Bonuses have been a fundamental strategy for online gambling operators, effectively attracting and retaining players. However, there is a rising perspective among regulators across Europe that these incentives may be overly beneficial for gambling companies, potentially at the expense of players. Countries like Spain, Sweden, and Denmark have implemented restrictions on bonus offerings, and France announced plans to take similar actions. The UK is also considering changes, as signaled by the government's Gambling Act review white paper and the Gambling Commission's ongoing consultations.
In response to the looming threat of restrictions on bonus usage, many operators are exploring alternative ways to engage players. Free-to-play games, particularly fantasy football, have grown increasingly appealing. While bonuses are effective, they can be costly, especially considering the number of players who might exploit them.
Some operators previously viewed these games as catering only to those unwilling to invest in real-money betting, a misconception stemming from the fact that fantasy sports were primarily popular in the United States, where sports betting was largely illegal until the repeal of the Professional and Amateur Sports Protection Act (PASPA). Fantasy football has been more than just a gateway for the US market; it has revealed the significant overlap between fantasy players and bettors, a trend mirrored in the UK.
Before the launch of our Fantasy5 game in 2021, we conducted a survey of 5,000 football fans in the UK, discovering that 45% of weekly sports bettors also participated in fantasy football. The landscape is shifting. UK fantasy players, once considered more casual than their US counterparts, are becoming increasingly engaged. The rise of fantasy-related educational resources and third-party products indicates a maturation of the market.
The popularity of fantasy football is enhancing its role as a tool for acquiring and retaining customers. Among new sign-ups on our partner sites in the UK, the retention rates stand at 40% after 30 days, 30% after 90 days, and 22% after one year. The conversion rate from registration to first deposit is 15%, with a cost per registration of just £2.15.
Data from our partners shows that the average Fantasy5 user returns to their sites 2.3 times a week. Although these repeated visits might not generate immediate revenue, they enhance lifetime value by fostering player loyalty.
Typically, operators maintain engagement by cross-selling other products like casino games. However, among the proposals in the Gambling Commission's consultation is the idea that customers should be allowed to opt out of marketing communications based on product category. This could limit operators’ ability to send casino offers to betting customers but may still allow them to promote fantasy football. Consequently, fantasy sports could become an essential tool for keeping brands present in players' minds. This is especially crucial for bettors who tend to think about gambling mostly when their team is playing.
Providing engaging, cost-free options ensures that players return to the same operator when their team is scheduled to play. Retaining customers is less expensive than acquiring new ones, a principle relevant across all industries.
Jacob Kalms, the CEO and co-founder of 20Shots, oversees the operation of Fantasy5, a free-to-play fantasy football game offering weekly jackpots and prizes. 20Shots collaborates with leading operators in the UK, Ireland, and Brazil.
