Daily Fantasy Sports Market To Reach $5.3 Billion By 2021, Research Group SaysMarket To Double In Less Than Five Years |
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The daily fantasy sports market will double by 2021 to $5.3 billion, according to research published by U.K.-based Juniper Research. The market is currently worth $2.6 billion.
The research came just days after DraftKings and FanDuel, two companies with more than 90 percent of the market, agreed to merge. There were rumors of a merger for several months before a deal was announced. According to Juniper, the closest rival to the combined company is Yahoo.
While the North American market has more than 75 percent of the worldwide DFS market, other countries with gambling industries should drastically grow their DFS markets in the coming years.
“Currently North America dominates the industry with US regulatory loopholes denoting the activity a ‘game of skill’, rather than gambling,” Juniper said. “Nonetheless, with several smaller players in operation globally, and an initial foray into the UK by the industry leaders, West Europe will become the next major market over the coming five years.”
While DFS has been explicitly legalized in about 10 U.S. states, the contests have come under scrutiny by some on Capitol Hill. The federal government is planning to sometime next year take a look at laws pertaining to sports betting and online gaming.
Fantasy sports received a carve out from laws restricting internet casino games.
About 50 million Americans played some form of fantasy sports in 2015, according to the Fantasy Sports Trade Association. Between the U.S. and Canada, the market is worth $26 billion. DFS, which is still in its infancy, is about 10 percent of that.
Companies referenced in the Juniper study include:
888 Sport, Betway, DraftDay, DraftKings, DraftPot, EFL Fantasy Premier League, ESPN, Fanaments, FanDuel, FantasyAces, FantasyBet, FanTeam, Gala Coral, Ladbrokes, Major League Baseball Fantasy Tournament, MondoGoal, Moneyball, Mr Green, Paddy Power Betfair, Starting Five, William Hill and Yahoo Sports Daily Fantasy.
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