Fantasy sports and betting games provide high growth opportunities to sports companies. In this article, we discuss the prospects of fantasy sports, its growth drivers and tips to build a successful fantasy sports game.
In spring 2019, Americans spent around $8.5 billion in betting on college basketball games. According to a report by 360marketupdates.com, the global Fantasy Sports market size was $13.90 billion in 2018 and is expected to reach $33.20 billion by 2025, with a compound annual growth rate of 13.2% between 2019 and 2025. For the sports industry challenged due to the COVID-19 crisis, betting and Fantasy sports offer huge growth opportunities.
Growth in Digital Infrastructure: As per data from Statista, 44.9 % of the world’s population is predicted to own a smartphone by the end of 2020. The growth of smartphones in the last decade along with faster internet connectivity has fueled the growth of fantasy sports. The option of participating in the betting or fantasy game on their device at anytime, anywhere has driven user engagement.
The Legality of Fantasy Sports: Fantasy sports, in its initial years, was considered illegal and banned in many countries. However, subsequent court rulings, across many countries, have defined fantasy sports as a game of skill rather than a chance. This has led to the introduction of many key players and platforms.
Partnerships with Sports Leagues: Today all major sports leagues and broadcasters have partnered with fantasy sports platforms. In 2015, DraftKings entered into a three-year deal with ESPN valued at $250 million. DraftKings also entered into partnerships with New York Giants, NFL Players Association and Oakland Raiders. Similarly, other gaming companies have partnered with teams and leagues giving them high popularity and fans.
Increased Investor Interest: The popularity of fantasy sports and betting has also resulted in the flow of big money through Venture Capitals and Corporate investments. This has helped many startup gaming companies scale big and leverage new technologies in their games.
The latest survey by DraftKings reveals that almost 50% of the fantasy sports players have started following a new sport since participating in the fantasy sports, and around 80% of the players are watching or reading more sports content. Fantasy sports has completely changed the way sports fans consume sports content. In fantasy sports, every moment of a game counts regardless of the teams, the players and the score. This has resulted in more viewership throughout the game as fantasy players want to know the results. A high loyal viewership throughout the game can bring more revenue for clubs and leagues through sponsorships and broadcasting rights. Broadcasters get sure of the viewership and hence are ready to pay more to get the broadcasting rights.
- Partner with a Good Mobile App Developer: What are the qualities to look in an app developer your game? Look for an app development company that is experienced in building apps and games and has expertise in new technologies like AI and Machine Learning (ML) etc., as data will be core of your sports game along with the game play. Also check if your app development company needs to have expertise in driving fan engagement. Gemini Consulting & Services can help you build fantasy sports games leveraging advanced technologies. We employ the latest development techniques for quick go-to-market games. Click here to know more about or services.
- Focus on User Experience: There is tough competition in the fantasy sports market. And you have games for all popular sports. So, user experience has become a key differentiating factor apart from gameplay. Keep user experience at the center of your app strategy right from the beginning.
- Keep User Participation Easy: Most of the fantasy sports games involve real money and cash awards. Every country has regulations on these games, so you need to comply with the rules. In addition to that, make it easy for users to participate. If your game involves real currency then make it easy for users to add and withdraw money by providing all popular payment options like wallets, credit/debit cards and bank transfers.
- Build a Fan Engagement Strategy: Fan engagement is essential to drive revenue. The more people play your game, the more profits you will earn. Use fan engagement techniques like app notifications, weekly/monthly leaderboards, exclusive content and free merchandise etc., to keep users hooked to your game. Also, keep adding new features to the game to maintain the excitement in your game. You can try bigger contests, new rules to the game and more challenges to keep your fans excited.
- Partner with a Broadcaster or League: This requires big investments but can give high visibility to your fantasy sports game. Higher visibility will bring in more fans to your game.