What is Fantasy Sports? It’s Explained Here!
What is so special about putting together virtual teams based on real players — and then estimating the performance of those fantasy teams based on how the athletes in real life will do on the field? Exactly my question, so we dig deeper, and here is a post that explains what is fantasy sport and how it will work and all.
It started as a fun game played between friends. But today it’s a multi-billion dollar business with real influence in the real world, live sports. Many of the same company interests involved in pro-sports have seen on the fantasy bandwagon (Time Warner has invested in FanDuel one of the greatest and biggest daily fantasy sports companies).
How do fantasy sports work?
Fans pick from real players in an online picking process, or a draft, to collect the best fantasy team. The players’ real-game statistics are collected and analyzed to see which fantasy team has done the best everything is virtual in this process.
Players also keep a check on players and how their fantasy team is doing using different websites or mobile apps. Some players enter into leagues with friends and play against only people they know. Others join open for all public leagues hosted by websites and play against strangers.
Who actually plays?
About 56 million people play fantasy sports in North America. 10 million of those players are teenagers because it attracts big bucks. About 19% of adult men play fantasy sports, opposed to 9% of women, according to surveys STATS Inc.
And more prosperous fans are more likely to play: 16% of people who earn $50,000 or more play fantasy sports, while just 10% of people who earn less than $50,000 will come out and play, so it is like a game for people who are well set.
About $18 billion is spent on fantasy sports per year. If you compare it, $140 billion is wagered on real sports and just $70 billion is spent on buying lottery tickets.
Is this legal?
Yes, it is. The Unlawful Internet Gambling Enforcement Act, which Congress enacted in 2006, clearly says fantasy sports are permitted under federal law because they are classified as a game of skill instead of a game that relies on chance and luck. The only caution is that players may not bet on the result of a single game or on a single player.
But five states banned the fantasy sports — Louisiana, Arizona, Iowa, Montana, and Washington. The Fantasy Sports Trade Association is requesting to change the laws in those states as well, will see what will happen in the future but for now, it remains banned.
Are there regulations on it?
Right now there is no government body that keeps a check and balance on fantasy sports, the way gambling regulators oversee sports betting in the state of Nevada.
The recent scandal which involves companies like DraftKings and FanDuel could bring calls for bigger government oversight of the sports industry, if not calls for a complete ban.
Fantasy sports how big the business is?
Huge. Overall, the industry produces about $1.5 billion a year in revenue. The greatest part of that income comes from advertising on the sites. Sites pay out more than 90% of the fees they receive as prize money in line to bring more players to the game itself.
Many of the influential media and Internet companies such as Disney’s () ESPN unit, Yahoo (YHOO), and CBS ( ) have grown into major players in the fantasy sports business.
The fastest-growing section of fantasy sports?
Sites are growing rapidly by offering so-called daily tournaments, where players can choose a team for only one day, or if they are playing football, one week.
Fantasy sports groups battled over the same span of time as the real sports league that they followed. But such leagues can be time-consuming to play and you have to patient and spin a lot of numbers in order to win.