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Modern-day technological advancements have changed and transformed several industries. Today, all thanks to digitization, diverse industries are generating billions of dollars every year. No doubt that the cutting edge technology we have today has opened new doors and opportunities. One such industry revolutionized by technology is that of fantasy sports.
Generating revenue from software solutions and mobile applications is the new way of doing business. And the fantasy sports industry is leveraging this fact efficiently. Fantasy sports harnesses the power of digital platforms and enables fans to create their own virtual teams. Once they are done building their teams, bets are made for monetary gains.
So we know how players make monetary gains, but what about the fantasy sports solutions and apps? How do they make money? What is the secret behind fantasy sports app revenue? Before we jump in, let’s take a look at the scope as well as stats of the fantasy sports industry.
Scope of the Fantasy Sports Industry
The advancements in growing internet infrastructure, growing investment opportunities, and increasing popularity among players in diverse sports such as football, cricket, hockey, basketball, volleyball, handball, kabaddi, etc have fueled the growth of the fantasy sports industry.
According to marketwatch.com, in the year 2019, the size of the global market of fantasy sports was 18040 million dollars. By the end of 2026, the market is expected to hit the mark of 43370 million dollars.
Now that we know about the growth and scope of the fantasy sports industry, let’s take a look at all the factors that are contributing to the growth of the fantasy sports industry and fantasy sports revenue.
Factors Contributing to the Growth of the Fantasy Sports Industry and Fantasy Sports Revenue
There are several factors that are shaping the fate of the fantasy sports industry. Let’s take a look at each one of these
Growth of Advertisements and Marketing Schemes
The growth of marketing and advertising strategies as well as enhancements of budgets has boosted the growth of the fantasy sports industry. The growing awareness about the industry has also increased its popularity and has enabled the fantasy sports industry to attract more audiences. This is one of the key reasons why we are seeing several fantasy sports solutions online. This is also one of the driving factors of fantasy sports app revenue.
The fantasy sports industry is observing new partnerships as well as diverse collaborations every single day. In the coming years, these partnerships are expected to multiply.
Enhanced Participation of Millennials
The internet generation that feeds on digitization has contributed immensely to the growth of the fantasy sports industry. Their curiosity, the inclination towards innovation as well as participation has also boosted the growth of the fantasy sports industry, development of fantasy sports software solutions and has hiked up fantasy sports app revenue.
Increased Usage of Smartphones
Today, almost everyone owns a smartphone. The booming smartphone market and new innovations have fueled the growth of fantasy sports applications. This has also influenced how fantasy sports make money.
Rise of Fantasy Platform Development
In the past few years, several fantasy platform development companies have emerged that are providing state-of-the-art solutions. These fantasy sports solutions not only meet the needs of players but also help businesses generate revenue.
How Fantasy Sports Software Solutions and Apps are Making Money
Earnings via Participation Fees
Fantasy sports apps and platforms come with diverse gaming rules which involve participation fees. Platforms like FanDuel as well as DraftKings organize bumper contests with huge payouts and cash-prices. These companies earn their revenues by taking their cut. Most companies charge a 10% commission and most of the money gets spent on the funding of the prizes.
Several brands leverage the power of most downloaded apps to increase their brand awareness as well as recognition. The reason behind doing this is to ensure the message gets delivered to a vast audience. This not only benefits the application or the software solution but also enables fantasy sports apps owners as well as software owners to earn advertising fees and helps them generate revenue. Hence it becomes crucial to create a strong marketing strategy so that the application or the software solution can attract a better user base.
Tactics to Engage Users
Big industry hotshots utilize and introduce new tactics to ensure users stay engaged on the platform. These tactics include introducing new competitions, contests as well as huge prize pools. The winners receive rewards whereas the lost money goes into the pockets of multiple investors.
Multiple Platform Support
There is no doubt that some investors go for hybrid applications to ensure the developed apps run on Android as well as iOS, but to ensure seamless as well as outstanding user experience, investors go for dedicated applications for Android as well as iOS platforms. In addition to this, investors also invest in responsive online fantasy sports websites to ensure users can access the application from their laptop, PC, mobile phones, tablets, etc. Clearly, investors are using multiple ways to hike up their fantasy sports app revenue.
Various Free Leagues
Another great way of making money for fantasy sports apps as well as software solutions is that of free leagues. Several prominent fantasy sports applications as well as software solution owners make use of free leagues to get users to register on their platform. Getting the user to register is one of the massive roadblocks and free leagues enable fantasy sports platform owners to tackle this challenge head-on. Once the deed is done, they start offering diverse extra services to users and lure them into paying for these services. Free leagues are the key to attracting massive new players to the platform, which eventually contributes to generating revenue.
There are diverse as well as several industries that are benefitting from the fantasy sports industry. According to the research, a football fan spends around $500 annually on prizes, entry fees, merchandise, etc. Fantasy sports trading association is responsible for analyzing and keeping a record of diverse factors that benefit the fantasy sports apps and platforms as well as other businesses indirectly.
If a fantasy sports offers a good media value, several sponsors offer cold cash for the promotion. This not only enables brands to reach their target audiences but also enables fantasy sports. Several brands offer services in return. Services like visuals, stats, content as well as certain assets, that help fantasy games as well.
Want to Kickstart your Own Fantasy Sports Platform or App?
GammaStack can help. We at GammaStack provide you unmatched as well as feature-loaded fantasy sports software solutions that come with a plethora of tools and features that help you attract more users, retain old users, and achieve your enterprise goals. In addition to this, we also specialize in providing next-gen as well as comprehensive mobile applications for Android as well as iOS that enable you to engage your users, deliver your outstanding fantasy sports experience and help you accelerate your business success.
Our teams of highly creative as well as visionary designers and proficient developers build cutting edge applications and software solutions that not only meet your needs but exceed your expectations.
Armed with 8+ years of iGaming industry experience, over the years, we have enabled several large as well as small businesses and entrepreneurs to achieve their dreams and build fantasy sports platforms that thrive in the market.
Want to know more about our fantasy sports offerings? Contact us today!