The fantasy sports industry has seen tremendous growth over the last few months following the COVID 19 pandemic. As people began to adapt to the ‘new normal,’ online activities became the only alternative. The growing online participation has paved ways for massive adoption, more so for Fantasy sports.
Reportedly, over the last few years, fantasy football has grown into a $7 billion industry that has given birth to various online gaming.
Recent reports by Messari indicate that sports are primed for mass adoption as blockchain-based applications boost fan engagement. The report by Mason Nystrom explains that while the Fantasy sports industry waits for emerging technologies and 5G connectivity, blockchain-based fantasy sports prove to be a game-changer for the industry. With large indoors gathering canceled due to the pandemic, the industry has been working on ways to keep fans entertained. The last months have seen project managers create a competitive sporting environment for fans at the comfort of their homes.
Where it all began
Fantasy sports began with small gatherings in living rooms, basements, and bars among friends and families. Private leagues, usually by invite only become more popular at the time. With time as the community grew, public leagues emerged. This has made it possible for anyone to participate. Public leagues entail playing against the internet populations. In this case, the chances of winning are significantly slimmer compared to the private leagues.
In North America, Fantasy Sports grew from an estimated 32 million players in the US and Canada in 2010 to 59.3 million in 2017. Within the US alone, the number of Fantasy Sports players has grown from 42 million in 2015 to 45.9 million in 2019.
According to Nystrom, in the next three to five years, the fantasy and betting industry is expected to grow by about 7.2%. There are already numerous blockchain-based projects, including FootballCoin, Fund Fantasy, Skrilla, and many more.
Benefits of Blockchain in the Fantasy sports industry
Blockchain has with no doubt improved the sporting experience among e-sport players. Keeping information on the blockchain has ensured complete transparency and trust. For instance, fantasy sports modules can be linked with smart contracts. This helps in the fair execution of the processes like scoring rules, winner determination, and much more. It ensures that individuals cannot tamper with the scoring parameters by the fantasy sports platform operator itself.
All the financial transactions like entry fees and winnings withdrawal can be done using cryptocurrencies like Bitcoin, Ethereum, and Litecoin, among others.