The Fantasy Sports & Gaming Association in a new study said the number of adults in those countries engaged in legal sports wagering and fantasy sports has surpassed 81 million, up 7% from a year ago and up 26% compared to 2021.

The research is good news for major entities such as DraftKings and Caesars still posting fiscal losses from sports betting and seeking consistent profits through an enlarged gaming market — an effort also boosted with recent legalization in North Carolina. Flutter Entertainment is similarly projecting full-year profitability for FanDuel in 2023.

“There’s unquestionably a market maturation happening with more regular bettors and more established patterns of activity,” said FSGA board member Paul Charchian to Front Office Sports.

The study also found decreasing crossover between sports bettors and fantasy players, with the level of those doing both the U.S. falling from 59% to 45% year-over-year as consumers become more discerning about their preferred games.

Big Player Losses

ProFootballTalk reported an undisclosed NFL player lost $8 million from betting last year, underscoring excessive wagering’s risks. NFL players are allowed to bet on sports aside from the NFL itself. 

The report adds to recent gambling policy violations by five NFL players, including four from the Detroit Lions, and a separate investigation into Indianapolis kick returner/defensive back Isaiah Rodgers.

FSGA Study

Research conducted by Angus Reid Group for the Fantasy Sports & Gaming Association (FSGA) revealed another year of significant growth in both legal sports wagering and fantasy sports participation. Over 81 million North Americans now participate in legal sports wagering and fantasy sports and there has been a significant migration from offshore betting to regulated markets, consolidation and maturation in DFS, sports betting markets.

According to the exclusive study, unveiled during the FSGA Summer Conference at The Ritz-Carlton, Cleveland, legal sports wagering and fantasy sports are engaged by more than 81 million adults across the U.S. and Canada. In the U.S., this represents a 7% increase in total bettors/players since 2022 and 26% growth compared to 2021, illustrating that any losses experienced in the industry due to COVID have been erased.

There has been a lower level of crossover between consumers participating in both fantasy and betting. In the U.S., exclusive fantasy players increased from 13% to 21% year-over year (YoY), exclusive bettors increased from 28% to 34% YoY, while the crossover audience decreased from 59% to 45% YoY. These changes indicate that consumers are becoming more discerning, increasing the importance of companies to better understand their players and to provide the right types of games based on their players’ interests. 

The study also indicated that existing bettors continue to migrate from offshore accounts to regulated ones, with the percentage of sports bettors using offshore accounts dropping 48% YoY in legal markets and those using in-person bookies being cut in half.