Juniper Research released a new study that predicts that the consumer spends on daily fantasy sports will increase from $2.6 billion this year to nearly $5.3 billion by 2021.
The organization also anticipates that the merger DraftKings and Fanduel is imminent. These are two of the companies that were referenced in the study and currently represent a combined market share of 90%.
North America will continue to dominate the industry with the United States regulatory loopholes, which are denoting the activity a game of skill, rather than gaming. In fact, over than 75% of the worldwide Daily Fantasy Sports market comes from the USA, and approximately 50 million Americans participated in some form of fantasy sports during last year.
However, given both DraftKings and Fanduel have made an initial foray into West Europe as well as the United Kingdom. This is set to become the next major market worldwide over the following five years. This will most likely happen despite all concerns over the guaranteed prize pools and constraints, alongside issues with the professional athletes.
Lauren Foye, who is the author of the research stated that Fanduel and DraftKings had used aggressive strategies, which gave rise to accusations of false ads and concerns about cost overruns. She continued saying that both they and the players will need to defeat the suggestions that only 10% of professional gamblers win the cash prizes that are being offered.
The research claims that concerns can be addressed through private leagues, in which the users will compete with their friends. This will essentially remove the issue surrounding the professional players. Meanwhile, the providers will attract more casual gamblers which will be playing for smaller prize pools. This will alleviate most of the concerns, which surround liquidity.