The gambling industry is constantly evolving and gambling establishments always have to stay ahead of the curve if they want to continue to do well in the market.
The Global Gaming Expo (G2E) which is scheduled during the 29th Sep – 1st Oct 2015 at the Las Vegas Sands Expo & Convention Center has witnessed a number of key executives sharing insights into new market trends and best practices that has worked well for them.
One of the most interesting topics at the expo was a debate over fantasy sports and whether it should be considered a part of the gambling industry. The fantasy sports industry has gained a lot of momentum during this past year and has attracted a global following.
Eilers Research, a company that specialises in gaming analysis stated that the market is over ten times more lucrative than the iGaming market in the United States and estimated that $3.7 billion will be generated by daily fantasy sports entry fees in 2015 and over $17.7 billion before the end of 2020. Two of the most popular fantasy sports betting companies are DraftKings and FanDuel and they reported over $10.9 million and $9.6 million respectively during the first 2 weeks of the NFL season.
DraftKings CEO Jason Robins was present at the G2E breakout session and spoke on how the game was very similar to stock investing or chess requiring a lot of strategy and insight to become a winner.
Robins stated that his company was attracting a strong player base that were between the ages of 21 to 35 who were very analytical in their thinking and wanted a lot of data and research available before they placed their bets. In a statement, Robins said
It’s important for us to retain customers and create a fun experience. They do their homework.
It’s like the stock market. They enjoy looking at something and trying to figure out something that someone else doesn’t see.
Eilers Research stated that DraftKings spent around $224 million in marketing and promotional activities this year which roughly works out to around $190 to acquire one new customer and FanDuel has invested around $97 million in its marketing campaign which works out to around $110 for the acquisition of one new customer.
American Gaming Association CEO Geoff Freeman who was also present at the expo was very interested in the fantasy sports betting market stating that if it is classified as gambling then the casino industry needs to get involved and starting offering fantasy sports betting and start bringing in revenue.