Ron Mendelson is the Director of Costa-Rica based International Business & Corporate Services consultancy firm, Fast Offshore. With over 24 years of real-world experience in iGaming Licensing and Payments, Regulatory Compliance, Tax-Efficient Corporate Structuring, Incubator and other Hedge Fund Licenses, Blockchain and Cryptocurrency related services, he advises a number of international clients on their business needs in the Americas, Europe, and beyond.
Online gambling entrepreneurs can often overlook fantasy sports, but it is, in fact, one of the most interesting of the emerging markets. Over the last couple of years, Fast Offshore has seen increased inquiries for fantasy sports betting sites and apps. Here are four reasons why we consider it's a good idea to move into fantasy sports in 2022 is a good idea.
Online gambling growth
The online gambling sector has been on an upward trajectory for many years, but this has accelerated over 18-20 months. Powered by the pandemic and the ongoing digital transition, it is expected to bring in over $127 billion a year by the end of 2026. With a CAGR of over 12%, it is sustainable and long-term profitable for investors. Within the online gambling sector, fantasy sports is one of several verticals that is garnering more interest from operators and players alike.
Increased fantasy sports interest
In 1988, there were some 5 million fantasy sports players. That number has grown to over 56 million in just North America, and this figure continues to rise. More and more players are becoming interested in fantasy sports, including all demographics. A sharp acceleration in interest started during the first months of the COVID-19 pandemic. In early 2020, most sporting events shut down or were postponed due to lockdowns. Even now, at the end of 2021, some sports are still operating under restrictions. This was a big problem for sports fans and sports bettors who were suddenly without a form of entertainment. This is the moment fantasy sports came into its own.
The sector was valued at $18.6 billion at the end of 2019 but will surpass $48.6 billion by 2027. This demonstrates a CAGR of almost 14% over the next five years. The most popular segment within fantasy sports is football (soccer), but we expect to see other areas emerge as fantasy sports become more popular.
If you start a fantasy sports betting site, you can also offer other gambling products. Likely, many of your customers will also be interested in sports betting, eSports betting, and even casino games. The opportunity to cross-sell and increase revenue is significant and will create added customer loyalty. The more options you can offer your players under your brand, the more likely they will stick with you instead of looking elsewhere.
Remember that fantasy sports fans tend to be younger than your average slots or table games player, so be sure that what you offer meets their expectations.
The regulation of fantasy sports
Some confuse fantasy sports with illegal betting, but fantasy sports are often regulated with other forms of gambling. If you are licensed in a reputable jurisdiction like Kahnawake, Malta, or the Isle of Man, you can provide fantasy sports on your platform. If you want clarity on whether fantasy sports are included in your licenses jurisdiction, Fast Offshore are happy to advise.
If you are licensed and offer fantasy sports on your site, you will also be able to partner with a verified payment processor. These gateways are secure and help to build confidence with users. Adhering to regulations, including fair gambling policies and other forms of compliance, will also increase consumer confidence leading to more players and more betting activity.
Over the years, Fast Offshore has worked with many operators looking to set up sports betting sites or incorporate them into their existing platforms. Through our team of highly experienced professionals, we can assist with company incorporation, structuring, payments, and of course, licensing. Once your gambling company is set up, we can take care of compliance and all ongoing matters, leaving you to run your business. If you are interested in expanding into fantasy sports, Fast Offshore is here to help. Contact us today to discuss your options.