Fantasy Sports: Business Opportunities in Latam

Fantasy Sports is an attractive solution preferred by tech-savvy audiences. It offers gamified opportunities to win great prizes with minimal investment and builds a strong community of users. 

In Latin America, there is still exceptional room for growth in this market, and it is expected to continue growing in the coming years. Many emerging markets do not yet have an established Daily Fantasy Sports (DFS) provider, and therefore, there is great potential at a regional level.

Global & Latin American Markets

The DFS market is continuously growing globally. The fantasy sports market is expected to grow from $32.75 billion in 2024 to $62.58 billion in 2029 at a compound annual growth rate of 13.83%. 

Source: Mordor Intelligence 

Certain sports associations, such as MLB, NFL, EPL, and IPL, have signed exclusive agreements with DFS platforms, making them their official sports betting and fantasy gaming operators. This has resulted in a steady expansion of the association's fan base and exposure. These agreements help integrate DFS into the fan experience and increase participation. 

Sources: El Sol de Mexico

Several sports and entertainment celebrities have invested in DFS platforms, bringing capital, visibility, and credibility to the industry. In addition, major brands such as Google and Disney have also invested in fantasy sports platforms. 

Source: PR Newswire 

DFS products have been introduced in Brazil and Mexico in recent years. Particularly in Brazil, the fantasy sports market has experienced significant growth. According to a study by the Brazilian Fantasy Sports Association (ABFS), the South American market is expected to see growth of up to $2.2 billion by 2027. Brazil plays a key role in this growth, driven by increased smartphone usage, higher purchasing power and many young urban populations. In other countries in the region, while these products are beginning to gain substantial momentum, this modality remains largely untapped, with many countries needing access to such products. 

Sources: PR Newswire and Games Magazine Brazil.

Target Audience

This modality can be an interesting ‘fan engagement’ tool. A gamified DFS solution, similar to what traditional bookmakers offer, captivates younger generations.

In research done by the Cruyff Institute through an online questionnaire distributed to fantasy sports blogs in Europe and North America, most respondents, when asked why they play, answered ‘for fun‘, ‘to win’, or ‘to be more connected with friends’.

The fantasy sports market is segmented by type (soccer, baseball, cricket, basketball, auto racing, etc.), platform (website, mobile app), demographics (under 25, 25-40, and over 40), application (Individual Competition and Team Competition), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).

Source: Mordor Intelligence 

Types of Users

According to researchers Farquhar and Meeds (2007), five types of users can be identified and labelled: 

• Casual gamers; 
• Expert gamers; 
• Isolationist thrill seekers; 
• Sociable;
• Formative.

User types were determined based on participation, consideration, entertainment, study, escape and excitement scores. Casual gamers were described as members who do not ‘spend a lot of time, energy or money participating in fantasy sports.’ Experts are members who are very involved in the fantasy sport and seem to increase their involvement and spend more time and money on the activity. The isolationist thrill seeker claims to win but does not want to invest much time or energy in the effort. The sociable user is engaged by these games' exhilaration, surveillance and social interaction. Finally, the formative ones are described as a ‘complex group to understand’. Motivation, whether by statistics or a love of winning, could be two primary factors in participation. 

Players motivated by excitement sought the ‘thrill of victory‘ [] (Farquhar & Meeds, 2007, p1212) and believed that the next victory was ‘just around the corner‘ (p. 1212). Players motivated by study and training are interested in ‘gathering information, working with statistics, and staying in touch with real-world sports‘ (Farquhar & Meeds, 2007, p1212). 

Source: Ruhley, J. (2010). The fantasy sport experience: motivations, satisfaction, and future intentions (Doctoral dissertation, University of Tennessee, Knoxville). Trace: Tennessee creative research and exchange. Retrieved from: Trace Tennessee Research and Creative Exchange 

Why are DFS So Attractive?

The appealing aspects of this game modality are:

• Big Prizes

Users could win significant prizes with a small investment. Unlike traditional betting, DFS offers the possibility of obtaining large winnings without great risks.

• Speed & Retention

Traditional fantasy sports often experience drop-off rates as the season progresses. DFS' quick turnaround counters this trend, as selections are made for each group independently.

• User Engagement

DFS is a hub for various sports content, including news articles and video highlights.

• Gamification

Distinguished from traditional bookmakers by their unique approach, gamification involves using game design elements in non-game contexts to enhance user engagement and experience. In DFS, this includes implementing point systems, rankings, prizes and rewards, and creating challenges and quests.

• Community

In DFS, the individual performance of the players matters more than the overall outcome of the match. This creates a deeper connection with the selected players and a greater interest in the game itself. The gaming experience is deeper and more immersive than traditional sports betting. In addition, valuable data about players, their preferences, and behaviour can be obtained, which can be used to improve the user experience, personalise offers, and conduct more effective marketing campaigns. 

The goal is to diversify the platform in a way that will make it stand out and differentiate it from the competition. Providing entertainment of this type for new users and those already playing in other modalities keeps players engaged for a longer period of time. Not only that, but many users who use this modality are very interested in meeting new people, so new forms of social bonding and entertainment are a must.

Source: El Sol de Mexico

Tailor-Made Solution: WA.Fantasy

WA.Fantasy offers a fully customisable fantasy sports platform. It creates a sleek and interactive lobby, visual highlights for team announcements, match start reminders and the ability to create a wide variety of categories and leagues.

• Single (team vs. team) or multi-game fantasy games.
• User-created private game rooms.
• Configurable points systems.
• Global player leaderboards.
• Player and match statistics.
• Real-time leaderboard and scoreboard updates. 
• Promotional codes, cash bonuses and referral rewards.

How Does WA.Fantasy Work?

1. Users receive a credit limit of 100 to build their virtual fantasy team.
2. Player costs are calculated using the WA.Technology model, with the goal of introducing a level of constraint that encourages diverse and nuanced team selections.
3.  Each fantasy player's credit value is determined by factors such as his historical performance and upcoming opponents.
4. Upon completion of all matches, users with the highest points earned from their fantasy teams are eligible to receive awards from the respective groups they entered.

Fantasy games, including WA.Fantasy’s extensive offerings, provide an exciting and immersive experience for sports enthusiasts by allowing them to build and manage their virtual teams. WA.Fantasy, in particular, stands out with its customisable platform, providing users with various game modes, real-time updates, and a competitive environment that enhances the engagement and enjoyment of fantasy sports. As a tailored solution, WA.Fantasy is designed to meet the specific needs of users, making it an ideal choice for those looking to capitalise on the growing fantasy sports market in Latin America.

Disclaimer: This article has been provided by Latam Entertainment for informational purposes and does not necessarily reflect the views of WA.Technology. Investments in any market, including Latam, should be made after thoroughly analysing and understanding local regulatory and market conditions.

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