How Fantasy Sports Apps Make Money

The fantasy sports industry is achieving a significant boom with a projection of a $10.13 billion increase from 2025 to 2029, with a boost of 7.1% CAGR because of technological advancements and growing global popularity among people. This growth is largely driven by the increasing use of fantasy sports apps.

As the market grows, businesses are exploring diverse monetization strategies like subscriptions, in-app purchases, advertising, and blockchain transactions to enhance profitability in fantasy sports apps.

This blog explores how fantasy sports apps generate revenue, key monetization strategies, and the most effective ways to build a financially sustainable platform in 2025.

What is a Fantasy Sports App?

A fantasy sports app is a digital platform that enables users to create virtual teams consisting of real-life professional athletes. These teams compete based on the actual performance statistics of the selected players in live games. Users earn points according to their players’ real-world achievements as goals, assists, or other key performance metrics. The objective is to build a high-performing team that outshines competitors, making the experience engaging and competitive for sports enthusiasts.

How Fantasy Sports Apps Work

• Team Creation: Users register on the app and draft virtual teams by selecting real players from a particular sport, such as football, basketball, cricket, or baseball.
  
• Budget Constraints: Many apps include a salary cap or budget system, requiring users to strategically assemble their team while staying within financial limits.
  
• Real-Time Performance Tracking: The app tracks live player performances and converts their statistics into fantasy points using a predefined scoring system.
  
• Scoring and Rankings: Points are awarded based on players’ in-game performances, and team rankings are updated in real time, allowing users to monitor their standing against competitors.
  
• Transfers and Trades: Users can modify their teams by making transfers or trades, adjusting for player form, injuries, and upcoming fixtures to optimize performance.

Revenue Models Of Fantasy Sports Apps

Fantasy sports apps have become billion-dollar businesses by leveraging the passion of sports fans. They employ various revenue models to enhance engagement and maintain steady profits. Here are the top monetization strategies, illustrated with examples from industry leaders.

1. Entry Fees from Paid Contests

One of the most lucrative revenue streams for fantasy sports platforms is entry fees from cash-based contests. Users pay to enter these contests, and the platform takes a commission from the prize pool. Typically, platforms retain 10-20% of the total entry fees.

How It Works:

• Users build fantasy teams by selecting real-life athletes.
• They enter paid contests with different entry fee levels.
• Winners earn cash prizes based on their team’s performance.
• The platform deducts a commission before distributing winnings.

Real-World Examples:

• FanDuel: During the 2025 Super Bowl, FanDuel processed a staggering 17.7 million bets from three million users, with total wagers exceeding $470 million.
• DraftKings: In 2024, DraftKings and FanDuel jointly dominated 80% of the U.S. sports betting market, which recorded $135 billion in total wagers that year.

2. In-App Advertisements and Sponsorships

Fantasy sports apps leverage their massive user base to attract advertisers and sponsors. Brands pay to display ads, sponsor contests, or run special promotions. Platforms earn revenue through ad impressions, clicks, or direct sponsorship deals.

How It Works:

• Companies sponsor contests or buy ad placements.
• Users engage with these ads, boosting brand visibility.
• The platform earns revenue based on engagement metrics.

Real-World Examples:

• Dream11: In June 2023, Dream11 secured the lead jersey sponsorship for the Indian National Cricket Team from July 2023 to March 2026 for ₹358 crore ($43 million).
• FanDuel: Invested heavily in Super Bowl 2025 marketing, recognizing it as the biggest event for customer acquisition in sports betting.

3. Subscription-Based Premium Memberships

Some fantasy sports apps offer premium memberships that unlock advanced features, including expert analytics, ad-free experiences, and access to exclusive contests. These memberships generate recurring revenue while enhancing user engagement.

How It Works:

• Users subscribe to monthly or annual plans.
• Premium members gain access to exclusive features.
• The platform benefits from a predictable, steady income stream.

Real-World Examples:

• Underdog Fantasy: Launched in 2020, Underdog Fantasy gained traction with its unique “Best Ball” format, attracting serious fantasy players willing to pay for an enhanced experience.
• Scopely’s Monopoly Go!: Although not a fantasy sports app, Monopoly Go! became 2023’s highest-grossing mobile game, generating $1 billion in revenue, largely through in-app purchases and premium content.

4. Affiliate Marketing and Referral Partnerships

Fantasy sports platforms partner with media companies, sportsbooks, and sports brands, earning commissions for driving traffic or referrals. This model creates additional revenue without requiring direct user transactions.

How It Works:

• The app promotes partner brands through special offers.
• Users engage with these promotions, leading to conversions.
• The platform earns a commission for successful referrals.

Real-World Examples:

• FanDuel: Works with sports leagues, media outlets, and influencers, leveraging affiliate marketing to expand its user base.
• DraftKings: Has referral partnerships with major sports organizations and media companies, generating revenue through strategic collaborations.

