The fantasy sports market is expanding all over the world. The industry is projected to be worth $48.6 billion in 2027. It is one of the sectors expected to lead the way in the future of iGaming.
Contrary to popular belief, the fantasy market is not uniform and generates almost equally uneven speculation. The European fantasy sports market is described as thriving, but many investors are most interested in the, relatively untapped, Indian market. Gia Janashvili of Veli. Group says the company has been looking for a partner in the Indian Fantasy Sports market for some time and has recently announced a partnership with Fan2Play, an Indian provider of Fantasy sports contests.
The Global Fantasy Sports Market
Because determinants are dynamic, the trajectory of a product or service
normally plateaus and plummets. The fantasy sports market is an example of a rare occurrence. Thanks to the COVID-19 black swan, the last half-decade has been an all-time high for this arguably unique sector.
The Fantasy Premier League received over 9 million entries from over 170 countries in 2021 alone. The industry is now worth approximately US$22 billion, up from US$18.6 billion in 2019. These figures pale in comparison to the projected US$48.6 billion in 2027.
The enormous figures represent the overall growth potential. However, we cannot ignore the fact that some cultures are more welcoming of sports, while others lack the opportunity to demonstrate their enthusiasm for the same. For example, due to the large number and expertise of vendors operating in the region, North America was at the forefront in 2020. People’s high affinity for fantasy sports and technological advancement in the region also played a critical role in awarding North America 68 percent of total fantasy sports revenue.
The European Fantasy Sports Market
The North American market is more closely replicated in Europe than in most other regions. The European fantasy sports market accounted for more than 16 percent of total revenue in 2020. Over the years, the continent has quickly risen through the gaming ranks, particularly the Western European economies. Like North America, Europe also saw an unexpected influx of major gaming vendors. FanTeam Daily Fantasy & Betting is an example of a vendor who took Europe by storm.
Europe also attributes the growth in its fantasy sports market to the continent’s preference for a wide range of sports. Fantasy football is the most popular on the continent accounting for 78% of all fantasy sports players. However, the continent also has a large number of fans of other fantasy sports, such as fantasy baseball, basketball, American football, tennis, cricket, and ice hockey. The massive sponsorship of mainstream sports in Europe by large corporations such as Barclays, Hublot, and Nike has also popularized fantasy sports, creating a dynamic sports environment across the continent.
Why are Investors Interested in India?
North America and Europe are the largest fantasy sports markets, with 68 percent and 16 percent revenue contributions, respectively. However, the figures are about to change due to the growth rates of other regions.
The potential of India particularly piques the interest of interested investors. The market is expanding faster than the majority of other countries in its tier. Some experts believe that if India’s fantasy market conditions and enabling factors matched those of North America and Europe, it would have long hoisted the Asian flag in this sector.
One of the pillars supporting the growth of India’s fantasy sports market is the spread of high-speed internet. In 2018, India had 560 million internet users. In 2020, the figure was around 639 million, and it is expected to be much higher in 2022. The country attributes this rise to the widespread availability of low-cost smartphones as well as the rapid increase in data speeds and decline in data prices. The increasing millennial population has also contributed to an increase in internet users.
Some investors are drawn to India because of the large number of ardent sports fans looking for new products. Gaming operators are increasing their investments in the country’s fantasy sports market by offering innovative offerings that meet the needs of the country’s audience and fans. Some leverage the power of B2B2C partnerships because local businesses are more familiar with Indian tastes and preferences. One of the foreign companies that have used this strategy to gain access to the secluded market is Veli Group.
Unlike Europe, India has a relatively pristine technology market. Technology innovators, internet service providers, and other tech-related businesses are flocking to India to take advantage of the opportunities presented by the country’s transition into the digital era. Fantasy sports investors see the shift as an opportunity to get a foothold in the country’s expanding tech market. Overall, India has a greater potential for growth than Europe’s nearly saturated fantasy sports market.