The Daily Fantasy Sports (DFS) Boom: Why Every League Wants a Piece of the Action

Just recently, Market Research Future released a report expecting the DFS market size to hit $14.29 billion in 2025, up from $13.27 billion in the previous year. Not just that, the organization still expects it to grow by a CAGR of about 7.72% to reach $27.92 billion within the next few years. This perfectly aligns with another study by Cognitive Market Research, which anticipates the market to grow at a CAGR of about 8.95% by 2030.

A quick look at any DraftKings DFS review reveals a broader trend of how DFS platforms are devising new ways of engaging players, which explains the industry’s continued growth. From engaging bonuses to optimizing their platforms for mobile use, these brands have contributed a lot to the continued appeal of this niche industry. And to learn more about why every league wants to take advantage of this craze, continue reading.

The Legalization of Sports Betting

After the US Supreme Court struck down the federal ban on sports betting in 2018, a lot would change in the sports betting industry. In fact, as of now, about 39 of the country’s states have legalized sports betting. Such shifts are important for DFS companies because they allow them to exploit the growing appetite for sport-related gaming.

Plus, don’t forget that the US sports betting industry, which is expected to hit $18.51 billion by 2025, is one of the largest markets in this sector. This already provides a good opportunity for the brands to reach new audiences. And if they are able to reach as many people as possible, it means more revenue and profits for the brands.

That’s why popular leagues like MLB and NBA have been welcoming partnerships with DFS platforms to take advantage of this betting surge. And, of course, it follows that as more nations continue to legalize sports betting, even more international soccer organizations could begin investing more in fantasy sports. This might allow them to maintain control over betting-related narratives while profiting from this continued growth.

Boosting Fan Engagement

Everyone can actually agree that fan engagement is like the heartbeat of the sports sector. Looking at the statistics, Statista found that 80% of leaders in this sector think improving both on-site and online fan experiences is the most relevant initiative. Since modern fans are quite diverse and tech-savvy, you want to take advantage of every opportunity to appeal to as many of them as possible.

According to Rachel Jacobson, Chief Revenue Officer at Infinite Reality, there is a growing audience who favor innovation over traditional sports. So, to avoid missing out on such audiences, investing in products like DFS can really be a great way to get started. Surprisingly, a recent study has noted that 56% of fans are shifting to social media for sports content, emphasizing just how important online platforms are in improving fan engagement.

Thankfully, with fantasy sports, fans can now engage more interactively and personally so that instead of just rooting for their favorite team, they can:

• Follow multiple games
• Track individual player performances
• Stay tuned in from the first quarter to the last

A few years ago, SURFACE at Syracuse University published a report claiming that 64% of fantasy sports participants watch more live events and 61% study more about sports. Since teams receive significant revenues from ads and sponsorships, more fan engagement means more revenue totals. Plus, these leagues can integrate fantasy stats into their mobile apps, allowing fans to track real-time player points, rebounds, assists, etc.

What Can We Look Forward to?

Well, it is actually true that DFS’ appeal is expected to grow more and more, which may welcome collaborations with more leagues. But as that happens, we also anticipate these brands will turn to advanced technologies like AI to improve the fan experience further.

This is why experiences like personalization could actually become the norm in this sector. Interestingly, customizing experiences can reduce customer acquisition and retention expenses by about 28%, according to Contentful.

On top of that, many have already made their platforms mobile-friendly to increase their reach among mobile owners. You don’t want to imagine the pain of failing to reach over 90% of the world’s population just because your platform is not designed for mobile use. In fact, according to WebFX, more than six in ten users highly regard mobile-friendly platforms than non-mobile-friendly ones.

And as the need for more authentic experiences increases, augmented and virtual reality technologies may become the norm. Fans will be able to access stadium-like views, real-time betting and in-game contests, which will also allow new forms of fan engagement and sports analysis.

What is Our Final Word?

Well, it’s clear that DFS is becoming too big for leagues to ignore. This industry, which was once niche, has become a popular way for leagues to deepen their connection with fans. As we already noted, there is a growing interest in innovation over traditional sports, which may put more pressure on traditional sports to devise new ways of engaging with fans.

Thankfully, DFS is one of the escape routes. By allowing players to build rosters and compete for cash prizes, among many other things, DFS is really helping leagues to improve fan connection. It’s no wonder that daily fantasy sports could remain at the forefront of sports entertainment experience as technologies continue to advance and new markets open up.