Daily Fantasy Sports Market Overview
Daily Fantasy Sports Market Size was estimated at 10.62 (USD Billion) in 2022. The Daily Fantasy Sports Market Industry is expected to grow from 11.44(USD Billion) in 2023 to 22.3 (USD Billion) by 2032. The Daily Fantasy Sports Market CAGR (growth rate) is expected to be around 7.7% during the forecast period (2024 - 2032).
Key Daily Fantasy Sports Market Trends Highlighted
The Daily Fantasy Sports (DFS) market is witnessing a rise in popularity, driven by the increasing adoption of mobile devices and the availability of high-speed internet. The growing popularity of sports betting and the surge in online gaming have further fueled the growth of the DFS industry. DFS platforms offer users the opportunity to create virtual teams and compete against others for real money, which enhances the excitement and engagement of fans. Key market drivers include the increasing accessibility and convenience of mobile DFS platforms, the growing popularity of esports, and the legalization of sports betting in various jurisdictions. The emergence of new technologies, such as artificial intelligence and machine learning, is also expected to revolutionize the DFS landscape by providing more personalized and data-driven insights to users. Opportunities for growth lie in the expansion into new markets, the development of innovative game format, and the integration with other forms of entertainment. The market is also expected to benefit from the growing adoption of DFS by traditional sports leagues, which could further enhance the legitimacy and popularity of the industry. By understanding these trends, companies can position themselves to capture the emerging opportunities and drive the continued growth of the Daily Fantasy Sports market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Daily Fantasy Sports Market Drivers
Rising Popularity of Sports Betting and Gambling
Sports betting and gambling became major driving forces, that contributed greatly to the expansion of the Daily Fantasy Sports Market Industry with legalization of their execution in multiple areas. The tendency to legalize these activities has led to increased recognition and acceptance. More and more people have started to participate in daily fantasy sports, aiming for a good source of entertainment and money. The availability of multiple platforms, with the majority of them functioning on mobile devices, appeals to a broader scale of customers.
This popularity is anticipated to persist in the future and will continue driving market expansion.
Technological Advancements and Data Analytics
Advancements in technology have also had a major effect on the way players engage with daily fantasy sports. The technology, which can be described as a combination of data analytics as well as machine learning and artificial intelligence integration has improved how players approach daily fantasy sports. It provides more data-based insights into player performance in addition to analyzing team dynamics or using historical data. Simultaneously, the improved availability and utilization of precise data helped players react to any changes in real-time.
Growing Smartphone Penetration and Mobile Gaming
Smartphones have surged in number over the years on a global scale, and many people are now using mobiles for daily fantasy sports because there is nothing as convenient as a screen you can take everywhere and whip out when you need to quickly come up with a winning combination in fantasy sports. Various mobile phone applications dedicated to sports have been developed, and the platforms take no time to load and use fresh interfaces targeted at those who use them.Looking ahead, as technology continues to grow in the mobile sector, more engagements will follow, and more features will be integrated to help offer a better fantasy gaming experience.
Daily Fantasy Sports Market Segment Insights
Daily Fantasy Sports Market Type Insights
The Daily Fantasy Sports Market is segmented by Type into Salary Cap, Snake Draft, and Points-Per-Dollar. Salary Cap is the most popular type of DFS, accounting for over 60% of the market revenue in 2023. In Salary Cap, each player is assigned a salary, and users must build a team of players that fits within a predetermined salary cap. Snake Draft is the second most popular type of DFS, accounting for over 25% of the market revenue in 2023. In Snake Draft, users take turns selecting players for their team, with the order of selection reversing each round.
Points-Per-Dollar is the third most popular type of DFS, accounting for over 15% of the market revenue in 2023. In Points-Per-Dollar users earn points for each statistical accomplishment by their players and user with the most points at the end of the contest wins. The Salary Cap segment is expected to continue to dominate the market over the forecast period, with a CAGR of 8.2%. The growth of the Salary Cap segment is attributed to the increasing popularity of DFS contests that use a salary cap format. The Snake Draft segment is expected to grow at a CAGR of 7.5% over the forecast period. The growth of the Snake Draft segment is attributed to the increasing popularity of DFS contests that use a snake draft format. The Points-Per-Dollar segment is expected to grow at a CAGR of 6.8% over the forecast period.
The growth of the market is attributed to the increasing popularity of DFS contests, the growing number of DFS players, and the increasing number of DFS operators.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Daily Fantasy Sports Market Customization Insights
The customization segment is a key driver of growth in the Daily Fantasy Sports Market. The increasing popularity of customized competitions is attributed to the rising demand for personalized gaming experiences. Public competitions often have a large number of participants, which can make it difficult for players to win. Private competitions allow players to compete against their friends or family members in a more controlled environment. Customized competitions offer the flexibility to create competitions with specific rules and settings, which can appeal to a wider range of players.
