Online Fantasy Gaming Market Size, Share & Trends Analysis Report By Type (Mobile games, Pay-to-Play games, Free-to-Play games, Pay-in-Play games), By Age group (Young Adults, Adults, Senior Adults), By Platform Type (Smartphone, PC, Tablet) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global online fantasy gaming market size was valued at USD 74.4 billion in 2023 and is projected to reach a value of USD 419.9 billion by 2032, registering a CAGR of 21.2% during the forecast period (2024-2032). The growth of the Online Fantasy Gaming Market is driven by rising consumer awareness of interactive entertainment systems, rising smartphone penetration, and rising disposable income.

Online Fantasy Gaming refers to a virtual gaming environment in which players create and manage fantasy sports teams made up of real players from various sports. Participants, also known as managers, form their teams based on the statistical performance of actual athletes in real-world sporting events. 

The Global Online Fantasy Gaming Market share is a dynamic and rapidly expanding online gaming industry segment driven by an increased interest in sports, technological advancements, and global accessibility. Participants form virtual teams of real players from various sports and compete in fantasy leagues and contests. The market includes multiple sports, such as football, cricket, basketball, and soccer, providing users with a diverse and interactive gaming experience. Real-time integration of sports data, mobile gaming applications, and partnerships with professional sports leagues all help to boost the industry's popularity. Challenges include regulatory considerations and intense competition, whereas opportunities include innovation, global expansion, and the incorporation of emerging technologies such as virtual reality, which will shape the future landscape of online fantasy gaming.

Highlights

Free-to-play games account for the largest share of the market based on type.

Young Adults influenced the market growth based on age group.

Smartphones generate the highest revenue share of the market by platform type.

Market Dynamics

Global Online Fantasy Gaming Market Drivers

Rising Smartphone Usage and Internet Penetration

The widespread adoption of smartphones and improved internet connectivity drive growth in the Global Online Fantasy Gaming Market. The accessibility and convenience of smartphones, combined with reliable internet connections, have transformed the online gaming landscape, making fantasy sports more engaging and accessible to a larger audience. 

Furthermore, improved and affordable internet connectivity, such as the expansion of 4G and the introduction of 5G networks, ensures that users can enjoy uninterrupted online fantasy gaming. This connectivity allows real-time updates, live streaming, and instant contest participation. According to the GSMA, more than 30 countries will begin offering 5G services in 2023. The Asia-Pacific region has some of the fastest-growing 5G markets today, with India expected to add tens of millions of 5G connections by 2023. By the end of 2030, Asia Pacific will have approximately 1.4 billion 5G connections, accounting for 41% of all mobile connections. 

Furthermore, online fantasy gaming platforms have adapted to mobile interfaces, providing intuitive and optimized applications. These mobile apps offer a smooth and immersive gaming experience, allowing users to navigate features with ease and efficiency. In 2023, mobile games earned USD81 billion in revenue across both platforms. In 2023, iOS generated USD47.7 billion in revenue, compared to USD33.3 billion for Google Play. In addition, Chinese gamers spent the most money on mobile games in 2023, accounting for 34% of total consumer spending.

Users with smartphones and reliable internet access can receive real-time updates on player performance, match statistics, and league standings. This real-time engagement improves the gaming experience and keeps users active in the fantasy sports ecosystem. The ongoing evolution of mobile gaming experiences is expected to bolster the online fantasy gaming market trend.

Global Online Fantasy Gaming Market Restraints

Regulatory Uncertainties

The regulatory landscape for online fantasy gaming is diverse and constantly changing, creating uncertainty for market players. Regulations vary significantly between jurisdictions, ranging from supportive frameworks to restrictive measures or legal ambiguities. In the United States, the legality of online fantasy sports varies by state. Some states have embraced and regulated the industry, while others continue imposing restrictions or waiting for clearer legislative guidelines. The legal status of an activity is frequently determined by whether it is classified as a game of skill or chance. For example, as of May 2023, 45 US states had legalized daily fantasy sports (DFS) to varying degrees. As of January 30, 2024, FanDuel's fantasy sports section was legal in 44 states but not Connecticut, Hawaii, Idaho, Montana, Nevada, or Washington. 

