Spending on daily Fantasy sports will reach .3 billion as new markets are opened in the UK, Australia and Latin America, according to a study by the UK’s Juniper Research.
The report, Daily Fantasy Sports: Growth Opportunities & Player Strategies 2016-2021, says that despite revenue constraints, interest in DFS remains high. While North America is currently the main market for DFS players, new markets will open up over the next five years including the UK and Western Europe.
DraftKings and FanDuel, which have just announced a merger, handle over 90 percent of the DFS market. The study anticipated the merger and expects the companies will consolidate their dominance in the market.
The study, however, says the industry does face high player payouts and marketing costs, as well as continued battle in the U.S. over its legality. The industry also has to allay concerns that only very skilled players can win the DFS tournaments.
“DraftKings and FanDuel have used aggressive marketing strategies that gave rise to accusations of false advertising and concerns with cost overruns,” the study said. “Both they and emerging players will need to quell suggestions that only 10% of ‘professional’ players win the monetary prizes on offer.”