For example, players can create competitions with different entry fees, prize pools and scoring systems. As a result, the customization segment is expected to witness significant growth in the coming years.
Daily Fantasy Sports Market Sport Insights
The Daily Fantasy Sports Market is segmented into various sports, including Football, Basketball, Baseball, Soccer, Hockey, and Mixed Martial Arts. Among these segments, Football dominates the market, accounting for over 40% of the global revenue in 2023. The popularity of Football in regions like North America and Europe, coupled with the presence of well-established leagues and tournaments, drives the growth of this segment. Basketball and Baseball follow Football in terms of market share, with Basketball expected to witness significant growth in the coming years due to its rising popularity in emerging markets.Soccer, Hockey, and Mixed Martial Arts also contribute to the market, with Soccer gaining traction in regions like Europe and Latin America. The market growth for each segment is influenced by factors such as the number of participants, the frequency of events, and the availability of platforms offering Daily Fantasy Sports contests.
Daily Fantasy Sports Market Platform Insights
The Daily Fantasy Sports Market is segmented by Platform into Web-Based and Mobile-Based. The Web-Based segment held the largest market share in 2023, accounting for over 60% of the global market revenue. The Mobile-Based segment is expected to grow at a faster CAGR during the forecast period, owing to the increasing penetration of smartphones and the growing popularity of mobile gaming. In 2023, the Web-Based segment was valued at around USD 7.5 billion, and it is projected to reach USD 12.6 billion by 2032, growing at a CAGR of 7.2%. The Mobile-Based segment was valued at around USD 4.8 billion in 2023, and it is expected to reach USD 9.7 billion by 2032, growing at a CAGR of 8.1%.The growth of the Mobile-Based segment is attributed to the increasing adoption of mobile devices for gaming, the convenience of playing fantasy sports on the go, and the growing number of mobile-based fantasy sports apps. Furthermore, the increasing availability of high-speed internet and the advancements in mobile technology are expected to further drive the growth of the Mobile-Based segment.
Daily Fantasy Sports Market Target Audience Insights
The Daily Fantasy Sports Market segmentation by Target Audience includes Casual Players, Serious Players, and Professional Players. Casual Players represent the largest segment, accounting for over 70% of the market in 2023. These players participate in DFS contests for entertainment and occasional winnings. Serious Players comprise around 20% of the market and engage in DFS more frequently, often with a focus on building their skills and maximizing winnings. Professional Players, though a small segment, exhibit a high level of expertise and compete in DFS as a primary source of income.Their strategies involve extensive research, data analysis, and advanced techniques.
Daily Fantasy Sports Market Regional Insights
The regional segmentation of the Daily Fantasy Sports Market provides insights into the market's geographical distribution and growth potential. North America is expected to dominate the market, accounting for a significant share of the Daily Fantasy Sports Market revenue in 2023. The region's large population base, high disposable income, and widespread adoption of online gaming contribute to its dominance. Europe is another key region in the Daily Fantasy Sports Market, driven by the growing popularity of sports betting and the presence of established fantasy sports platforms.The Asia-Pacific (APAC) region is projected to witness substantial growth in the coming years, fueled by the rising popularity of fantasy sports and the increasing internet penetration in countries like India and China. South America, the Middle East, and Africa (MEA) regions are expected to contribute a smaller share of the overall market, but they offer growth opportunities due to the increasing interest in fantasy sports and the development of local platforms.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Daily Fantasy Sports Market Key Players And Competitive Insights
The Daily Fantasy Sports Market industry is a high-competition market with several established players with significant market shares. Some of the major players in the Daily Fantasy Sports Market include DraftKings, FanDuel, Yahoo, and BetMGM. The major leading companies provide a range of daily fantasy sports contests for a broad range of sports, including Football, Baseball, Basketball, and hockey. The competitive landscape of the Daily Fantasy Sports industry is primarily concentrated on the intense rivalry among the leading players, illustrating a competition faced by all the major competitors. In an analysis by Market Realist, since competition is at the top among the leading companies, each of the companies invests a significant amount in marketing and player acquisition strategies to increase the number of users.As per the analysis performed in the class, one of the leading competitors in the Daily Fantasy Sports Market is DraftKings. DraftKings is headquartered in Boston, Massachusetts, and is a premier, U.S.-based digital sports entertainment and gaming company. The company is a leading provider of online daily fantasy sports contests, providing a wide range of daily fantasy sports games covering Football, Baseball, Basketball, hockey, and golf. The company is widely popular among users and is widely known for its user-friendly website and broad daily fantasy sports contest range. DraftKings offers a wide range of bonuses and promotions to its users as a strategy to increase the user base. The company has a large user base and has entered into several partnerships with major media, fans, and sports leagues to expand and differentiate its products.The other leading Daily Fantasy Sports Market competitor is FanDuel; FanDuel is based in New York, New York. Similar to that of DraftKings, FanDuel is also a major leading provider of daily fantasy sports contests and fans in larger numbers. The company offers a broad range of daily fantasy sports games, including Football, Baseball, Basketball, hockey, and gold. The company enforces a strategy to separate the general competition by forming partnerships with celebrities, icons, and media to diversify the market share.
