Your player hits a huge home run, makes an incredible one-handed catch in the endzone for a touchdown or scores an incredible top-shelf goal after undressing the defender.
While fist-pumping in celebration of winning the matchup, you realize the beads of sweat that dripped down your forehead when drafting your team after hours of research paid off.
For fantasy sports participants, moments like these make all of the hard work worth it.
Fantasy sports leagues are a way for people who enjoy watching sports to feel more involved in the game through making decisions a general manager (GM) would normally make in drafting the ultimate lineup. It’s also a way to increase the stakes on player performance in any given game by waging money to see whose lineup reigns supreme.
Fantasy teams accumulate points based on players’ real-world game performances. At the end of a season or at a predetermined date set by fantasy participants, whichever lineup has the most points wins.
However, the uncertainty of whether or not real-world sports leagues will make a successful return to finish their seasons has experts and fans worried about the risks of owning a fantasy team, and the well-being of the fantasy sports industry.
Due to COVID-19, many sports leagues are postponed or cancelled as a safety measure for athletes and coaching staff. As a result, fantasy sports have also taken a massive financial blow and are in danger of shutting down again if a second wave of COVID-19 strikes.
Short-term pandemic strains
Jeffrey Derevensky of McGill University researches gambling and high-risk behaviours in adolescents. He said the state of fantasy sports this year is bleak.
“[There’s] not much to discuss. Fantasy sports are virtually closed down during the pandemic,” Derevensky said.
While some fantasy leagues saw setbacks due to COVID-19, leagues are still running amid reduced professional seasons.
If fantasy sports shut down because of the looming threat of a second wave of COVID-19—which would cause all professional leagues to stop playing—the fantasy sports companies would lose money and users.
According to Statista, the revenue generated from daily fantasy sports players in Pennsylvania combined about $1 million US in revenue each month from March to August of 2019. Fantasy sports reached peak interest in September to December of 2019—making more than double its summer totals for those four consecutive months when fantasy football, hockey, and basketball were in full swing.
However, in January and February of 2020, revenue started to decline. During the pandemic lockdown from March to June 2020, revenue was less than half of last year’s for the same months. In April—the first full month with no professional sports—revenue reached an all-time low.
Even though these figures reflect fantasy sports in Pennsylvania, fantasy sports enthusiasts all over the world are in the same boat as they all rely on the same players and leagues to assure their fantasy leagues success.
Devon Rutherford, co-founder of Ottawa-based company FanShare Sports, said the pandemic is severely affecting the fantasy sports industry financially.
“Many companies within the fantasy sports industry lost significant revenue over the three-month period (when) operations were ceased,” Rutherford said. “Companies attempted to cut costs by reducing their workforces over this time, as well as cutting any additional operating costs where possible.”
“It is fair to assume businesses operating in the space are seeing significantly reduced revenue as players of fantasy sports have either been affected through job losses due to the pandemic, or are preparing for the possibility,” Rutherford added.
Long-term optimism
Despite the setback the pandemic has caused the industry, Rutherford said he believes the long-term future of fantasy sports is bright.
“Renewed focus due to the legalization of ‘sports betting’ in the United States has brought in new players and a significant amount of well-funded, new startups to the industry,” he said. “The fantasy sports and sports betting industry is poised to see significant future growth with the amount of investment currently happening.”
A big reason for the industry’s growth is the people who play fantasy sports. According to Sensor Tower, ESPN fantasy sports had 60,000 downloads and made $30,000 in revenue during July.
Rutherford said he believes fans are crucial to the growth and development of the industry.
“Fantasy sports is an opportunity to play a game within the game. It provides an outlet and entertainment for participants,” he said. “Fantasy sports provides participants with some distraction from current stresses, as well as an opportunity to develop bonds and friendly competition with new and old friends.”
Rutherford said one of the highlights of fantasy sports is the social chat platforms available for users to connect.
“Many companies, including FanShare, use social chat platforms where their members share ideas, share research, and encourage each other with their respective fantasy lineups,” he said.
The short-term future of fantasy sports might be in danger if leagues shut down again due to the pandemic, but Rutherford and others in the industry have hope that when the leagues return post-pandemic, the sports betting industry will fare just fine.
Fans’ dedication
Despite all the challenges the fantasy sports industry faces, many fans are still engaged.
Elliott Coleman is a second-year history student at the University of Ottawa who has been playing fantasy football for 10 years. He said gambling can be fun if fans proceed with caution.
“If you can control yourself, it’s a great way to bond with friends and to get more involved with sports,” Coleman said. “Fantasy sports might not be for people with gambling problems, as there normally is money on the line.”
Coleman said he believes the success of fantasy leagues depends on when a potential second wave of COVID-19 occurs.
“If a league shuts down before the season, there won’t be any data to work with and so there will be no fantasy sports,” he added. “But if the NFL ends, let’s say after week 10, some leagues will award the money to the first place player at the time. That’s only fair.”
Nick St. Denis is a second-year journalism student at Carleton University who has been playing fantasy football for five years. He said fantasy sports leagues can provide the human touch to socially-distant sports.
“I think [fantasy football] is a great way for fans to feel more involved and invested in the sport. You get to feel like you’re a real GM, making decisions about which players to draft, who to play,” St. Denis said.
He added fantasy sports can also provide connections for fans.
“It brings people together, and from my experiences, is always enjoyable,” St. Denis said. “Regardless of the sport, fantasy sports leagues make every game important.”
St. Denis said he is concerned about the success of all fantasy sports leagues in the near future due to a lack of COVID-19 safety measures. He referenced the confirmed COVID-19 cases in Major League Baseball (MLB) as an example of why players should play in social bubbles to minimize travel and avoid cutting seasons short due to COVID-19.
“If any NFL or MLB team has an outbreak of COVID-19 cases, it’s extremely difficult for the season to continue … While players are travelling from city to city, it’s difficult to ensure they are all going to be following COVID-19 safety regulations,” he said.
“Fantasy football doesn’t seem too likely to go well this season unless the NFL makes some serious changes to their season plans.”
Featured image by Jaya Budhia.
