The Daily Fantasy sports industry has grown at such an alarming rate in the past couple of years that it even has industry experts second guessing their initial calculations. The announcement came from Forbes that Fanduel was adjusting their 2014 yearly revenue projections upwards of $10 million dollars from what was $40 million in early June to close to $50 million with us not even being half way through the NFL season yet. It shows our industry experiencing growth beyond even our wildest imaginations. And many are now stopping to ask,
Where are we headed?That is the exciting question that we are now living in. With the marketing campaigns that the two major sites are putting on, dumping money into promoting and growing the daily fantasy sports industry, has drawn many new players this NFL season. Sometimes it makes it difficult to see the Forest through the Trees. Even though Fanduel has released their financial information to the general public, that only projects for the 2014 year. The real exciting potential lies in 2015 and beyond. Yet next to no one has any information as to what sort of projections are even realistic for the daily fantasy sports industry unless you want to pony up $1,000 to Eilers Research. It is easy to imagine however based on the year over year growth that FanDuel has experienced that we could be looking at them raking in over $175 Million dollars in 2015. And this projection may still be on the low end as the actual FanDuel Revenue reported for this year has not come out yet. But if we average out the year over year growth thatFanDuel has experienced from 2011 to the end of 2014 on a quarterly level and project that out to 2015 we would right now be barely scratching the surface of the potential we have in this daily fantasy sports industry.
The numbers that I used can be found below to extrapolate that graph based off of the information FanDuel has already reported and projecting the average growth out into 2015. One of a few things is bound to happen:
- DFS hits a period of stagnation where the growth of daily fantasy sports levels off at current levels
- DFS hits a bubble that drastically and dramatically inflates the growth of daily fantasy for a short extreme time before some new form of legalization and or regulation happens and pops the bubble
- DFS continues to grow at a consistent rate and reachs the projection levels that Industry insiders are outlining
Whichever one happens we are currently in exciting and unknown times in the daily fantasy sports industry. Something of a crossroads is nearing after this NFL season. Will it continue to grow or tail off as other flash in the pan industries have done? Only time will tell.
Period Revenue Q1 2011 $135,360 Q2 2011 $231,371 Q3 2011 $254,547 Q4 2011 $530,693 Q1 2012 $558,509 Q2 2012 $873,137 Q3 2012 $1,045,457 Q4 2012 $2,480,867 Q1 2013 $1,811,783 Q2 2013 $2,411,626 Q3 2013 $2,623,388 Q4 2013 $7,411,137 Q1 2014 $5,376,644 Q2 2014 $6,176,910 Q3 2014 $8,894,423 Q4 2014 $29,552,023 Q1 2015 $13,895,483 Q2 2015 $18,730,621 Q3 2015 $29,668,483 Q4 2015 $114,756,429