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US DFS market has hit peak Draftkings & FanDuel penetration

A report issued by the research firm focused on servicing the gaming equipment, technology, and interactive gaming sectors, Eilers & Krejcik Gaming, outlined that the global salary-cap daily fantasy sports (DFS) market may have been completely tapped into by DraftKings and FanDuel.

Throughout 2017, of the estimated $3.26 billion the industry received in entry fees around 97% of it was collected by FanDuel or DraftKings.

The report emphasised that: “It’s difficult to imagine a customer that DraftKings or FanDuel didn’t reach in the last three years.

“International expansion may provide room for minor incremental growth, and there’s always a number of customers who weren’t legally able to play real-money DFS last year due to age restrictions that can now, but those sources aren’t anywhere near enough to get the two companies back on the growth track.”

Looking ahead the report, which aims to outline a forecast for the DFS industry through 2020 added: “Their best bet is to reactivate the roughly 85% of customers they’ve already acquired and then lost (i.e., churned). We expect not only a marketing focus on reactivation (not that the companies haven’t been trying already) but also a product focus designed to draw inactive players back into the fold (e.g., games like Super Bowl bingo from FanDuel).”

Furthermore, with the US Supreme Court considering opening the doors for states to allow their own legislation with regards to sports betting, the DFS industry may be faced with a wave of players questioning the financial benefits of playing fantasy sports as opposed to a traditional sportsbook offering.

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