Oliver Niner, Head of B2B says that DFS remains a compelling vertical with huge growth potential especially if operators expand their offering into esports

The roll out of legal online and mobile sports betting across US states has presented a significant opportunity for operators, but the market has proved harder to crack than many anticipated.

The cost of customer acquisition is skyrocketing, building brand equity is taking much longer than expected, and there’s been a slowdown in new states embracing regulation and licensing.

This has led to a run of operators exiting the market as the numbers simply don’t add up.

But while this is happening, the daily fantasy sports space continues to thrive and remains a compelling opportunity for operators.

DFS has a unique legal standing in many states where sports betting is still restricted, allowing operators to reach audiences they otherwise couldn’t.

It also fosters deeper engagement with those who play – players aren’t just betting on outcomes; they’re actively managing lineups and pitting their knowledge and skills against others.

This is the perfect combination for retention and loyalty – something sportsbooks struggle to achieve with players easily swayed to join another brand simply because of a generous free bets offer.

There’s also an untapped opportunity in bringing the worlds of esports and daily fantasy sports together, allowing operators to connect with an entirely new audience.

Advertisement

Until now, traditional DFS brands have focused on the major sports, but the younger, digital-native audiences are more interested in esports such as CS2 and LoL than the NFL.

Why the DFS model works:

Before discussing how operators can get in on the esports DFS action, it’s important to understand why the DFS model works so well in the US, especially for those looking to diversify their offering.

The first is regulatory accessibility. DFS is legal in more states than traditional sports betting, allowing operators to enter markets where sportsbook licensing is unavailable or complex.

DFS has much lower acquisition costs while serving as a gateway to paid gaming. It often attracts a younger, more engaged audience at a lower CPA compared to traditional sports betting.

Strong user retention is another upside. Unlike one-off bets, DFS players return regularly to manage lineups, track stats and compete in contests, driving retention rates way beyond sports betting.

It’s also esports ready. Esports fans are highly engaged with player performance stats, making DFS a natural fit. It can then serve as an introduction to real-money esports betting when regulations allow.

The esports DFS opportunity to be explored:

Advertisement

DFS is an established and thriving vertical and while some operators offer esports within their proposition, it often lacks depth, innovation and mainstream adoption.

Esports fans are naturally engaged with stats, player performance metrics and in-game analytics, so easily segue into the DFS format.

Titles like LoL, CS2, Dota 2 and Valorant offer rich data sets that allow for creative and competitive fantasy formats, but most operators are yet to really get into it.

This leaves a major gap in the market and a huge opportunity for those who put together a compelling esports DFS product, especially as the popularity of esports betting grows.

What a compelling esports DFS product looks like:

The foundation of any esports DFS product is reliable, real-time data and the ability to provide a range of engaging contest formats.

This is where companies such as PandaScore come in. We provide operators with comprehensive esports data including player and team stats across all the major disciplines.

We supplement this with accurate odds and DFS pricing models, helping operators to set accurate and competitive odds – both our data and odds feeds are integrated seamlessly via API.

We also provide unrivalled market expertise; the team has years of experience powering esports betting which we leverage to ensure our partners can succeed with esports DFS.

Advertisement

In addition to markets and odds, players need to be able to access deep performance metrics so they can make informed decisions.

It’s also important for the operator to provide a smooth and intuitive experience via a seamless UX and mobile first approach to site and app navigation.

The diversity of the contests offered needs to be considered, too. This includes classic salary cap formats as well as pick’em games and more.

It goes without saying that social interaction needs to be baked into the experience through features such as leaderboards, private leagues and head-to-head challenges.

Operators need to get ahead in a rapidly evolving market:

The US sports betting and iCasino market is fast moving with the landscape constantly changing – just look at the conversation around sweepstakes casinos.

For me, DFS and especially esports DFS remain an underutilised growth channel that operators need to take advantage of.

As esports betting gains traction – PandaScore recently surpassed €1bn in bets through its platform – DFS serves as a vital entry point through which operators can build brand recognition and engage a digital-first audience primed and ready to play.

This audience might not be familiar with real-money betting today, but by providing them with an experience they are familiar and comfortable with, they can become the bettors of tomorrow.

Advertisement

At PandaScore, we are here to help operators capitalise on this opportunity with best-in-class data, pricing models and strategic support.

For operators, this means the numbers will always add up when it comes to esports daily fantasy sports.

The company will also appear on training uniforms and other club assets.

