Stable Trends in the Field of Fantasy Sports: Expert Opinion

The Business Research Company international consulting organisation predicts that by the end of 2025, the capitalisation of the fantasy sports sector will reach $38.6 billion. Analysts expect an average annual growth rate of the niche at the level of 14.7%.

The Bett-Market studio offers operators to consider the main reasons for the sphere development, learn about its latest trends, and find out about brands, whose activities largely determine the popularity of the sector.

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Principles of Entertainment Operation

Participants of popular fantasy games create virtual teams and compete against each other in one-off matches, tournaments, and seasonal campaigns.

As a rule, the gameplay consists of the following stages:

One-off matches and short tournaments have almost the same gameplay as seasonal fantasy tournaments. The main difference lies in the more dynamic process where key bets need to be placed faster. Mini-competitions do not have an off-season, draft, or other events that are typical for major sports campaigns.

Why Gamblers Prefer Fantasy Entertainment

Solutions of this type are offered by almost all well-known bookmakers. Some of them work only with the end consumers — gamblers — and some choose to create high-quality software and interact with B2B operators.

The fantasy market is an incredibly promising sector, which, according to forecasts made by Business Research Company, will increase by 58.8% by 2026. One of the growth factors is an excellent response among players.

Reasons why users like the entertainment:

1. Realism. Every gambler dreams of plunging into professional sports and becoming a high-class manager. Fantasy solutions provide this opportunity at no extra cost. Software vendors create the most realistic picture, developing a game that is thought out to the smallest detail.
2. Application of the strategy. Unlike classic slot machines where the results depend on the RTP percentage and pure luck, in fantasy sports, it is important to use strategies and mathematical analysis. Those customers who carefully form a team of athletes and actively follow what is happening in the real league rarely find themselves “in the red”. This attracts professional players, and, respectively, the industry is growing rapidly.
3. Good prizes. Top teams are sponsored by well-known companies for which fantasy sports is a great place for marketing activities and brand development. There is a lot of money going into the betting market, which also attracts users from all over the world.

Key Indicators of the Niche’s Growth

In addition to the high interest of gamblers, the following factors affect the increase in the market volume:

The Proliferation of Smartphone Owners

The use of mobile devices makes gameplay faster and more comfortable, especially given the appearance of budget products in the market. Players can bet on their favourite teams while studying or working, which significantly increases the time they spend on the gaming site.

According to forecasts, by 2025, the level of penetration of smartphones in the United States market, for example, will reach 83%, that is, it will grow by 35%. Considering the population of the country (260 million people), we can say bookmakers will get access to a very promising sales region.

Increase in the Number of Sports Leagues

At the moment, the niche is segmented according to the following parameters:

• depending on the sports discipline — football, basketball, hockey, volleyball, car racing, and others;
• according to the type of the event — seasonal, daily (short matches), mixed;
• depending on the format of use — paid, free, or combined.

Due to the deep fragmentation and the emergence of new segments, every player will be able to find a fantasy league to their liking, which has a positive effect on the growth of the sector.

Thus, in 2021, the number of offers in the fields of fantasy baseball and cricket has increased. Such niches have many fans all over the world. Baseball is a traditional North American sport, while cricket is more popular in Asia.

Effective Marketing

People are investing in the purchase of virtual advertising space more and more often, which raises the awareness of gamblers and, as a result, influences the capitalisation of the industry. According to Dentsu Aegis Network, in 2020, digital marketing grew by 26%, and today, the world’s leading providers of betting services continue to develop this direction further.

In 2021, the global IT corporation, Google, lifted the ban on advertising fantasy sports software vendors. To launch a marketing campaign, it is enough for manufacturers to provide a licence for the release and distribution of software.

You can advertise betting services directly through the Google search engine or using Google Ads and DV360 branded services.

The role of professional streamers in the distribution of fantasy games will also become more important. To improve the content, major developers cooperate with streaming companies.

For example, in 2020, the Fan Code brand signed an agreement with the NBA to broadcast games in the live format in India, Australia, Japan, and other states in the Asia-Pacific region.

Active Introduction of Information Technologies

The most reliable sportsbook software vendors focus on such IT solutions as:

• artificial intelligence;
• 5G wireless network.

Artificial Intelligence

This is a set of mathematical algorithms that process large amounts of information and perform routine tasks.

In the fantasy segment, AI is used to create special software that helps people make decisions about managing their teams.

