Public Gaming Magazine November-December 2015

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Daily Fantasy Sports (DFS) could be slowly
undermining the lottery and casino industries. A
new poll released by Leger, The Research Intel-
ligence Group, shows that a majority of online
Daily Fantasy Sports (DFS) players are spending
money on the activity by trading off their spend
on lottery and casino games. Among the 15%
of U.S. adults who claim to have played DFS
this season, more than three out of five (61%
of DFS players) agree that their Fantasy Foot-
ball spend this season has lowered their spend
on Lottery games such as Powerball, Mega Mil-
lions, Scratch or Instant Games, or other Lot-
tery draw games.
As part of the core base of lottery players,
84% of DFS players mentioned playing a lot-
tery game in the past month—more than twice
the level cited by American adults overall (41%).
With a majority of these Daily Fantasy Sports
players claiming to be spending less on lottery
games in general, could further increases in their
DFS spend lead to an increased impact on their
lottery outlay?
“Specific to state lotteries, this is an external
factor contributing to a perfect storm,” said
Lance Henik, Senior Account Manager at Leger.
“First, consider the reduction in blockbuster
jackpots from Powerball or Mega Millions that
may have impacted cross-play for other games
in many state lotteries, especially among the ca-
sual player base. Next, consider the preference
among younger players for online gaming, es-
pecially for those platforms where players can
put their skin in the game, is being met with
the DFS option. Finally, with many state lotter-
ies exercising extreme caution in implementing
online platforms for their own games, playing
catch up in this quickly evolving market fur-
ther exacerbates the threat that DFS presents in
stemming the growth of state lottery sales.”
FanDuel players claim an average spend of
$37 each time they play, narrowly behind the
$39 per-play recounted by those who use Draft-
Kings exclusively. Players who play on both
FanDuel and DraftKings report a significantly
higher spend across both sites.
The Leger research also shows a majority of
DFS players, 56%, agree that their Fantasy Foot-
ball spend this season has lowered their spend
on casino gambling. This may explain the mo-
tivation behind the state of Nevada having ruled
last week that participation in DFS falls into the
state’s definition of gambling, joining Arizona,
Iowa, Louisiana, Montana and Washington as
states that prohibit this activity. Currently, DFS
has been classified as a game of skill and there-
fore is not considered gambling under the 2006
Unlawful Internet Gambling Enforcement Act
(UIGEA), but if a growing number of lawmakers
get their way, this may change in the near future.
Daily Fantasy Sports participants are en-
trenched players: More than four out of five
(82%) DFS players play on FanDuel at least
once a week.
“It appears Daily Fantasy Sports is serving
up a double economic whammy for state gov-
ernment’s right now.” believes Simon Jaworski,
Sr. VP at Leger, and one of the world’s leading
experts on lottery and gaming. “These fantasy
behemoths are not currently filling the local
coffers with tax, due to their private ownership,
which when coupled with potentially lower tax
revenue from the DFS player’s reduced lottery
and casino spending, it is certainly a situation
worth monitoring.”
However, major TV networks should also
take note, as time is becoming a bigger issue
with daily fantasy play. Leger’s research shows
more than half of DFS players agree (either
completely or somewhat) that the time they
spend keeping up on Fantasy Football, includ-
ing watching Fantasy Football television shows
and NFL games, is getting in the way of their
ability to watch their favorite shows. ■
Daily
Fantasy
Sports
Spend
Impacting
Lottery,
Casino
Play
L ance Henik
Simon Jaworski
Read more on Daily Fantasy Sports on page 18.
For more information on this exciting and topical Gaming research, please contact:
Lance Henik, Sr. Account Manager, Leger: 215-643-8744 or
Simon Jaworski, Sr. Vice President, Leger: 215-643-8753 or
Leger is the largest Canadian-owned polling, research, and strategic marketing firm with 600 employees in Montreal, Quebec City,
Toronto, Edmonton, and Calgary in Canada, and Philadelphia in the United States. Leger is part of the WIN network partners in
more than 100 countries, making Leger not only the largest Canadian-owned company in its sector, but also an internationally
recognized brand.
Leger provides its clients with unique expertise in market research and information technology, in addition to business consulting
and strategies in the fields of customer satisfaction, positioning, brand management, communication efficiency, corporate reputa-
tion, social acceptability, crisis management and customer experience. For more information on Leger, please consult our Web site,
16 // PUBLIC GAMING INTERNATIONAL // November/December 2015