Why are so many people obsessed with fantasy sports?

With the AFL and NRL seasons kicking off, fantasy footy players have been deep in draft mode, carefully building their best teams.

Fantasy sports have transformed the way fans engage with many sports, sparking interest beyond simply watching matches or supporting a favourite team.

What are fantasy sports?

In simple terms, fantasy sports involve participants acting as team coaches/managers, selecting real-life players to form a fantasy team within the constraints of the game’s rules.

These teams compete based on the actual performance of the selected players in real matches. Points are awarded on various performance metrics, depending on the sport.

Many fantasy leagues also incorporate a stock market-like element. When a real-life player exceeds expectations, their fantasy value increases, while underperformance leads to a decrease in value.

This allows coaches to trade players in and out strategically, aiming to build the most valuable and high-scoring team during a season.

Success in fantasy sports often depends on statistical analysis, player scouting, and smart decision-making when it comes to trades and team selection.

The origins of fantasy sports

The first mainstream fantasy game can be attributed to Rotisserie League Baseball in 1980 by Daniel Okrent and friends.

This league required participants to track their own players’ progress using a scoring system based on statistics obtained in newspapers after a game.

With the rapid progression of technology, fantasy sports have evolved significantly, with most major sporting codes worldwide now offering multiple fantasy platforms, formats and prizes.

In Australia, the number of people playing fantasy sports has doubled since 2021, with nearly 2.5 million players engaged in one league or another.

This growth presents opportunities for content creation, expanded revenue streams, and potentially increased engagement with sports betting.

Fan engagement

The way fans engage with sports has evolved with the rise of fantasy sports, social media, and real time data tracking, leading to “second screen consumption”.

This involves fans using multiple digital platforms such as fantasy sports apps, social media and tracking of live statistics while simultaneously watching live broadcasts.

This shift has redefined the traditional sports fandom experience.

Fantasy coaches watch more games each week, with a dual identity that extends beyond traditional loyalty to the team they support.

While sports fans have historically supported a single team, fantasy sports reshape fan identity by encouraging engagement with both their favourite team and their fantasy team. Fans often watch games they normally wouldn’t be interested in specifically to watch the fantasy-relevant players involved.

Community engagement is a key motivator for participation, often surpassing interest in the real-life sports.

In Australia, a study by News Corporation Australia, which owns SuperCoach, found bragging rights, social connection and learning more about sport drive participation.

While prizes matter, the main reason people join is to connect with others.

In 2021, Australian fantasy players were largely concentrated in the larger sporting codes such as the AFL and NRL, but by 2023 it had broadened into the Big Bash League (BBL) and National Basketball League (NBL).

There are many Australians playing fantasy leagues in global sports too, from the English Premier League (soccer) to the United States’ National Football League (NFL) and National Basketball Association (NBA). Some 14% of the Australian fantasy audience plays in global leagues.

Media involvement

With some sporting seasons becoming longer and the connection to fantasy sports extending beyond live games, fans are kept invested throughout the off-season as they analyse trades, follow pre-season developments and prepare for the next competition.

Read more: How the AFL and NRL have crept into cricket's traditional summer timeslot

This almost year-round involvement offers extended media coverage and consumption of new content in a variety of formats.

Fantasy sport complements traditional media by offering alternative coverage, such as podcasts and short-form content that extends beyond game day, keeping fans connected throughout the week as they adjust their lineups and strategies.

Fantasy sports are also boosting viewership for new formats like AFLW by increasing fan engagement.

Rich pickings

Fantasy sport has been big business for a long time but the global fantasy sports market is challenging to quantify.

In 2013, Forbes estimated the NFL fantasy football market alone to be worth $US70 billion ($A111 billion), significantly surpassing the NFL’s 2021 revenue of $US11 billion ($A17 billion), highlighting its major role in the global sporting market.

Big revenues mainly come from sponsorship and advertising on fantasy platforms.

Major brands invest hundreds of millions of dollars in targeted advertising campaigns to capitalise on this engaged audience.

Money is also made by charging fees to enter some contests and to access premium analytics content, in-app purchases, and related entertainment products like websites and podcasts.

Links to sports betting

Many of the advertisers on fantasy platforms are gambling businesses.

Fantasy organisations have tried to highlight the differences between fantasy sports and sports betting, which has been linked to poor mental health, family violence and even suicide.

Their key argument is that betting is a game of chance whereas fantasy sports are games of skill.

Despite these differences, concerns have been raised about the links between fantasy sports and sports betting.

An Australian fantasy betting app was recently fined more than $A500,000 for illegally offering inducements to gamble in dozens of ads on its platform.

Whether or not fantasy sports are likely to encourage gambling is a grey area – studies in this space are mixed.

Some studies have found people who participate in fantasy sports are more likely to gamble and experience gambling-related problems.

However, others describe fantasy sports as a more positive alternative to gambling and that participants are motivated by the social benefits, rather than being motivated by a chance to win money.

As fantasy sports continue to evolve and attract new players, their ability to deepen fan engagement, foster community connections, and enhance the sports watching experience ensures they will remain a dynamic and influential part of the sporting world.