Magazine article Phi Kappa Phi Forum

Fantasy Sports Means Real Profit

Magazine article Phi Kappa Phi Forum

Fantasy Sports Means Real Profit

Article excerpt

We live in a virtual world where the Internet brings supply and demand together in ways that bridges and even detours traditional means. Some of these Internet companies, like Alibaba, Facebook and Airbnb, are the fastest growing, according to Tom Goodwin, senior vice president of strategy and innovation at Havas Media.

There are even new breeds of sports companies thriving on the demand for virtual sports and related social media interactions. Just as Ubet, Facebook, Alibaba and Airbnb have become big business, fantasy sports leagues have risen in popularity, size, and profits that rival traditional sports organizations, but, they have no players, coaches, or teams.

The Fantasy Sports Trade Association claims fantasy sports have been around since shortly after World War II, but the landmark development was the Rotisserie League Baseball in 1980. In just 35 years, the industry has grown to $4 billion, according to the group. Fantasy sports also doesn't have to pay out multimillion dollar player contracts, unlike professional leagues like the NFL. The FSTA reported an estimated 51.8 million players in the U.S. and Canada in 2015.

Fantasy sports companies like FanDuel and Draft Kings have also capitalized on the growing demand to bet money daily on sports players and teams. A 2015 Forbes Magazine article focuses on the growing popularity and enormous amount of money that is flowing into Daily Fantasy Sports and illegal sports betting--DraftKings and FanDuel raised over $575 million in combined venture capital in 201 5 and are using these funds to challenge federal and state gambling laws. …

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