The global fantasy sports market is on a trajectory for exciting growth, with the industry set to surpass $62.58 billion in size by 2029. This growth is fueled mainly by the growing popularity of mobile games and the introduction of new technologies, including blockchain and Web3 innovations. Technology startups and established industry players are investing in this space, thus enhancing the user experience and introducing new potential revenue streams for the industry and fans.
While mobile gaming’s convenience and accessibility are expected to propel the industry to further growth, integrating Web3 technologies will truly revolutionise the industry. Blockchain technology introduces concepts like decentralised ownership, verifiable scarcity, and transparency of transactions, which are all essential in a successful fantasy sports gaming experience. These are expected to reshape how fans engage with their favourite sports.
How Web3 plays a part in enhancing engagement
Traditional fantasy sports platforms often leave users with limited control over their in-game assets, typically tied to the platform itself. Web3 changes this paradigm through non-fungible tokens (NFTs), digital representations of digital or real-world items that players genuinely own. These can be players, teams, stadiums, or even memorable moments from matches that can all be bought, sold, and traded across marketplaces.
This unlocks new economic opportunities, as NFTs can appreciate based on rarity, player performance, or historical significance of the events relevant to the asset. Web3 also opens the doors to innovative gameplay experiences and reward mechanisms powered by smart contracts to ensure the transparency and integrity of how digital ownership is managed.
Current trends in fantasy sports gaming
Fantasy sports go beyond gaming. It is more of a social experience and accelerated by online communities powered by social media, which become vibrant hubs for fans to connect, share strategies, and compete against one another. “The proliferation of digital technologies, including smartphones and high-speed internet, has made it easier for fans to participate in fantasy sports and track their teams in real-time,” states an industry report published by SkyQuest.
Here are some of the trends shaping fantasy sports gaming:
Creating mobile apps
The near-ubiquitous availability of smartphones and mobile internet has revolutionised the entire gaming industry, and fantasy sports gaming is no exception. Mobile is the biggest contributor to growth, and mobile apps typically provide 1.5 times faster performance than web-based counterparts. The mobile-first approach is the strategy that GameOn has embraced, designing its platform with intuitive navigation, quick match-based gameplay sessions, and real-time updates.
Community-based engagement
Fantasy sports gaming platforms are now regarded as spaces where users can interact with each other and the platform’s development team. This enhances the overall gaming experience but can also help foster loyalty and long-term engagement with the brand. Other social features, like in-app chats, leaderboards, and forums, can establish a sense of belonging for the community’s users.
Web3 technology
Integrating Web3 into fantasy sports gaming platforms is seen as the defining trend in the industry, as it enables players and communities to leverage asset ownership. For instance, gaming platforms such as Chillz offer a way for users to utilise“fan tokens” for their favourite sports teams, giving them access to exclusive experiences like voting rights on certain team decisions. Meanwhile, NBA Top Shot, which was built on the Flow blockchain, lets users trade and collect officially licensed NBA highlight clips as NFTs.
Such examples demonstrate how blockchain tech opens new avenues for participation and engagement. These trends will increase the economic value of fantasy sports, gaming, and communities. “Blockchain is not only disrupting sports tech, but it is also igniting a renaissance in fan engagement as a participatory and rewarding experience. Some of the key areas where this revolution is taking place include tokenized ticketing, dynamic pricing for new revenue streams, and athlete contracts as liquid markets,” says Nadir Chaudhry, Chief Executive Officer of TENAMINT.
Strategic partnerships lead to innovations
Fantasy sports gaming platforms’ unique blend of mobile accessibility, community building, and Web3 integration is also attracting significant interest and partnership from both the sports industry and companies engaged in Web3 solutions.
GameOn credits its success to strategic partnerships and alliances with companies that matter. For instance, this includes LaLiga, one of the world’s biggest football leagues, with a €4.89 billion total recurring income in the 2022/2023 season. GameOn is launching immersive fantasy games that involve renowned football clubs like Real Madrid and Barcelona. This partnership taps into LaLiga’s significant global fanbase and elevates the fantasy sports experience by interfacing it directly with real-world matches.
Another notable partnership is with the Professional Fighter’s League (PFL), a global powerhouse in mixed martial arts (MMA) and the fastest-growing sports league worldwide. The league also has a primetime airing on ESPN, streamed in 150 countries with 20 premium media distribution partners. This collaboration allows fans to draft their favourite fighters like Jake Paul and Francis Ngannou and compete based on their real-life performances.
Yet another example of a strategic partnership GameOn has established is with Karate Combat, which includes launching a branded NFT collection and fantasy games powered by the $KARATE token. In April 2023, Karate Combat announced its $18 million fundraise from investors including BITKRAFT Ventures, Delphi Digital, The Operating Group, Alpha Wave Global, Hashkey, among others
The mobile-first fantasy sports company is also partnered with OpenSea, the largest NFT marketplace, ensuring its NFTs have a vast market for potential traders. Such a collaboration will be crucial to ensuring a thriving marketplace for digital assets, thus also driving user engagement within the platform’s ecosystem.
The future of fantasy sports games
As blockchain technology matures and becomes more user-friendly, its adoption in fantasy sports gaming will accelerate. NFTs will continue to play a pivotal role, with fans enjoying digital collectables and keeping connected with the sports they love. In the future, this will involve newer features and use cases, such as player-owned teams, tokenised gameplay highlights, and virtual stadiums.
This means fantasy sports platforms will gradually break down geographic boundaries, creating better connections with fans worldwide. Integrating blockchain technology and fantasy sports will also establish strategic global partnerships with gaming platforms, technology providers, and sports leagues.
The future of fantasy sports is not just about predicting outcomes; it’s about owning the game, shaping its future, and connecting with a global community of passionate fans.
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