In January of 2013, Comcast Ventures invested 11 Million dollars via Series C funding in FanDuel which is regarded as the largest company in the space. Comcast is the well known capital arm of the media and cable conglomerate as well as other firms. Rounding out the lot was Cantor Fitzgerald LP, an investment bank which launched its own daily fantasy sports service, called Cantor Fantasy Sports. Lastly, MGT Capital Investments, a publicly-traded patent holding company, purchased a 65% stake in FanTD LLC, an operator of Fanthrowdown.com, a new company in the industry for approximately $200,000 in cash and about $2.5 million in stock.
What we are actually witnessing is investment funds cautiously getting into the space via established players which further cements its position as a serious contender with online audiences seeking to wager without risk. In addition, the fantasy sports world referred to as ‘Roto’ has had its loyal following for some time now.
Many larger players are also cautiously keeping an eye on the industry such as the major sports leagues and sports broadcasters realized the potential and synergies that can be implemented given the niche and need for updates, stats and news from its players/fan base.
Unlike the purest form of gambling through either Poker, BlackJack of online Slot machines, a successful fantasy sports player will need skill. He will need to know the ‘playing field’ including player stats, injury reports and history. With the onset of daily games the bar is raised even further for a player to shine.
What we do now is that fantasy sports is big business with over 35 million players in North America with the average spending over 450.00 a year. Players are also usually upper middle class with incomes of up over 90,000 annually. We will all keep a watchful eye and enjoy…Play Ball!