Online fantasy sports, since their emergence in the 1990s, have become a popular leisure activity in America. The industry is currently thriving, with the number of fantasy sports players in the U.S. and Canada nearly doubling from 32 million to more than 62 million in the past ten years.
A major contributor to this surge is Daily Fantasy Sports (DFS). Our everyday competitions—including the assembly of lineups and competition based on athlete data across multiple statistical areas—has elevated PrizePicks to the status of the leading paid-fantasy-sports provider in the nation. In this NFL season alone, we have gained nearly 250,000 new members, and our highly active community continues to expand.
However, rapid growth often attracts competition. We are up against formidable challenges from established fantasy sports companies, and we promise our users that we will persistently respond with continuous innovation. The methods of enjoying sport, consuming entertainment, and fostering community are evolving—anticipated to be more multi-screen, mobile-friendly, and conveniently tailored to suit our increasingly busy lives.
Without innovations like DFS, the fantasy sports sector would likely stagnate. The inception of modern fantasy sports began in the 1980s with a group of baseball enthusiasts. The emergence of the internet in the 1990s led major online companies like Yahoo! and ESPN to bring fantasy sports online. Then, in the 2010s, dynamic startups like DraftKings and FanDuel transformed the industry further with the introduction of DFS.
Unfortunately, the former pioneers of DFS—now a comfortable duopoly—are primarily focusing on enhancing the profit margins of online casinos and sports betting. This common predicament for many innovators-cum-leaders befalls them: why strive for innovation when they’re already at the pinnacle?
While temporarily lucrative, this doesn’t benefit fans. Advancing the industry requires fresh ideas, including innovative game concepts, responsible play guidelines, and contemporary consumer protection measures.
In terms of responsible play, as we develop contests innovatively, we also need to ensure our industry positively impacts fans’ lives. In March, PrizePicks raised the minimum member age from the industry standard of 18 to 19. We also allow self-imposed limits by fans on their daily, weekly or monthly entry totals, and offer the “self-exclude” feature which locks their account and blocks all marketing updates. Acknowledging that this is not a race but a journey, we recognize the need for further progress.
A significant priority is to revamp the current inconsistent state legislation and regulation. Fans rightfully expect their favorite fantasy sports competitions to remain legal and accessible. Policymakers also have valid inquiries about DFS, and we are open to these discussions, understanding the necessity for legal clarity for our members.
Relying on antiquated models of fantasy sports from a decade ago as future reference hinders the attraction of new fans, stifles innovation, and reduces the collective value we bring to the community members we serve.
Aligning policy with the rapid growth of DFS isn’t an easy task. But the industry is ready for the challenge because this is about preserving the core of fantasy sports. Our continuous focus on innovation and catering to fan requirements is what gave life to this industry decades ago and will continue to drive our future success.