Starting this Saturday (April 26), when Avaí faced América-MG at Ressacada Stadium for the Brazilian Série B, the team will showcase a new master sponsor on their jerseys: the betting platform 1PRA1.BET.BR. The contract was signed on Friday (April 25) and is valid until April 2026. In terms of value, this agreement surpasses all previous sponsorship deals signed in past seasons.

In addition to featuring its brand in the main space on the jersey, the company will also appear on training uniforms, stadium assets (such as the big screen and field boards), and on the club’s social media platforms. Marketing activations will also be carried out throughout the year. Beyond men’s football, the agreement may also extend to other sports, which will be defined by both parties in the coming days.

“I’m proud to sign this agreement, which will be extremely beneficial for the club. It also demonstrates the strength of the Avaí brand and the value we can offer our commercial partners. We have big goals this year and will continue to seek further support to strengthen the institution in every aspect,” said Júlio César Heerdt, President of Avaí.

“It is a great pleasure for 1PRA1.BET.BR to announce our partnership with Avaí. Walking side by side with such a traditional club beloved by its fans is a point of pride for all of us. We strongly believe in the power of this union: the number one football club in Santa Catarina now paired with the number one entertainment platform. We’re very excited to take this step and confident that we will achieve great things together!” celebrated Tiago Grecco, Marketing Director at 1PRA1.BET.BR.

“We always work in Avaí’s best interest to bring more opportunities and valuable resources that can be reinvested into the club. This deal represents another collective effort by everyone here to strengthen Avaí in pursuit of even greater goals. We thank the leadership at 1PRA1.BET.BR for their trust, and I’m certain we’ll build a great relationship with mutual benefits for both the company and the team,” added Rodrigo Florenzano, Avaí’s Business Director.

In addition to 1PRA1.BET.BR, Avaí has sponsorship agreements with Genial Investimentos, WOA, Liderança, UniCesumar, and JTA Empreendimentos, as well as Volt Sport, the club’s official sportswear supplier.

Investment in championships, clubs, and national teams expands media assets and positions BETesporte as a key player in Brazil’s sports market.

BETesporte, a betting platform that proudly carries “sports” in its name, is reaffirming its leadership in the industry by reporting consistent investment results over the past four months. While most betting platforms generate the majority of their revenue from online games (virtual casinos), BETesporte stands out as one of the few where sports betting leads the way — accounting for 65% of its total revenue, compared to 35% from online games. This figure directly reflects its brand strategy and commitment to strengthening Brazilian sports.

“Over the last four months, we’ve consolidated our presence on multiple fronts, focusing on strategic returns and high-quality visibility. We’ve sponsored several state championships in all regions of the country, including the Paulista, Paranaense, Carioca, Alagoano, Gaúcho, Pernambucano, Cearense, Catarinense, Baiano, and Mineiro tournaments, as well as the highly engaging Copa do Nordeste. We’ve also invested in Series A and B of the Brasileirão, placing our brand on Brazil’s biggest football stages and ensuring mass exposure with a high value per impression. It’s a strategic allocation of resources designed to generate brand impact and strengthen the Brazilian sports ecosystem,” said Thiago Carvalho, CFO at BETesporte.

Among the platform’s most notable recent acquisitions is brand exposure during Brazil’s national team matches in the World Cup Qualifiers — a move that reinforces BETesporte’s presence on the global football stage and strengthens its connection with fans during highly visible moments.

“We truly believe in the power of sports as a driver of connection and engagement. At BETesporte, we’re constantly investing in improving our platform with new features and more real-time betting options. Our marketing plan is performance-oriented: we aim to energize Brazil’s sports scene through active sponsorships in Series A and B of the national league — with master sponsorships, LED field displays, and direct club support. We bet on sports both as a passion and a business,” added Danylo Campos, CTO of BETesporte.

Beyond football, BETesporte is expanding its social impact by supporting up-and-coming athletes, providing financial assistance to help them compete and grow in sports like kickboxing, table tennis, and jiu-jitsu — an initiative that helps uncover new talent and democratize access to high-performance sports.

The company also maintains partnerships with traditional clubs like CRB, CSA, and Volta Redonda, reinforcing its regional presence and boosting local fanbases with strong community ties.

BETesporte’s credibility is further strengthened by the presence of legendary Brazilian football figures as brand ambassadors, including Zico, Vampeta, Diego Souza, and Macaé — personalities who bring even more legitimacy to the company’s presence in the sports world.