Fantasy sports are in the foreground of the online gaming industry. The craze for Fantasy sports has grown massively. It is already a billion-dollar industry with no signs of slowing down. The popularity of Fantasy Sports skyrocketed during the Covid-19 pandemic. The most appealing feature of Fantasy Sports is the ability to earn real money by playing fantasy games.
Fantasy gaming started with traditional sports like cricket, football, hockey, etc. but with the rise in popularity, fantasy games have expanded into the eSports sector. Many game app development companies are developing fantasy sports platforms as the industry shows massive revenue potential.
In this article, we have listed important things that you need to know about fantasy sports if you are a newcomer to the industry. So without further ado, let’s get started.
The Popularity of Fantasy Sports
The credit for the popularity of Fantasy sports can be given to the Covid-19 pandemic. The lockdown accelerated the growth of Fantasy Sports. While the whole world was in lockdown, the online fantasy sports industry was flourishing. Fast forward to today, online fantasy sports is now a billion-dollar industry and has many big names that are dominating the industry today.
The total number of fantasy sports players in the United States was 45.9 million in 2020. Over 78% of the players play fantasy football making it the most-played fantasy sport in the world followed by baseball and hockey.
The most appealing feature of fantasy sports is the play-to-earn feature. This feature allows players to earn real money by playing fantasy games. It is the driving force behind fantasy sports’ popularity and is what drives user engagement. Many people are flocking towards online fantasy sports because of the profit-generating capability of fantasy games. Also, these games are fairly easy-to-play and don’t require in-depth knowledge about the particular sport.
Great Revenue Potential
The Fantasy Sports industry is a promising and lucrative business venture. Fantasy sports industry is expanding with no signs of slowing down. In the current scenario, the industry is showing massive revenue potential. Big names in the industry like MPL, Dream 11, FanDuel, etc. are multi-million dollar companies with a massive user base worldwide. There are various modes of generating revenue in a fantasy sports platform. Some common methods include-
- League Entry Fees
- Third-party advertisements
- E-store integration
Gaming is no longer considered an isolated activity. With the advancements in technology, gaming has become a social activity. Features like Live Chat and Referral Rewards in fantasy sports platforms allow the players to invite their friends and family into the gaming platform and experience the game with them. These great features are essential to driving user engagement. Some online fantasy sports platforms also provide additional rewards if you invite a friend to their platform. These features are added during fantasy sports app development to increase user engagement and user retention simultaneously.
Regulation in Government Policies
State-wise laws are imposed on fantasy sports. In India, online gambling and betting are illegal. However, games that include skill and strategic planning are considered legal and are permitted by the Indian government. Excluding some states like Assam, Sikkim, Nagaland, Andhra Pradesh, Orissa, and Telangana, fantasy sports are legal in India under the Public Gambling Act of 1867.
Future of Fantasy Sports
The future of fantasy sports seems promising. Various fantasy sports development companies are developing fantasy sports platforms and entering the market. The advancement of technology has also allowed fantasy sports developers to incorporate emerging technologies into these platforms.
Technologies like AR/VR, AI, Blockchain, etc. are being incorporated into fantasy sports platforms and are shaping the future of fantasy gaming. The advent of these technologies will improve the gaming experience significantly. As of now, the future of the industry seems promising with exciting revenue potential.
The market statistics state that the Fantasy Sports industry is thriving in the online sector. It is a billion-dollar industry. According to Business Wire, the global fantasy sports market is expected to be worth $20.1 billion in 2022. It is expected to grow at a CAGR of 11.4% during the forecast period(2022-2027). It is expected to be valued at $34.6 billion by the year 2027. The most popular fantasy sports are-
The most preferred platforms by comapnies are Websites and Mobile Applications(Android and iOS).
The market can be divided into three demographics-
- Under 25 years
- 25-40 years
- Above 40 years
Gaming is a mainstream source of entertainment for the tech-savvy generation. The popularity of fantasy sports is increasing day-by-day. As one of the fastest-growing segments in the online gaming industry, online fantasy sports platforms have acquired a lot of investments over the years. Many companies are using this opportunity to develop fantasy sports platforms to generate maximum profits. The increased popularity has made the fantasy sports industry a lucrative investment opportunity with great ROI.
Fantasy sports is an emerging gaming segment. Game development companies are taking advantage of the great revenue potential of the industry. Moreover, with the introduction of emerging technologies, the fantasy gaming sector has been revolutionized. The use of advanced technologies like AI and AR/VR has provided an immersive and interactive gaming experience that is sure to drive user engagement. All the above points prove that the industry is very profitable and if you choose to invest in the fantasy sports industry, you won’t be disappointed.