As of December 2023, China's gaming regulator has announced new rules to limit how much money gamers spend on video games. China's gaming regulator has tightened regulations on the world's largest digital gaming industry, limiting in-game purchases and compulsive playing behavior. These include a ban on rewards for frequent log-ins, forced player duels, and removing any content that violates state secrets.

Similarly, In 2023, The Indian government issued regulations governing the online gaming industry, prohibiting games that involve wagering or betting with real money. Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, announced that the government would establish three self-regulatory organizations (SROs) to approve games that meet the country's operating rules.

As a result, regulatory uncertainty may cause online fantasy gaming platforms to hesitate to enter or expand into new markets. Legal ambiguities may necessitate extensive compliance efforts, legal consultations, and adaptation to changing regulatory frameworks, limiting market growth potential.

Global Online Fantasy Gaming Market Opportunity

Integration of Esports and Niche Sports

Incorporating esports and niche sports into fantasy gaming platforms provides an opportunity for diversification and targeting a larger audience. Esports, in particular, have a rapidly growing fan base, creating engagement and monetization opportunities.

 Fantasy gaming platforms can create dedicated fantasy leagues for popular esports games like League of Legends, Dota 2, and Counter-Strike: Global Offensive. Users can create virtual teams of professional esports players and earn points for their in-game performances. In 2023, the global eSports audience is expected to reach 574 million, with 283 million core enthusiasts and 291 million occasional viewers. This demonstrates the growing popularity of esports. 

Furthermore, Platforms can explore collaborations with organizations that promote niche sports that may not be as popular but have devoted followers. This could include sports such as lacrosse, beach volleyball, or extreme sports, giving fans fantasy gaming experiences tailored to their preferences. Integrating esports and niche sports broadens the demographic reach of fantasy gaming platforms, attracting users who aren't huge fans of traditional sports. Esports fans attract a tech-savvy and digitally engaged audience to the platform.

The continued growth of esports and the diversification of consumer sports interests point to a bright future for platforms that strategically integrate these elements. Fantasy gaming platforms can capitalize on the growing popularity of esports to achieve long-term growth. Exploring partnerships and collaborations with esports organizations and niche sports entities will be critical to capitalize on this opportunity.

Regional Analysis

North America Dominates the Global Market

The global online fantasy gaming market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global online fantasy gaming market shareholder and is estimated to grow at a CAGR of 21.5% over the forecast period. The growth is attributed to the presence of key players in online fantasy gaming, such as Fun Technologies, Playdom, and Arkadium, among others. Furthermore, the increasing popularity of various entertainment options among the region's young population is one of the factors driving market growth. gam

Furthermore, early technology adoption in the region to improve the consumer experience supports market growth. Again, increasing penetration of online fantasy gaming on social media platforms raises awareness among youth, which boosts market growth in the region. In January 2024, bet365, a global sports betting company, announced a partnership with Scout Gaming Group, a fantasy sports provider, to launch a free-to-play product called "Daily Lineups" in North America. 

Additionally, Canada has a significant gaming industry. Canada's gaming industry is diverse, from online gambling to fantasy football and multiplayer first-person shooter games. Several key factors have contributed to the growth of the Canadian fantasy gaming market, including technological advancements, consumer preferences for new products, shifts in public perception, and innovation. This has increased interest from international companies looking to establish a strong presence in Canada. 

Asia-Pacific is anticipated to exhibit a CAGR of 21.9% over the forecast period. The expansion is attributed to rising internet connectivity and smartphone penetration in developing countries such as China, India, and Indonesia. Furthermore, the growing popularity of live sporting events in developing countries such as India fuels market growth. For example, the Indian Premier League (IPL) has increased demand for online fantasy gaming in the country, including Dream 11, Fantasy Cricket League, and Cricket 11. Furthermore, increasing disposable income among consumers in developing countries, leading to smartphone adoption, is expected to boost market growth. Additionally, the availability of online gaming in regional languages promotes market growth.

The Europe Online Fantasy Gaming Market is a dynamic and growing segment of the gaming industry. Online fantasy gaming platforms in Europe allow users to participate in various sports leagues, create virtual teams, and compete against one another based on athletes' real-world performances. According to Statista, the United Kingdom has a million gamers in Europe as of February 2024, which is 31.35 million. France ranks second, with 23.63 million users. 

