Sports Betting: The Future of Fantasy Sports
By: Neel Kulkarni
As we approach the fall season, there is no doubt that the 2021-22 NFL season will take center stage with fantasy sports as one of the primary reasons for its popularity. What was once a simple idea to engage viewers with the sport has turned into a $22 Billion industry drawing in millions of new sports enthusiasts every year. The countless mock drafts, auctions, and pre-game predictions have intrigued fantasy users for years, but a new era is now officially here: sports betting.
Helmed by promising companies such as DraftKings, Penn National Gaming, FanDuel, and other sportsbooks across the world, sports betting is shaping to lead the industry by storm.
According to SportsPro, it was reported in 2018 that a fully legalized U.S. sports betting market could be worth around $55 Billion annually. That’s almost twice the current value of the fantasy sports market, not to mention that new investments into sports betting can only increase future projections. 22 states have also already legalized sports betting and over 20+ states are either in the process of introducing or passing the bill. The trend is clearly upward so much to the point where investors such as ARK’s Cathy Wood are riding the wave to take advantage of the hot market.
On top of these revenue and investing streams, sports betting is doing considerably well with marketing and attracting customers. Because of FOMO (Fear of Missing Out) and endless free promotional bets, consumers may spend their entire day mindlessly scrolling through analytical spreadsheets all for a free bet on if the Yankees or Red Sox will win. Daniel Stone, head of data at Vixio GamblingCompliance, notes how even sports addicts below 21 are invested in sports betting through Barstool and other outlets companies use to keep their audiences engaged. The recent features of online betting through DraftKings, FanDuel, and other companies also makes it even easier to market bets as simple as a click of a button.
Ultimately, sports betting companies have been able to leverage this attractive market in front of the NFL, NBA, MLB, and other professional leagues where most of the publicity and money lies. Multiple partnerships have and continue to be secured in this space to enhance the fan experience while generating more revenue as well. It’s a win-win for both sides of the table, making it clear that sports betting is here to stay.