Daily Fantasy Sports: The Future of US Sports Wagering?

Wednesday October 22,2014 : WHITE PAPER ON DAILY FANTASY SPORTS

Eilers Research examines a burgeoning sector of the market.

Respected online gambling researcher and analyst Adam Krejcik of Eilers Research has published an in-depth 24-page white paper titled: "Daily Fantasy Sports: The Future of US Sports Wagering?"

The report takes a comprehensive look at the financial health of the burgeoning Daily Fantasy Sports market, as well as an analysis of the competitive landscape and expected industry growth through 2020. Additionally, the report explores the potential convergence of Daily Fantasy Sports and the land-based casino industry, as well as some of the similarities it shares with the Online Poker industry.

The report notes: "Fantasy Sports has become a cultural phenomenon in the US and has helped propel the NFL to unprecedented ratings and record revenues. While Fantasy Sports is not a new industry, the Daily Fantasy Sports (DFS) market still appears to be in its infancy and has found a way to tap into a large, growing, and social/mobile engaged audience. The consumer appeal of DFS largely stems from the instant gratification it provides – a theme that resonates strongly across many new popular consumer verticals.

"In terms of the market size, DFS is still a relatively small industry. However, the growth trajectory has been astounding and our estimates suggest player spending (i.e. total entry fees) on DFS sites will likely exceed the total amount wagered annually on sports in Las Vegas by CY15 and all of Nevada by CY16. While the long-term opportunity is compelling, user acquisition costs have been skyrocketing and the two major players in the market (FanDuel & DraftKings) are both entirely dependent upon Venture Capital financing."

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