Market Trends of Fantasy Sports Industry
Increasing Sports Fan Engagement may Drive the Market Growth
- Fantasy sports provide a highly engaging and interactive experience for sports fans. By participating in fantasy sports, fans become more invested in the outcomes of real-life sporting events. It adds a layer of excitement and competition, allowing fans to showcase their knowledge, skills, and strategic abilities. The desire for deeper engagement and the sense of being a part of the game drive participation in the fantasy sports market.
- As per the Fantasy Sports & Gaming Association (FSGA) statistics, the number of fantasy sports participants in the United States increased from 42 million in 2015 to 50.4 million in 2022. The overall number of fantasy sports participants in North America reached 62.5 million in 2022, indicating that slightly over 80% of all participants were based in the United States. Such a significant size of fantasy sports players might considerably contribute to the market growth.
- Moreover, fantasy football or soccer is one of the most popular sports, just like the real game, with thousands of leagues to compete in. According to FIFA, football, or soccer as it is more often known in the United States, has over 5 billion fans worldwide. Some major football leagues include Premier League, La Liga, the Bundesliga, MLS, Serie A, Ligue 1, etc.
- Fantasy soccer has various equivalent formats played worldwide with over nine million participants. Entrepreneurs are offering these sports platforms from multiple locations to appease the growing demand from fans for virtual versions of their preferred sports. Such significant engagement of football fans would significantly drive the market growth.
- Further, various leagues have partnered with fantasy sports platforms to engage fans better and increase their fan base. For instance, in March 2022, MLS announced a multi-year partnership with Sorareto to launch non-fungible tokens (NFTs) for all MLS clubs and players that can be collected and used by the platform's 1.5 million users across 184 countries in its blockchain-based fantasy game. Major League Soccer (MLS) created a new emerging venture team focused on three areas, increasing the league's fan base, driving revenue, and bringing in new and emerging technologies to be utilized by the league and its 28 clubs.
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North America to Hold a Significant Market Share
- North America presently holds a prominent position in the football fantasy sports market. In the coming years, the region is anticipated to account for notable expansion due to economic growth, increasing demand for football, growing internet-accessible tools, and sports sponsorships, partnerships, acquisitions, and innovations.
- For instance, the National Football League (NFL) and DraftKings Inc., a prominent digital sports entertainment and gaming industry, and for its daily fantasy sports and mobile sports betting apps, recently made a partnership to expand current daily fantasy sports (DFS) and content partnerships to Canada. The two organizations' connection has been strengthened by the announcement of an expanded agreement, which will also improve the DFS user experience in Canada as the NFL season moves closer to the Super Bowl.
- Moreover, sports have a deeply ingrained cultural significance in North America, with passionate fan bases and widespread interest in various professional leagues such as the National Football League (NFL), National Basketball Association (NBA), National Hockey League (NHL), and Major League Baseball (MLB). This strong sports culture provides a fertile ground for the growth of fantasy sports, as fans are highly engaged and invested in the outcomes of games.
- Fantasy and gridiron football are the two most prominent fantasy sports in the United States. Due to rising interest in football leagues like the Greater Oakland Professional Pigskin Prognosticators League (GOPPPL), National Football League (NFL), and American Football League, football contributes a significant portion of the fantasy sports market.
- Also, Canada has a significant gaming industry. Canada's gaming industry is diverse, from online gambling to fantasy football and multiplayer first-person shooter games. The expansion of the Canadian fantasy gaming market has been driven by several key factors, such as technological innovations, consumer preferences for new products, shifts in public perception, and innovation. This has further translated into interest from international companies wanting to make a strong foothold in Canada.
- The region witnessed various acquisitions for increasing performance metrics. For instance, recently, A daily fantasy sports business Betcha Sports, which blends gaming with social networking elements, was acquired by Vivid Seats for USD 25 million in Vivid Seat stock. Such initiatives would enhance the businesses by implementing advanced technolgies in their portfolio, thereby driving the market growth.
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