The program will advise gamblers on the following matters:

• what sportsmen it is better to buy/exchange;
• which tournaments to take part in;
• what permutations inside the team to make.

Moreover, the use of AI speeds up user verification and the confirmation of their money transfers.

In September 2020, the IBM and ESPN leading betting software vendors presented a new AI-based feature — IBM Watson. The product is responsible for the provision of secure transactions and winning game strategies. The program calculates the chances of selected athletes, teams, and leagues, thus helping players make informed decisions.

5G Wireless Network

In 2020, the emergence of this technology increased investment in telecommunications infrastructure by 89%. The lion's share of cash injections was provided by large betting providers.

It is predicted that the application of 5G will increase the performance of gambling platforms, guarantee a better user experience, and stimulate the growth of the fantasy market. IT specialists note that resources connected to 5G are up to 100 times faster than their 4G counterparts.

Market Segmentation by the Distribution Regions

Fantasy entertainment is a promising business area. However, to launch a successful betting project, entrepreneurs need to understand which location will provide the highest profitability.

North America

It is expected that from 2021 to 2026, the volume of the local market of fantasy entertainment will increase by 10.7% every year. The main growth catalyst will be the gradual legalisation of online betting in the country.

In 2026, about 49% of revenue will be accounted for by North America, which can be explained by the growing interest in the fantasy sports niche and an increase in technologically savvy customers.

Recall that in 2018, the US Supreme Court lifted the ban on online gambling. As for the betting sector, it is controlled by local authorities. As of early 2021, fantasy games were considered legal in Nevada, Michigan, Pennsylvania, Delaware, Iowa, New Jersey, and other states.

Key facts about the development of the niche in the US:

• The state regulator that controls the work of betting companies and monitors adherence to responsible gambling principles.
• DraftKings and FanDuel providers are considered the most successful and well-known brands in the region. About 90% of all its revenue is accounted for by these manufacturers. The list of top 5 software vendors also includes Yahoo Daily Fantasy, Eaglestrike Fantasy Sports, and FantasyDraft.
• The most popular divisions are football, basketball, hockey, and baseball.
• Content is delivered through the Hotstar, ESPN+, and Hulu streaming platforms. Players can also bet on their favourite teams in land-based kiosks and via lottery terminals.

Asia

The dominant position in this market is occupied by India, the country with the second-largest population in the world. At the end of 2020, the sector generated 15.6% of the income from the total profit of the industry.

Features of fantasy sports in India:

• Cricket is extremely popular in the country. The game brought together many major brands, celebrities, and in-demand league tournaments (IPL, ICL, and others).
• Dream11 is India's largest fantasy sports company estimated at $1 billion. The provider has released a modern cricket app that allows people to participate in international competitions, create their teams, and receive awards. At the beginning of 2021, 8 million users were registered on the Dream11 platform.
• The second most popular solution in India is fantasy football. It is popular with 33% of gamblers. Virtual basketball and horse racing are also in demand.

Europe

According to the report of Business Research Company, at the end of 2020, 16% of revenues in the fantasy niche were accounted for by the European market, and by 2026, this figure will increase by 26%. It is expected that Germany, Great Britain, France, Italy, and Spain will become the main sources of income in the region.

Key facts about the development of the European segment:

• Football is the leading direction in the industry. By 2026, its capitalisation will reach $1 billion. The most popular one is the UEFA Champions League solution with about 6.5 million regular users.
• The market share will increase by 14%. At the same time, the absolute growth will be more than 119% in the period from 2020 to 2026.
• Over 4 years, Europe will receive an additional $596 million in revenue thanks to sponsorship contracts and investments in fantasy football, car racing (similar to Formula 1), and horse racing.

The Main Things about the Prospects of Fantasy Entertainment

Cooperating with us, you will receive:

• high-quality products from the best manufacturers in the industry;
• a platform with flexible odds and built-in widgets;
• assistance in licensing and promotion of the project;
• technical support.

We can either help you establish a profitable business or improve the assortment of an already operating bookmaker’s office.

• In solutions in the fantasy format, there are virtual team competitions where the prototypes of famous athletes become participants. Players can create teams, change sportsmen, and monitor their results in real leagues.
• By 2026, the capitalisation of the industry will increase by 58.8%. The main indicators of growth are a huge number of corresponding leagues, effective marketing, and the active introduction of information technologies.
• The key regions of the distribution of fantasy games include North America (particularly, the US), Asia, and Europe. Football, basketball, hockey, and cricket matches are the most popular there.

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