Key Companies in the Daily Fantasy Sports Market Include
- PrizePicks
- PlayerzPot
- Boom Fantasy
- Sleeper
- FanTeam
- FanDuel
- Fantasy Aces
- SuperDraft
- DraftKings
- FortunePlay
- PlayersBest
- Draftster
- Underdog Fantasy
- Monkey Knife Fight
- Yahoo! DFS
Daily Fantasy Sports Market Industry Developments
The global Daily Fantasy Sports (DFS) market is projected to reach USD 22.3 billion by 2032, exhibiting a CAGR of 7.7% from 2023 to 2032. The rising popularity of online gaming, increasing internet penetration, and growing smartphone adoption drive market growth. Key recent developments include DraftKings' acquisition of Golden Nugget Online Gaming, FanDuel's launch of its sportsbook in Ontario, Canada, and BetMGM's partnership with the NHL. These developments indicate the industry's continued expansion and consolidation.
Daily Fantasy Sports Market Segmentation Insights
- Daily Fantasy Sports Market Type Outlook
- Salary Cap
- Snake Draft
- Points-Per-Dollar
- Daily Fantasy Sports Market Customization Outlook
- Public Competitions
- Private Competitions
- Customized Competitions
- Daily Fantasy Sports Market Sport Outlook
- Football
- Basketball
- Baseball
- Soccer
- Hockey
- Mixed Martial Arts
- Daily Fantasy Sports Market Platform Outlook
- Daily Fantasy Sports Market Target Audience Outlook
- Casual Players
- Serious Players
- Professional Players
| Report Attribute/Metric |
Details |
| Market Size 2022 |
10.62(USD Billion) |
| Market Size 2023 |
11.44(USD Billion) |
| Market Size 2032 |
22.3(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
7.7% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
PrizePicks, PlayerzPot, Boom Fantasy, Sleeper, FanTeam, FanDuel, Fantasy Aces, SuperDraft, DraftKings, FortunePlay, PlayersBest, Draftster, Underdog Fantasy, Monkey Knife Fight, Yahoo! DFS |
| Segments Covered |
Type, Customization, Sport, Platform, Target Audience, Regional |
| Key Market Opportunities |
Increasing Mobile Penetration Legalization in New Jurisdictions Expansion into Emerging Markets Growing Female Audience CrossPlatform Integration |
| Key Market Dynamics |
1 Rising popularity of online gaming and mobile devices2 Increasing disposable income and recreational spending3 Growing demand for personalized and immersive gaming experiences4 Legalization and regulation of daily fantasy sports in various regions5 Emergence of new technologies such as artificial intelligence AI and virtual reality VR |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Daily Fantasy Sports market is projected to be valued at USD 11.44 billion in 2023, exhibiting a steady growth trajectory.
The market is anticipated to expand at a CAGR of 7.7% from 2024 to 2032, indicating a promising growth outlook.
North America is expected to maintain its dominance in the Daily Fantasy Sports market, driven by established industry players and a large user base.
The rising popularity of online gaming, increasing smartphone penetration, and legalization of sports betting in various jurisdictions are key factors driving the growth of the Daily Fantasy Sports market.
FanDuel, DraftKings, and Yahoo! are among the leading players in the Daily Fantasy Sports market, holding a significant market share.
Daily Fantasy Sports contests come in various formats, including head-to-head, 50/50, and tournaments, each offering varying levels of competition and potential winnings.
The Daily Fantasy Sports industry emphasizes responsible gaming through measures such as age verification, deposit limits, and partnerships with organizations promoting responsible gambling.
Technology plays a crucial role in the Daily Fantasy Sports market, enabling real-time updates, data analytics, and personalized experiences for users.
The Daily Fantasy Sports market is anticipated to witness continued growth, driven by advancements in technology, increasing legalization, and the rise of new markets.
Regulatory complexities, competition from traditional sports betting, and the need to maintain user engagement are among the key challenges faced by the Daily Fantasy Sports industry.
