Sports betting and fantasy sports are two of the fastest growing segments in the sports entertainment industry. As sports betting becomes legalized across more states, and fantasy sports continue to explode in popularity, these two activities are intersecting in new and interesting ways. This article will explore how the rise of sports betting is impacting fantasy sports participation and strategy.
The Legalization of Sports Betting
For decades, legal sports betting in the U.S. was limited to Nevada. But in 2018, the Supreme Court overturned a federal law that prohibited sports betting in other states. Since then, over 30 states have legalized and regulated sports betting, with more expected to follow suit.
This rapid expansion has led to a booming new sports betting industry. According to the American Gaming Association, over $57 billion was wagered legally on sports in 2021, generating over $4.3 billion in revenue. As more states legalize sports betting, these numbers are projected to grow significantly.
The Growth of Fantasy Sports
Parallel to the rise of legal sports betting is the meteoric growth of fantasy sports. Fantasy sports are virtual games where participants assemble rosters of real-life players to compete based on those players’ statistical performances. While fantasy sports existed prior to the internet era, the ability to play online against friends and strangers led to an explosion in popularity.
Industry analysts estimate there are now over 60 million fantasy sports players in the U.S. and Canada. The vast majority play fantasy football, although fantasy basketball, baseball, hockey, and other sports also have loyal participant bases. Fantasy sports is now a $18 billion dollar industry annually.
Impact on Fantasy Sports Strategy
For seasoned fantasy players, the proliferation of legal sports betting provides new factors to consider when drafting teams, setting lineups, and managing rosters throughout the season. Understanding betting odds and where the “smart money” is being wagered can give savvy fantasy managers an edge.
For example, let’s say Player A is projected to score 15 fantasy points per NFL game this season. But sportsbooks have set the over/under on his touchdown total at just 8.5 for the season. This suggests oddsmakers expect him to either get injured or underperform expectations. A fantasy manager may steer clear of Player A in their draft and look for better values as a result.
Conversely, suppose Player B is projected for just 12 points a game this year. But oddsmakers have set his touchdown total over/under at 18.5, expecting a breakout season. Fantasy managers may grab Player B a round earlier than his projections would normally warrant.
In essence, betting market data has become an extra analytical tool for fantasy players. Understanding the perspectives of professional oddsmakers can help guide draft, lineup, waiver, and trade decisions over the course of a season.
Impact on Sports Betting
While the rise of fantasy sports impacts strategy for seasoned fantasy players, the inverse is also true. With sports betting expanding, fantasy sports participation can inform betting strategies for savvy sports gamblers.
In daily fantasy sports contests, participants draft a new team every week. The players who consistently win use data and analytics to project which players are most likely to overperform their salaries and scoring projections on a given week.
Sports bettors can mimic these strategies to spot advantageous betting opportunities. If a usually mediocre running back is projected to get 20+ touches this week due to injuries ahead of him on the depth chart, he may be worth a bet to score a touchdown at long odds. Savvy sports bettors pay attention to the same trends and data points that drive daily fantasy strategy.
Additionally, fantasy sports provide a season-long track record of how players perform against certain opponents, in certain game environments, after long rests, etc. Analyzing these trends through a fantasy lens can uncover betting angles that may get overlooked by bookmakers. There are many synergies between fantasy sports strategy and sports betting that mutually benefit both spheres.
Features of Fantasy Sports and Sports Betting: Comparasion
| Fantasy Sports | Sports Betting |
|---|---|
| Participants draft teams of real athletes | Bettors wager money on game outcomes |
| Winning depends on athletes’ statistical production | Winning depends on accuracy in predicting outcomes |
| Played across an entire season | Bets settled in one game or match |
| Generally lower financial stakes | Higher financial stakes per bet |
| Legal nationwide | Legal status varies by state |
A Symbiotic Relationship
While sports betting and fantasy sports offer different experiences to users, the two activities have formed a symbiotic relationship as they rise in popularity. With each sector benefiting from insights and trends percolating in the other, that symbiosis appears likely to strengthen over time.
Fantasy sports players will get savvier in how they use sportsbook information to guide their fantasy strategy. Sports bettors will increase their reliance on fantasy analytics to capitalize on betting opportunities. Media companies will cater content, analysis, and products to audiences participating heavily in both realms.
This intersection has and will continue to be a boon to both industries. Fantasy sports provides a legal, nationwide pipeline of potential new sports betting customers as legalization spreads state-by-state. Meanwhile, the growth of sports betting drives further interest in fantasy play as users embrace analyzing games from a wagering perspective.
To sum up, the explosive growth of legal sports betting in the U.S. is transforming how fans interact with and analyze sports. One significant impact is how sports betting trends and data are now influencing fantasy sports strategy. Likewise, learnings from fantasy sports participation are informing approaches to sports betting.
This intersection has enriched both spheres, demonstrating the unique synergies between fantasy play and sports wagering. As sports betting continues to expand across the U.S., these connections will deepen and unlock new innovations and opportunities in the world of sports entertainment.