Fantasy Sports - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Fantasy Sports Market size is estimated at USD 32.75 billion in 2024, and is expected to reach USD 62.58 billion by 2029, growing at a CAGR of 13.83% during the forecast period (2024-2029).

Fantasy sports have become a prominent social phenomenon. The sport's increasing importance at an elite level attracts large investors, fantasy players, and fans alike. From draft parties to brand marketing and sponsorships to playoffs, fantasy sports engage fans with the competition.

A shift in the sporting culture has occurred over recent years with the introduction of several sports leagues, including badminton, football, rugby, basketball, and volleyball. In different countries, the growth of sports has been accelerated by technological progress, increasing use of smartphones, and internet penetration. With an increasing number of individuals participating in, discussing, or playing these sports, an enthusiastic fan base has developed, shaping how fans engage in sports and fueling the growth of fantasy sports.

Sports technology will create opportunities for highly qualified software engineers, data scientists, and cybersecurity professionals. It will likely increase the number of viewers, sponsors, and participation in sporting events, directly impacting sports development.

The growing popularity of players, the emergence of sports leagues, increasing investments in digital and internet infrastructure, and the launch of fantasy football applications to connect with their favorite sporting activity are driving the market growth.

More users should be encouraged to participate in fantasy sports due to awareness about their legality. In parallel, fantasy sports operators are beginning to actively market their products and make a conscious effort to ensure the integrity of their websites or applications by cooperating with professional football leagues.

Despite the problems caused by the COVID-19 pandemic in some fantasy leagues, these leagues continued to operate despite the shortened professional season. Despite the pandemic, the long-term prospects for fantasy sports are anticipated to remain positive. Due to increased interest in legalizing sports betting in the United States, the market has been experiencing a major influx of new players and well-financed new start-ups.

Fantasy Sports Market Trends

Rapid Development of the User Friendly and Smartphone Accessible Applications to Drive the Market Growth

• The ecosystem has driven increased internet penetration and usage of low-cost smartphones among urban and rural populations, monetization through revenue streams like pay-per-download and in-app purchases, and the growth of the fantasy sports market through subscription services, gamers, in-app advertising, incentive-based advertising, etc.
• Computers and the internet are used for all major fantasy sports competitions. The main mechanisms for protecting computerized systems are copyright, which grants authors exclusive rights for the publicity, distribution, and use of original literary works; patents, which give inventors exclusive rights for commercial exploitation of new inventions; and trade secrets protection, which safeguards confidential commercial information from potential abuse. Those who breach confidence can be held accountable through legal action.
• The convenience offered compared to other channels, especially when betting is carried out through a connected mobile device such as a mobile phone, is one of the main drivers of the online sports betting and fantasy sports market.
• Bets can be placed on computers, smartphones, and other connected devices through the Internet. Due to an increase in the number of gamblers who place bets on mobile internet, there is a growing opportunity for market growth.

North America to Hold a Significant Market Share

• The North American football fantasy sports market is very strong. The region is expected to experience significant growth over the next few years due to increased demand for football, rising Internet accessibility tools, sports sponsorship, partnerships, acquisitions, and innovations.
• Smartphones, cloud technology, and mobile gaming apps have increased the significance of the online gaming culture, and various state laws are challenging new players to adopt DFS. As 43 of the 50 states in the United States allow daily fantasy sports (Source: Legal Sports Betting), their popularity has significantly increased across the country. However, many legal barriers prevent daily fantasy sports (DFS) from being offered nationwide.
• Several states do not allow daily fantasy sports and have demanded that DFS sites cease operations. Instead of engaging the AG, the sites have stopped offering their services and are working to push laws that would make states that permit daily fantasy sports. The states that do not allow daily fantasy sports include Hawaii, Idaho, Montana, Nevada, and Washington.
• In addition, Canada's gaming industry is very important. It is varied, ranging from gambling on the Internet to fantasy football and multiplayer first-person shooters. A number of important factors, e.g., technology innovation, consumer preferences for new products, changes in public perception, and innovation, have contributed to the expansion of Canada's fantasy gaming market. Interest from international companies wishing to establish a strong presence in Canada has also increased.

Fantasy Sports Industry Overview

The fantasy sports market is fragmented, and the companies leverage strategic collaborative initiatives to increase their market share and profitability. However, with technological advancements and product innovations, mid-size to smaller companies are growing their market presence by securing new contracts and tapping new markets. Some prominent market players include CBS Sports Digital, DraftKings Inc., NFL Enterprises LLC, FanDuel Group, and Yahoo Fantasy Sports LLC.

• April 2024: The NFL announced a series of community events throughout Detroit as part of the 2024 NFL Draft presented as the NFL is committed to building more robust, more resilient communities by equipping students with the skills to form healthy relationships and protect their mental health. In support of this mission, it will host a Character Playbook Speaker Series to bring together local students for a live panel discussion and to participate in activities to raise awareness of the importance of mental health.
• March 2024: FanDuel announced a new multi-year partnership with the Carolina Panthers as an official sports betting partner. This partnership is part of several initiatives to reach out to sports fans across North Carolina, ahead, and was launched on March 11, 2024, of mobile betting in NC.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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