Surging demand for fantasy sports worldwide will spark a doubling in fan spending by 2021 and continue to deliver big profits, says a new report from Juniper Research.
Fantasy sports providers offer more than four times the return on investment than traditional online betting, Juniper adds in its Daily Fantasy Sports: Growth Opportunities & Player Strategies 2016-2021 analysis.
Revenues will climb to $5.3 billion in 2021, more than double the $2.6 billion expected to be spent this year.
Helping drive growth will be markets outside the U.S., including Australia, the U.K. and Latin America plus Europe. “West Europe will become the next major market over the coming 5 years,” Juniper predicts.
The growth will occur even as leading players DraftKings and FanDuel move toward a merger, Juniper adds.
“[P]roviders’ interest in the market will remain high, with margins reaching over four times those of traditional online casino games providers in 2021,” Juniper points out.
However, Juniper cautions that players’ unreal expectations for cash could be a problem.
“DraftKings and FanDuel have used aggressive marketing strategies that gave rise to accusations of false advertising and concerns with cost overruns,” research author Lauren Foye writes. “Both they and emerging players will need to quell suggestions that only 10% of ‘professional’ players win the monetary prizes on offer.”
Learn more at:
https://www.juniperresearch.com
