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Global Fantasy Sports Market - Outlook and Forecast 2023-2028
The global fantasy sports market is projected to reach USD 12.87 billion by 2028, growing at a CAGR of 12.19% from USD 6.45 billion in 2022. This growth can be attributed to the increasing popularity and attraction towards various sporting events, as well as changes in sporting formats, frequent tournaments, and the rising popularity of sports players. In recent years, the fantasy sports industry has evolved from a season-long game to a daily service provider, allowing users to play, utilize their skills, and earn money.
Currently, the fantasy sports market caters to a wide range of sports categories including Football, Baseball, Basketball, Hockey, Golf, Cricket, Soccer, and Nascar, among others. However, the availability of sports categories may vary depending on regions and countries.
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USD 6.5 billion in 2021
Sports, Gender, Platform, and Geography
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With the growing potential of the fantasy sports market, various vendors are entering the industry, while many others are in the pipeline. These vendors create platforms with enhanced user interfaces and features to attract a large customer base.
Promotional activities carried out by fantasy sports vendors on social media platforms play a significant role in driving the market. These platforms not only help attract customers but also facilitate customer engagement through contests, advice, and embracing current trends in fantasy sports.
The rise of social media platforms such as Twitter, Instagram, Facebook, and others has also contributed to the increase in women gamers. Women are actively participating in fantasy sports due to increased awareness through social media and other advertising mediums. This trend is expected to contribute to the revenue growth of the global fantasy sports market. In particular, there has been a notable shift with more women exploring the fantasy football industry, traditionally considered male-dominated.
However, it is essential to note that various countries impose restrictions on fantasy sports due to concerns about gambling and potential financial losses. These restrictions can act as a major restraint for the fantasy sports market, as vendors may lose out on opportunities in regions where fantasy sports are banned. Certain states in the US have already imposed restrictions and fines on fantasy sports platforms for non-compliance with relevant laws.
The market is segmented based on various factors, including sports, gender, platform, and geography.
Segmentation By Sport
Other Fantasy Sports
Segmentation By Gender
Segmentation By Platform
Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Spain, Nordic, Netherlands, Poland
APAC – China, Japan, India, South Korea, Australia, Indonesia, Malaysia, Singapore
Latin America – Brazil, Mexico, Argentina
Middle East & Africa – South Africa, Saudi Arabia, Turkey, UAE
The fantasy football segment is projected to be the largest segment in the global fantasy sports market. One of the key factors contributing to the success of fantasy sports within football is the distribution of substantial prizes to contest winners, with certain fantasy football contests paying out more than USD 9.8 million on a weekly basis. Additionally, sponsorship deals with NFL teams have played a significant role in the growth of the Fantasy Football segment, with companies like FanDuel and DraftKings having sponsorship deals with over 25 out of the 32 NFL teams.
Furthermore, fantasy football has led to increased viewership of matches across various leagues. These factors are expected to drive the growth of the global fantasy football market in the coming years. Vendors can tap into the massive fan base in this segment by offering interactive and innovative experiences, thereby maximizing profits.
Soccer, being one of the most popular sports worldwide, attracts passionate followers from almost all age groups. The global fantasy soccer market was valued at USD 1.4 billion in 2022, providing significant opportunities for the fantasy sports market due to the game’s large fan base. With the launch of numerous leagues and the presence of internationally renowned players representing local clubs across countries, fantasy soccer presents ample growth prospects. Various vendors, including Fantrax, ESPN, DraftKings, and MLS Fantasy, offer fantasy soccer games.
The global fantasy sports market is predominantly male-dominated, and the male segment is expected to grow at a CAGR of over 12% between 2022 and 2028. Men have historically associated themselves with sports for recreational and emotional purposes, making them a key target audience. Additionally, the high male population globally further supports the growth of this segment.
The female population in the global fantasy sports market has also witnessed significant growth, attributed to an increasing number of sports events catered towards women and rising awareness about various games among females. Although female end-users account for a smaller share compared to males, they remain a crucial focus for vendors in the fantasy sports market. The continually growing female population, along with various contributing factors, is expected to drive the demand for fantasy sports across regions.
The fantasy sports application segment is poised for immense growth and dominates the market. The widespread adoption of smartphones has led to the popularity of mobile application-based games. The convenience offered by these applications, allowing users to engage in fantasy sports from the comfort of their own space, is a major factor driving the segment’s growth. The involvement of advanced mobile app technologies further contributes to the expansion of the fantasy sports industry.
