New independent assessment points to slower growth and smaller prize pools
The independent researcher Eilers & Krejcik Gaming has released its latest examination of the daily fantasy sports industry, noting that the phenomenal growth rates of preceding years are unlikely to continue and that previous forecasts will have to be revised.
The report cites a variety of factors currently impacting the DFS sector, including the obvious hurdles put in place in recent years by enforcement actions, legislative developments in a range of US states and new regulatory demands.
Over the past year E & K analysts estimate that the sector grew by around 4 percent, reaching around $3.5 billion in stakes, but revenue increased out of proportion to that, growing 15 percent year-on-year.
The report includes an interesting series of graphics illustrating former progress and three other scenarios affected by new developments.
E & K forward-looking estimates of a $5 billion p.a. market by 2020 are apparently shared by other analysts. The report acknowledges the importance of market leaders DraftKings and FanDuel, and the possible impact of their much-publicised plans to merge.
Eilers calls the planned merger a "clear net positive," and speculates on what the merged entity may look like, how much firepower it could develop, and what anti-trust hurdles may lie ahead, but this is hypothetical if educated musing. He surmises that regulators will come to recognise that blocking the merger will likely result in one, and perhaps both,companies failing, an undesirable outcome in any terms.
The report notes that the two market leaders are already making changes to their product offering which include an apparent move away from massive competitions in favour of smaller contests with lower prize pools and less hype. There is also an increased focus on social-gaming style DFS contests.
Online Casino News Courtesy of Infopowa
