participation, and overall market growth.

• Integration with Sports Betting: The integration of fantasy sports with sports betting presents opportunities to cater to users interested in both activities. Platforms can explore partnerships and features that allow participants to engage in fantasy sports and sports betting, providing a comprehensive and immersive sports gaming experience.

Fantasy Sports Market – Mergers and Acquisitions

The Fantasy Sports Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Fantasy Sports Market include:

• Yahoo Fantasy Sports and BetMGM: In 2020, Yahoo Fantasy Sports entered into a partnership with BetMGM, allowing users to access sports betting features directly from the Yahoo Fantasy platform.

• CBS Sports and SportsLine: CBS Sports partnered with SportsLine, a subscription-based sports analytics platform, to offer premium fantasy sports content, including expert analysis and tools for CBS Sports fantasy users.

• DraftKings Inc. and SBTech: In 2020, DraftKings completed its acquisition of SBTech, a leading provider of technology solutions for the sports betting and iGaming industry, to enhance its technology infrastructure and expand its market reach.

• FanDuel Group and TVG Network: FanDuel acquired TVG Network, a horse racing-focused sports betting operator, in 2020, to further diversify its product offerings and expand into the horse racing market.

• DraftKings Inc. and BlueRibbon Software: In 2021, DraftKings acquired BlueRibbon Software, a leading provider of jackpot and gamification solutions, to enhance its customer engagement and personalization features.

• Penn National Gaming and Barstool Sports: In 2020, Penn National Gaming acquired a 36% stake in Barstool Sports, a prominent sports media company, to leverage Barstool’s large fanbase and content ecosystem for its fantasy sports and sports betting platforms.

• Scout Gaming Group and Betsson: In 2019, Scout Gaming Group acquired B2B daily fantasy sports provider FanTeam, expanding its market presence and customer base in the European fantasy sports market.

These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Fantasy Sports Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Fantasy Sports Market – Significant Threats

The Fantasy Sports Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Legal and Regulatory Challenges: The Fantasy Sports market faces potential legal and regulatory challenges in different jurisdictions. Some regions may impose restrictions or require specific licenses for operating fantasy sports platforms. Changes in laws or unfavourable rulings regarding the classification of fantasy sports as a game of skill or chance can impact the market’s legality and operations.

• Competition from Illegal or Unregulated Platforms: The presence of illegal or unregulated fantasy sports platforms poses a threat to the market. These platforms may not adhere to proper licensing, data protection, or fair play standards, potentially leading to negative perceptions among users and undermining the trust and credibility of the entire industry.

• Negative Public Perception: Fantasy Sports can face challenges related to negative public perception, often associated with concerns about problem gambling, addiction, or the potential for insider trading. Such perceptions can lead to increased scrutiny from the media, public advocacy groups, and regulatory authorities, impacting the market’s reputation and growth potential.

• Declining Sports Engagement: The Fantasy Sports market relies heavily on the popularity and engagement of real-life sports events. Factors such as player controversies, labour disputes, or declines in overall sports viewership can result in decreased interest and participation in fantasy sports, affecting the market’s growth and revenue generation.

Report Scope

Category-Wise Insights

By Sports Type:

• Football: In the Fantasy Sports market, football involves participants creating virtual teams of real-life football players. It remains the most popular sport, with a significant user base and high engagement. The trend in football fantasy sports includes player statistics-driven gameplay, integration with live football events, and the rise of daily fantasy football leagues.

• Baseball: Fantasy baseball in the Fantasy Sports market revolves around creating virtual teams of real-life baseball players. It has a dedicated fan base and offers in-depth statistical analysis. Trends in baseball fantasy sports include advanced analytics, integration with MLB events, and the emergence of dynasty leagues and auction-style drafts.

• Basketball: Basketball fantasy sports involve drafting virtual teams of real-life basketball players. It enjoys a substantial following, with rapid-paced gameplay. The trends in basketball fantasy sports include real-time player performance updates, integration with NBA events, and the rise of daily fantasy basketball formats.

• Hockey: Hockey fantasy sports involve participants selecting virtual teams of real-life hockey players. It has a dedicated fan base and offers strategic gameplay. Trends in hockey fantasy sports include advanced player analytics, integration with NHL events, and the growth of fantasy leagues centred around international hockey competitions.

• Cricket: Fantasy cricket in the Fantasy Sports market revolves around creating virtual teams of real-life cricket players. It has a significant presence in cricket-loving regions, with a focus on match statistics and player performance. Trends in cricket fantasy sports include integration with major cricket leagues, in-depth player data, and specialized formats for T20 and Test cricket.