Moreover, in 2023, Northern Europe had the world's highest internet penetration rate, with 97.3% of the population online. Western Europe was the second most connected region, with approximately 93.7% of the population online. This will further drive the regional market.

Segmental Analysis

The global online fantasy gaming market is segmented based on type, age group, and platform type.

The market is further segmented by type into Mobile, Pay-to-Play, Free-to-Play, and Pay-in-Play games.

Free-to-play games account for the largest share of the market.

Free-To-Play Games

Free-to-play games have the largest market share among all segments and are expected to grow during the forecast period. Free-to-play (F2P) games are available to users without initial payment. Revenue is generated through in-game purchases, advertisements, and premium features. This model enables many players to interact with the game for free, with optional microtransactions for virtual goods, character upgrades, or cosmetic items. Free-to-play games frequently focus on creating a compelling and engaging experience to encourage in-game purchases. The growth is attributed to the increasing penetration of smartphones, which provides enthusiasts with remote gaming options. Furthermore, the availability of various genres in free-to-play gaming, such as sports, crime, and Western-style games, drives market growth.

Mobile Games

Mobile games are video games that are designed and optimized to be played on mobile devices like smartphones and tablets. These games are typically downloaded and installed from app stores and come in various genres, such as casual, strategy, and multiplayer. Mobile games have grown in popularity with the widespread use of smartphones due to their accessibility, ease of play, and ability to appeal to a wide range of audiences.

Based on age group, the market is fragmented into Young Adults, Adults, and Senior Adults.

Young Adults influenced the market growth

Young Adults

Young Adults have a higher CAGR and are expected to grow throughout the forecast period. Individuals in this age group are typically in their late teens or early twenties. Young adults are frequently distinguished by their high digital literacy, passion for technology, and preference for social and competitive gaming experiences. They will likely engage in various game genres, such as multiplayer online games, esports, and mobile gaming. The increase is due to the growing popularity of online fantasy gaming among young adults worldwide. According to Statista, 65% of online fantasy gamers are aged between 18 and 24. 

Adults

Adults range in age from late twenties to early fifties or older. Adults' gaming preferences can go from casual and social games to immersive single-player experiences. This demographic frequently values games that balance entertainment and time investment, and their preferences may include genres such as action, adventure, simulation, and strategy games.

The market can be further bifurcated by platform type into Smartphone, Tablet, and PC.

Smartphones generate the highest revenue share of the market.

Smartphone

The smartphone segment has a higher CAGR than others and is expected to grow over the forecast period. Smartphone gaming has grown in popularity as mobile devices have become more widely adopted. Smartphones provide a convenient and portable gaming experience, making it available to a broader audience. Mobile games on smartphones range from casual to high-quality, immersive experiences. The touchscreen interface and various sensors increase gameplay diversity, and app stores offer different gaming options. The increase is attributed to the increasing penetration of smartphones worldwide, particularly in developing countries like India, China, and Indonesia. As of 2023, there were 6.93 billion smartphone users worldwide, accounting for approximately 85.68% of the global population. This figure is up from 3.668 billion in 2016. By 2025, smartphone users are expected to reach 7.34 billion.

PC

PC gaming is known for its versatility, allowing players to access various games, from indie titles to high-end, graphics-intensive AAA games. PCs support a variety of gaming genres, such as strategy, simulation, role-playing, and competitive multiplayer games. PC gaming is known for its customization options, the modding community, and the ability to use high-performance hardware to create an immersive gaming environment.

Impact of covid-19

The impact of COVID-19 has a devastating effect on all industry verticals globally. However, online fantasy gaming has witnessed twofold growth during the pandemic COVID-19 on account of stringent government regulations such as; shut down of business operations that include; offices, schools, colleges and universities, cross-border activities, and social distancing norms, among others. This enables young consumers to adopt online fantasy gaming as a free option, thereby increasing demand amid pandemic COVID-19. Also, the opening of real sports events such as football and cricket led to increasing demand for the online fantasy gaming market.

Recent Developments

• October 2023- Microsoft acquired Activision, Blizzard, and King.com. King will continue operating as a separate business within Microsoft Gaming while publishing games it creates.
• February 2024- ONIC PH unveiled its MPL PH Season 13 roster, which includes former Omega Esports and TNC Pro Team players.