~ Press Release ~
Over 81 million North Americans now participate
in legal sports wagering and fantasy sports
Exclusive study also reveals significant migration from offshore betting to regulated markets, consolidation and maturation in DFS, sports betting markets
CLEVELAND – Research conducted by Angus Reid Group for the Fantasy Sports & Gaming Association (FSGA) revealed another year of significant growth in both legal sports wagering and fantasy sports participation.
According to the study, unveiled during the FSGA Summer Conference at The Ritz-Carlton, Cleveland, legal sports wagering and fantasy sports are engaged by more than 81 million adults across the U.S. and Canada. In the U.S., this represents a 7% increase in total bettors/players since 2022 and 26% growth compared to 2021, illustrating that any losses experienced in the industry due to COVID have been erased.
There has been a lower level of crossover between consumers participating in both fantasy and betting. In the U.S., exclusive fantasy players increased from 13% to 21% year-over year (YoY), exclusive bettors increased from 28% to 34% YoY, while the crossover audience decreased from 59% to 45% YoY. These changes indicate that consumers are becoming more discerning, increasing the importance of companies to better understand their players and to provide the right types of games based on their players’ interests.
The study also indicated that existing bettors continue to migrate from offshore accounts to regulated ones, with the percentage of sports bettors using offshore accounts dropping 48% YoY in legal markets and those using in-person bookies being cut in half.
Meanwhile, there was an estimated $102 billion of handle/entry fees across legal sports wagering, fantasy sports, and affiliated ancillary services over the last year. Specifically for fantasy, there was a 60% growth in entry fees from 2017 to 2023, up to $11.5B, an important finding suggesting that not only has the industry stabilized but that players are more engaged – attitudinally, behaviorally, and financially.
In addition to spending on entry fees, roughly 60% of fantasy sports players and sports bettors pay for either live sports packages or premium content, averaging $119 per year for fantasy players and $129 per year for sports bettors.
“We’re at an incredibly exciting time in the legal sports betting and fantasy sports industry, as we continue to see strong growth in both markets,” said FSGA Research Committee Chair Daniel Haight. “It’s especially great to see the decrease in offshore betting activity as regulated sports betting continues to launch across the U.S., providing consumers safer, regulated alternatives that provide necessary responsible gaming guardrails.”
Other findings included:
- While there are signs of consolidation within the Daily Fantasy Sports (DFS) space, it is clear that DFS players are very engaged. Roughly 60% of DFS players that play a specific sport, engage with that sport weekly or more often.
- The consolidation seen in the DFS space is even more evident in the sports betting space, which is further evidence of market maturation. 66% of bettors claim their primary betting platform as one of the two most popular operators. This suggests the importance of retention within the universe, rather than acquisition from outside the fold.
- Fantasy sports play is down in Canada due to the emergence of legalized sports wagering as well as Ontario’s implementation of unsustainable paid fantasy regulations.
- Sports bettors and fantasy players continue to skew younger males, which makes them a very valuable customer base, particularly from the partnership perspective.
- With market maturation/consolidation, the new battle is now over making players’ and bettors’ lives easier when using the platform. Investing in user experience (UX) will be a key for companies moving forward.
“Thank you to the Research Committee and Angus Reid Group for all the hard work gathering and analyzing this data,” said FSGA Chair Brandon Loeschner. “The future continues to look bright for our industry. The results will certainly help our members grow and improve their companies.”
Methodology
The study was conducted in two phases. Phase 1 was from May 3-5, 2023, among a representative sample of n=2020 online Americans and n=2012 online Canadians who are members of the Angus Reid Forum. Phase 2 was from May 4-16, 2023, among a representative sample of n=1811 online Americans who have participated in either fantasy sports or sports betting in the past 12 months and are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/- 2.2 percentage points, 19 times out of 20 for Phase 1, and +/- 2.3 percentage points, 19 times out of 20 for Phase 2.
About FSGA
The Fantasy Sports & Gaming Association is the only national organization representing the interests of fantasy sports and gaming companies. We are the voice for nearly 60 million fantasy sports players in the United States and Canada, and for the companies that provide services, news, information and competition to support these growing industries. Our members are sports and gaming enthusiasts, with companies that range from small startups to large media corporations. Our mission is to provide our members with essential research and data, networking opportunities and collective action to help them reach their potential. For more information, visit https://thefsga.org.
About Angus Reid Group
The Angus Reid Group is one of North America’s most well-known and trusted online public opinion communities consisting of engaged residents across the U.S. and Canada who answer surveys on topical issues that matter to all. Learn more at https://www.angusreid.com.
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Author: David Keech
David Keech is a retired teacher and works as a sportswriter, sports official and as an educational consultant. He has reported on amateur sports since 2011, known as 'KeechDaVoice.' David can be reached at [email protected]
