Are fantasy sports the next evolution in iGaming?

Fantasy sports have firmly established themselves as a promising area for growth within the highly innovative and constantly evolving iGaming sector.

This becomes evident when you look at the average fantasy sports player – young and tech-savvy, an avid sports supporter who is religiously following their favourite teams and athletes, while also representing the next generation of customers for operators.

Experts also agree that the vertical offers tremendous prospects, with Slotegrator the latest to do so. The online gambling provider highlighted that global fantasy sports are currently valued at $27.8bn at the turn of the year, and projections about the market expect it to reach $56.4bn by the end of the decade. The 15.2% average annual growth rate is also here to stay, Slotegrator added.

On the regulatory side, fantasy sports also create less hassle for operators looking to expand their offering, with many jurisdictions classifying the vertical as a game of skill rather than traditional gambling due to the strategising it requires.

This detail became instrumental for Allwyn’s US entry earlier this year thanks to the agreed $2.5bn acquisition of PrizePicks – the biggest daily fantasy sports platform in North America.

“Fantasy sports represent a strategic opportunity for operators to diversify their portfolios and strengthen player engagement,” said Ataur Rosul Abeer, Sales Supervisor at Slotegrator.

Fantasy sports hold the potential to retain player engagement as either a daily offering or a seasonal product, gradually strengthening long-term loyalty while also bridging the gap between online gaming and traditional sports betting – those enjoying the management of virtual teams can easily be converted into sports bettors, unless of course they are not already engaging with sportsbook wagering.

The technological aspect is also not to be underestimated, with fantasy sports being at the forefront of the latest tech – be it mobile-friendly UX, blockchain payments, artificial intelligence, or real-time data feeds. 

And with the format constantly evolving to feature the most beloved sports across the globe, be it more traditional options like football or niche products like esports, fantasy sports have infiltrated all corners of the world – from North America with PrizePicks, through Europe with Sorare, to Asia with Dream11, although the latter suffered some setbacks in India due to a new regulatory direction. 

Regardless, the fanbase it built through fantasy sports helped it bounce back, and Dream11 is now embarking on an ambitious expansion into multiple other markets.

Abeer concluded: “In the coming years, the future of fantasy sports will be determined by the combination of technology and strategic alliances. This is a sustainable, skill-based format that connects sports fans through competition, analytics, and community.”