DFS SPEND TO DOUBLE BY 2021 SAYS JUNIPER
Margins to exceed online casino providers by 4X.
The latest study from analyst firm Juniper Research says customer spend on Daily Fantasy Sports (DFS) will double by 2021 to $5.3 billion, while margins are expected to reach over four times those of traditional online casino providers.
Other key points from the Juniper Research detail:
– Key players will seek to develop new markets including the UK, Australia and Latin America.
– After North America, West Europe will become the next major market during the coming 5 years.
– While DraftKings and FanDuel already represent over 90 percent of the DFS market, their consolidation will “dwarf” their closest rival Yahoo, the report reads.
From a different angle, author of the report, Lauren Foye revealed that the research argued “pay-outs on guaranteed prize pools, sometimes worth millions of dollars, significantly constrain providers that may already have invested heavily in high-profile advertising campaigns”.
In addition, “DraftKings and FanDuel have used aggressive marketing strategies that gave rise to accusations of false advertising and concerns with cost overruns,” Foye said. “Both they and emerging players will need to quell suggestions that only 10% of professional players win the monetary prizes on offer."
The research opines that concerns could be addressed through private leagues, where users compete with friends, essentially removing the issue surrounding pro-players.