There’s no debating the fact that the daily fantasy sports market is growing at a rapid clip.
We’ve created a simple calculator so that you can tinker with the basic variables (explanations below) to fashion your own projections for the DFS market through 2020.
This variable expresses how many unique users will participate in real-money DFS during the course of a given year.
This variable refers to the total amount an average player spends in entry fees over the course of the year.
Note that this is not how much revenue a player generates for a site. It’s their total spend on entry fees, which are then split into money that goes to prize pools and rake.
For FanDuel in 4Q14, this number was ~$366.
The rake variable refers to what average percentage of the total entry fees generated operators will keep as the fee for hosting the game.
For FanDuel in 4Q14, this number was ~10%.
The compound annual growth rate (CAGR) for unique active players from now through 2020.
This variable more or less expresses what “smoothed” growth rate the industry will see over time in terms of consumer penetration.
Same as above but for the average amount a player spends in entry fees.