The Economics Of Fantasy Sports

September 22, 2013 in Daily Bulletin

Lisa Chow wrote about fantasy economics:

  • In 2012 people paid $1.7 billion to play in fantasy leagues. This has led to an entire fantasy-league industry.
  • One company allows players to purchase real insurance products. If an individual is in a $100 league, then they can pay $10 – and if their star player goes down then the insurance company pays out the full $100.
  • There are also mediators who will resolve disputes between fantasy league players for $14.95.
  • LeagueSafe, a company that holds entry fees and manages payouts for leagues is an entire business with eight employees. They don’t charge any money for their services – they simply invest the cash they hold during the fantasy season.
  • Fantasy sport companies have done so well they’ve banded together to create their own lobbying group.

Read more about the fantasy company that gives an extra dose of fantasy, the most insured fantasy player and more over here.

Source: NPR