Prized running back blow out his knee? Ace starting pitcher staring down the dreaded Tommy John surgery? Problems like these have derailed many the fantasy season for the typical sports fan, usually a precursor to several doomed months of misery and ultimately, a sunk-cost league buy-in.
But the online fantasy mega-sites have a solution – daily leagues with daily payouts and daily deposits. In layman’s terms, it’s fantasy sports written in pencil, not pen. Fantasy managers now have the ability to adjust on the fly, capable of building completely unique teams (for a nominal fee of course) on a continual basis. This format seamlessly aligns with consumers’ increased desire for instant gratification and reduced commitment, and the continuity of transactions is becoming more and more lucrative for the sites themselves.
Accordingly, it’s no surprise that the major players in online fantasy sports are jockeying for position in the $4 billion industry. The latest movement came Tuesday, when Boston-based DraftKings Inc. announced the acquisition of competing site DraftStreet. The terms of the deal were not disclosed, but there’s an expectation that the merger could potentially skyrocket DraftKings profitability, as the company anticipates increasing its existing customer base by over fifty percent. Already ranked as the second and third largest daily sites, Tuesday’s announcement appears to be a key development in the suddenly fiercely competitive fantasy sports market.
“There’s always an opportunity to do something new and cool with the game inside the game. The companies that continue to innovate and continue to put out great new stuff are going to continue to get attention regardless of whether there’s one or two big players now.” -DraftKings CEO Jason Robins
It remains to be seen if DraftKings can top leading Fan-Duel, a company with a $40 million revenue projection according to Forbes. What does appear clear is that this new format of daily fantasy leagues is the next frontier in the ever-expanding fantasy sports industry. So fantasy sage, the next time that star quarterback you drafted in the first round separates his throwing shoulder, your dreams of fantasy glory evaporating with each second he spends writhing on the turf – there’s no need to fret.
After all, tomorrow is a new day.