Thanks to fans’ insatiable love for the game and ad companies’ equally undying love for profits, the fantasy sports “industry” will top $1 billion this year according to IBIS. This represents a doubling in revenue since 2007 with each year seeing double digit growth. While most of those dollars come from advertisements, according to an industry trade group, the Fantasy Sports Trade Association, the money they see spent by individuals is even higher. Either way you slice it, plenty of money is going towards something that isn’t even real.
…more than 33 million Americans take part the pastime, spending an average of $111 per year on league-related costs. That amounts to about $3.6 billion in spending…They’re based on polling data and research from Ipsos.
At least for now, fantasy sports isn’t considered gambling and isn’t being patrolled by federal or state authorities. This bodes well for those 33 million folks. For the ones that do decide to gamble on the real games instead, early in the season be sure to take the under.
In August, Mohnish Pabrai took part in Brown University's Value Investing Speaker Series, answering a series of questions from students. Q3 2021 hedge fund letters, conferences and more One of the topics he covered was the issue of finding cheap equities, a process the value investor has plenty of experience with. Cheap Stocks In the Read More