Daily Fantasy Sports Bigger Than Nevada Sports Wagering by 2016, Research Firm Predicts
Eilers Research made some bold predictions for the future of daily fantasy sports at the Fantasy Sports Trade Association Winter Conference, saying that DFS could pull ahead of sports wagering in Nevada within two years.
The presentation from Eilers Research — a research firm “focused on servicing the gaming equipment, technology, and interactive gaming sectors within the global gaming industry” — was the keynote address of the FSTA conference, given by Adam Krejcik, Managing Director of Digital & Interactive Gaming. The presentation focused on the possibility of huge growth in the DFS market and the possibility of sites other than the industry giants — FanDuel and DraftKings — gaining traction.
Krejcik’s presentation also asserted that DFS could be a “new disruptive online consumer technology industry,” noting that it is a new way to watch sports, that it creates an engaged audience via mobile devices and social media, and that it provides instant gratification. That status would mean large-scale growth could be on tap in the coming years.
Krejcik made made some very bold predictions for DFS moving forward. The biggest was that entry fees for daily fantasy sports would exceed the total amount of bets at sportsbooks in all of Nevada by 2016. If that comes to fruition, that would be a massive leap for the DFS market. Here is a graph of where those two markets currently sit in terms of wagers and entry fees, respectively, followed by predicted graph of activity, from the Eilers presentation:
Here are some of Eilers’ other big predictions:
–FanDuel will go public in 2016, with entry fees over $2.5 billion.
–The NFL will enter into a partnership with FanDuel and DraftKings.
–TV ratings for DFS tournaments will take off by 2017, and will get better ratings than the World Series of Poker.
–NBA TV viewership will spike in 2018, helped by DFS.
–DFS is currently available in just 45 states — but not in Arizona, Iowa, Louisiana, Montana or Washington. All those states will allow DFS wagering within the next five years.
–Overlays and the huge skill gap between DFS pros/grinders and casual players will mostly disappear after this year.
–The DFS industry is likely to face a major public relations fiasco within the next year and a half.
–There will be some consolidation in the DFS market — a possible merge between FanDuel and DraftKings, smaller sites being swallowed up those two companies, or the acquisition of one or both of those sites by a third party. ESPN and Yahoo! are the most likely companies to start their own DFS sites or acquire an existing site.
Krejcik also said that FanDuel and DraftKings account for 96% of the DFS market share, but that those two companies’ marketing push is helping to raise awareness of DFS, which should help create a “spillover” market for other DFS sites.
Some other interesting notes and takeaways from the presentation:
–Keyword searches for “FanDuel” and “DraftKings” have surged in the past year. But searches on Google for “Yahoo Fantasy Football” still outstrip the searches for any DFS site, which shows both the relative lack of penetration for DFS sites and the room there is for growth.
–FanDuel could enter the top 100 most popular websites in the United States in terms of page views as soon as this year.
–FanDuel was the ninth-most downloaded app for iPhones, while DraftKings was 12th.
You can read the entire presentation here.