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.

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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:

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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.

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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.

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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.

BETBY, the cutting-edge sportsbook provider, has further cemented its position as one of the most innovative suppliers in the sports betting landscape following a standout appearance at SiGMA Americas, the leading event for the iGaming industry in Latin America.

Hosted in São Paulo, Brazil, SiGMA Americas brought together the industry’s most influential stakeholders, with a spotlight on the dynamic and fast-growing Latin American market. BETBY stood out at the event by showcasing the full strength of its flexible sportsbook solution, designed to empower operators with complete control over the betting experience.

A major highlight of the exhibition was BETBY’s showcase of its hyper-localised content capabilities, which empower operators to engage regional audiences with culturally relevant offerings. This strategic focus was exemplified by the industry’s most comprehensive Vaquejada betting solution, a rodeo-style sport particularly popular in northeast Brazil. BETBY’s unique content portfolio, which includes both pre-live markets and an immersive e-sim version of the sport, resonated strongly with operators and attendees. It demonstrated not only a deep understanding of regional preferences, but also the supplier’s ability to create tailored content for any market.

Alongside this, BETBY exhibited continued innovation through its proprietary esports feed BETBY Games, and its comprehensive suite of AI tools AI Labs, which leverages artificial intelligence to deliver personalisation, real-time recommendations, and enhanced operational efficiency.

As further recognition of its ongoing innovation in the iGaming industry, BETBY was honoured with the Best Esports Product award during the SiGMA Americas Awards ceremony. This win underscores BETBY’s vision to redefine the esports betting experience through its BETBY Games solution, which is designed to deliver unmatched flexibility, customisation, and engagement for operators and players.

“This recognition at SiGMA Americas is a proud milestone for our entire team, even though our presence in Brazil this week was about much more than awards,” said Leonid Pertsovskiy, BETBY’s Chief Executive Officer. “It was about connecting with the region, understanding what local players truly value, and showing that we have the technology and vision to meet those needs. We’re building products that scale globally but connect locally, and that’s what sets BETBY apart.”

PlayVS, the leading esports platform in North America, announced a multi-year partnership with Zenni Optical, the world’s leading online eyewear retailer. This partnership establishes Zenni as the official eyewear partner of PlayVS, bringing exclusive benefits to PlayVS’ esports community.

As part of this collaboration, Zenni will serve as the official eyewear partner of the PlayVS Cup, the annual national esports championship for high school students. The Cup provides top scholastic esports teams from across the country with an opportunity to compete for a national title and earn recognition and awards, including college scholarships. Zenni’s partnership will help power scholarship prizes for Cup finalists, furthering PlayVS’ dedication to empowering students and supporting their educational and athletic ambitions. These scholarships not only aid with alleviating financial strain, but also highlight esports as a viable pathway to academic and professional success.

Zenni’s eyewear will also be included in the prize packages that PlayVS Cup champions and PlayVS Awards winners receive, providing students with high quality eyewear to complement their gaming performance. Additionally, Zenni will offer members of the PlayVS community exclusive discounts on eyewear.

“We are excited to partner with PlayVS and expand our ongoing support of the gaming and esports community. Empowering a dedicated high school esports program that not only will generate awareness around the importance of eye health to a new generation of gamers but also support their academic pursuits is such an amazing opportunity for Zenni to partner with,” said Robb Chiarini, Head of Partnerships, Licensing, & Events at Zenni Optical.

Through this partnership, Zenni will also be integrated into PlayVS’ content series, Road to the PlayVS Cup, a set of videos showcasing different esports programs across the nation as they compete to earn a spot in the PlayVS Cup.

“Partnering with Zenni is a natural fit for us as we continue to grow the high school esports community. Zenni shares our commitment to supporting students in both esports and academics. By joining forces with Zenni, we’re empowering students with scholarships and enabling them to partake in healthy competition to foster their esports careers. We’re excited to work together and bring Zenni’s eyewear to our community of gamers,” said Jon Chapman, CEO of PlayVS.