The daily fantasy sports (DFS) industry is rapidly changing for many political and business reasons. We saw lots of interesting things happen in 2016, and I’m sure we will see even more radical changes in 2017.
Below I list 5 DFS predictions for 2017:
- The DraftKings (DK) and FanDuel (FD) merger won’t be approved by anti-trust regulators. These two companies combined make up approximately 95% of the industry, and so if these two join forces the unified company will hold a monopoly, and many entities such as governments and other competing companies won’t like it. If DK and FD can prove that the whole industry is dependent long-term on this monopoly being formed though however, then we could see the merger upheld. It will likely happen eventually, but maybe not in 2017 if legislation drags on.
- A good percentage of DFS users will get more serious about their research process, and how they place their bets and manage bankrolls. A high percentage of users have been reluctant to pay for DFS specific products, but if the entry losses get too big then an investment into DFS analytics and tools makes sense to increase positive cash flow, and save on research time. Otherwise quitting is an option too. Average users will get more and more sophisticated so the use of technology will play a more prominent role over time.
- Another country is added. So far DK and FD have allowed USA, Canada, and UK visitors to bet and participate. I think that more countries will realize how much they can make in initial and annual fees and taxes, and make deals. My guess is that at least one new European country joins forces with the DFS industry.
- We haven’t really seen it just yet, but I think that we will see ads within our favorite DFS apps and websites. New revenue streams will be established and developed in 2017, and one of them will be ad and sponsorship dollars.
- If the DK and FD merger goes through eventually, then I think the new company will go through an IPO event fairly quickly to become a publicly traded company. If this occurs then I will surely buy some stock as I’m quite bullish on the future of DFS.
If you haven’t already, be sure to get an account on DraftFuel to get access to the player analytics and search tools you need to build better quality lineups more consistently, win more contests and money on DraftKings and FanDuel, save research time, track your spending, and improve your work flow process too. We currently support NBA, NHL, MLB, and PGA, and will be adding more sports leagues this year as well.