• Others: The “Others” category in the Fantasy Sports market encompasses various sports like soccer, golf, motorsports, tennis, and more. These sports have their dedicated fantasy sports communities, with trends including specialized formats for each sport, integration with major events, and the use of advanced analytics to enhance the gameplay experience.

By Platform

• Website: In the Fantasy Sports market, websites serve as online platforms accessible through web browsers. Users can access features like team management, player drafting, and league participation. The trend in website platforms includes user-friendly interfaces, advanced analytics, and personalized experiences to enhance user engagement and provide seamless fantasy sports experiences.

• Mobile Application: Mobile applications provide access to Fantasy Sports platforms on smartphones and tablets. Users can manage their teams, track player performance, and participate in leagues on the go. The trend in mobile applications includes intuitive design, real-time notifications, social integration, and integration with sports betting to cater to the growing mobile user base and enhance convenience and engagement.

By Age-Group

• Under 25 Years: In the Fantasy Sports market, individuals under 25 years of age represent a key demographic. They are tech-savvy and highly engaged with sports and gaming. Trends include a preference for mobile-friendly platforms, the integration of esports fantasy, and the use of social media for team sharing and interaction.

• 25 – 40 Years: The age group of 25 to 40 years constitutes a significant segment in the Fantasy Sports market. This demographic is typically characterized by a strong interest in sports and competitive gaming. Trends include participation in paid leagues, emphasis on data-driven decision-making, and demand for enhanced user experiences through interactive features and personalized content.

• Above 40 Years: While individuals above 40 years may be a smaller segment, they are increasingly embracing fantasy sports. This age group often consists of avid sports fans with disposable income. Trends include a preference for user-friendly interfaces, engagement with traditional sports like football and baseball, and the integration of fantasy sports as a social activity among friends and family.

Fantasy Sports Market – Regional Analysis

The Fantasy Sports Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: In North America, the Fantasy Sports market is well-established and highly competitive. The trend in this region includes the integration of sports betting with fantasy sports, offering a comprehensive sports gaming experience. Dominant players in North America include DraftKings Inc., FanDuel Group, and Yahoo Fantasy Sports.

• Europe: In Europe, the Fantasy Sports market is gradually gaining traction, with a growing user base. The trend involves expanding the sports portfolio to include popular European sports like soccer and cricket, catering to regional interests. Key players in Europe include FanTeam, Oulala, and FantasyBet.

• Asia-Pacific: The Asia-Pacific region showcases immense potential for the Fantasy Sports market. The trend in this region is the growing popularity of fantasy esports, with platforms integrating fantasy sports with popular esports titles like Dota 2 and League of Legends. Dominant players in Asia-Pacific include Dream11, MyTeam11, and PlayerzPot.

• LAMEA (Latin America, Middle East, and Africa): In the LAMEA region, the Fantasy Sports market is still in its nascent stages but showing promising growth. The trend involves strategic partnerships with local sports leagues and media organizations to increase market presence and engage users. Key players in LAMEA include Fantrax, Futbol Fantasy, and Althletto.

Competitive Landscape – Fantasy Sports Market

The Fantasy Sports Market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:

• DraftKings Inc.
• FanDuel Group
• Yahoo Fantasy Sports
• ESPN Fantasy Sports
• CBS Sports Fantasy
• NFL Fantasy Football
• FOX Bet Super 6
• SuperDraft
• RTSports
• Sleeper
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships. For example, In 2021, one major partnership in the Fantasy Sports market was between DraftKings Inc. and the Professional Fighters League (PFL). The partnership involved DraftKings becoming the official sportsbook and daily fantasy partner of PFL, expanding its reach in the combat sports industry and enhancing the fan experience.

Several new players have entered the Fantasy Sports market by adopting innovation and development strategies to establish their presence. These new entrants focus on enhancing user experiences through innovative gameplay features, mobile-friendly platforms, and advanced analytics. They invest in technology and user interface improvements to differentiate themselves in the market.

Dominant players in the Fantasy Sports market include DraftKings Inc., FanDuel Group, and Yahoo Fantasy Sports. These key players have established market dominance through their early entry, strong brand recognition, extensive partnerships with sports leagues, and large user bases. They leverage their robust platforms, strategic marketing campaigns, and continuous investments in technology to maintain their dominant position and attract new users, solidifying their presence in the market.

The Fantasy Sports Market is segmented as follows:

By Sports Type

• Football
• Baseball
• Basketball
• Hockey
• Cricket
• Others

By Platform

• Website
• Mobile Application

By Age Group

• UNDER 25 YEARS
• 25 – 40 YEARS
• ABOVE 40 YEARS

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America