The website-based fantasy sports market has a substantial customer base in North America, with the segment generating over USD 2.5 billion in revenue globally in 2022. PCs, despite their higher initial cost compared to consoles, are considered more cost-effective in the long run, more versatile than mobile devices, and easier to use. As the number of fantasy sports players continues to rise, hardware manufacturers focus on expanding their offerings, including exploring new avenues such as virtual reality (VR).
North America is a crucial region in the global fantasy sports market due to the region’s high popularity of various sports. Over the years, several vendors such as ESPN, Yahoo, FanDuel, and DraftKings have developed a wide range of fantasy sports offerings in this region. With over 60 million fantasy sports players in North America today, it presents a highly promising market for vendors, given the consistently high demand for fantasy sports contests in the US and Canada. The US, in particular, plays a key role in driving the growth of the fantasy sports business in North America, with the Fantasy Sports & Gaming Association (FSTA) being the primary association representing the interests of fantasy sports vendors catering to the region.
Europe’s fantasy sports market was valued at USD 1.05 billion in 2022, with leading regions including Germany, the UK, France, Italy, and Spain. The demand for fantasy sports in Europe is growing, driven by upgrades and innovative offerings. Western European economies, in particular, exhibit strong demand due to a growing interest in diverse sports categories and the influx of international vendors.
The APAC region is home to highly enthusiastic sports fans, particularly millennials, primarily driven by the millennial population in countries like China and India. For example, China and India collectively have more than 409 million millennials, which is five times more than the US. Millennials represent a significant portion of sports fans and are the target audience for fantasy sports vendors. The APAC region holds immense potential for vendors in the fantasy sports market due to the high demand for sports and games among millennials. Popular sports such as cricket, soccer, and basketball contribute to this demand, and the region boasts major cricket-playing nations like India, Sri Lanka, and Bangladesh. The fantasy sports market in APAC is expected to grow at a CAGR of over 12% during the forecast period.
Initially, Yahoo and ESPN were among the vendors serving the fantasy sports market, but currently, DraftKings and FanDuel dominate the market, particularly in North America. While major revenue generators in the global fantasy sports market include FanDuel, DraftKings, Yahoo, ESPN, and CBS, other vendors like PlayOn, FanTrax, StarsDraft, Dream11, and Sportito are endeavoring to secure a larger industry share in the future. Moreover, vendors operating in the fantasy sports market have numerous opportunities to capitalize on, but they also bear significant responsibilities. One example is adhering to regulatory restrictions in different regions, which impose specific conditions on fantasy sports operators catering to those areas. Non-compliance with these regulations can lead to exclusion from the region. Additionally, when offering these services, companies must ensure compliance with tax policies and other stringent regulations related to player earnings and the company’s winnings, as predetermined before the game.
Key companies profiled in this report include CBS Corporation, DraftKings, FanDuel, Yahoo, ESPN, Ballr, BalleBaazi, Boom Fantasy, Binoba11, Daily Fantasy Cricket, DraftStars, DraftTeam Fantasy Sports, Dream11, Eksab, FanFight, FanMojo, FantasyDraft, Fantrax, HalaPlay, My11Circle, MoneyBall, MyTeam11, PlayON, Sportito, 11Wickets, NFL (National Football League), Gameskraft, PlayerzPot, RotoBash.
Key Questions Answered
What is the current size of the fantasy sports market?
The fantasy sports market globally was valued at USD 6.45 billion in 2022 and is projected to reach USD 12.87 million by 2028.
What is the growth rate of the global fantasy sports market?
The global fantasy sports market is experiencing a compound annual growth rate (CAGR) of 12.19% from 2022 to 2028.
Who are the major players in the global fantasy sports market?
The key players in the global fantasy sports market include CBS Corporation, DraftKings, FanDuel, Yahoo, and ESPN.
What are the emerging trends in the fantasy sports market?
Some of the emerging trends in the fantasy sports market include the increase in the number of worldwide sports events, the growing number of internet users, the development of fantasy sports platforms, a rise in female participation, and the integration of augmented reality (AR) and virtual reality (VR) technologies into fantasy sports.
Which region holds the largest market share in the global fantasy sports market?
As of 2022, North America holds the leading market share in the fantasy sports industry, accounting for 68.34% of the total market.