5. In-App Purchases and Virtual Goods

Beyond cash contests, some fantasy sports apps introduce in-app purchases, offering virtual goods, power-ups, or exclusive customization options. These microtransactions boost engagement while adding an extra revenue stream.

How It Works:

• Users purchase virtual items or enhancements.
• These features improve gameplay or personalization.
• The platform earns revenue from frequent microtransactions.

Real-World Examples:

• MPL: Mobile Premier League (MPL) offers multiple gaming experiences, with in-app purchases significantly contributing to its $2.19 billion valuation as of August 2023.
• Scopely’s Monopoly Go!: A dominant force in mobile gaming, it surpassed $1 billion in revenue in 2023, with in-app purchases playing a crucial role.

6. Data Monetization and Analytics Services

User behavior data is a goldmine for fantasy sports platforms. Companies analyze this data to optimize their services, personalize user experiences, and even sell insights to third parties such as sports teams and advertisers.

How It Works:

• Platforms track and analyze user engagement.
• Aggregated data helps improve marketing and product features.
• Insights are sold to advertisers or sports-related businesses.

Real-World Examples:

• Dream11: Leverages user data to refine engagement strategies, leading to significant growth and revenue of ₹6,384 crore ($770 million) in FY23.
• FanDuel: Uses data analytics to optimize betting odds, enhance marketing, and personalize user experiences, maintaining its leadership in the U.S. market.

Challenges in Monetizing Fantasy Sports Apps

Monetizing fantasy sports apps comes with significant challenges that developers and operators must navigate to ensure profitability and sustainability. The key hurdles include:

1. Regulatory and Legal Hurdles

Fantasy sports apps navigate a complex legal landscape, with regulations varying by region. Some classify them as games of skill, while others consider them gambling, imposing strict compliance requirements. In October 2024, the UK’s Gambling Commission took legal action against Sorare, alleging it operated without proper licensing despite partnerships with major sports leagues. Such regulatory scrutiny highlights the ongoing challenges fantasy sports platforms face in maintaining compliance while expanding their operations.

2. Technical Challenges

Ensuring a seamless user experience requires overcoming significant technical barriers, especially during peak events. Fantasy sports platforms must handle real-time data processing, instantaneous payment transactions, and personalized content delivery while maintaining system stability. Managing traffic spikes, often with hundreds of thousands of concurrent users, is a critical challenge that necessitates a robust and scalable infrastructure.

3. User Retention and Engagement

With intense competition in the fantasy sports industry, retaining users is an ongoing challenge. Platforms must offer innovative features, strategic updates, and engaging content to sustain user interest. The Fantasy Premier League (FPL) has successfully grown its user base to an estimated 11.5 million players by leveraging advanced player performance analytics and strategic gameplay mechanics, mirroring real-world football management trends.

4. Monetization Strategy Optimization

Determining the most effective monetization strategy, whether through in-app purchases, subscriptions, or advertisements, requires a deep understanding of user behavior. It is crucial to balance revenue generation with user satisfaction. However, the transition to paid models in fantasy sports has caused frustration among long-time users, who are increasingly dissatisfied with the rise of premium subscriptions and paywalled content.

5. Data Security and Privacy Concerns

Fantasy sports apps handle vast amounts of sensitive user data, making data security a top priority. Ensuring compliance with data protection laws and implementing stringent security measures is critical to preventing breaches and maintaining user trust. Failure to do so can result in severe legal and reputational consequences for the platform.

Future Trends in Fantasy Sports Apps

The fantasy sports industry is expanding rapidly, driven by technology and changing consumer behaviors. This growth is fueling innovative monetization strategies, including:

1. AI-Driven Personalization

Artificial Intelligence is revolutionizing fantasy sports by delivering personalized content, predictive analytics, and real-time recommendations. For example, Disney plans to integrate AI into its ESPN app to offer tailored sports content, including fantasy sports features, aimed at engaging younger, tech-savvy audiences.

2. Blockchain and NFT Integration

Blockchain technology and NFTs are introducing new monetization models. Platforms like Sorare allow users to buy, sell, and trade digital player cards, adding a collectible aspect to fantasy sports. However, these innovations also face regulatory scrutiny, with legal actions questioning their compliance with gambling laws.

3. Global Expansion and Regional Adaptation

As fantasy sports platforms grow into new territories, the customizations retaining the local tastes become increasingly important. By incorporating local sports popular with the population and culturally relevant elements, they can attract a wider audience and unleash new revenue opportunities. 

4. Mobile Accessibility and Gamification

Users can access live leaderboards, achievements and other tabs because of mobile accesibilty and gamification in fantasy sports. Also, these features will help the company to attract more users and increase the retention rate that helps revenue to grow.

5. Strategic Partnerships and Sponsorships

Various sports leagues, teams and other brands are collaborating with fantasy sports apps opening another way of revenue streams. These partnerships helps businesses to grow and boost income through sponsorships, exclusive content and co-branded experiences.

Conclusion

The fantasy sports sector is now expanding at an unparalleled rate, which provides the businesses plenty of ways to monetize their offerings. With the introduction of new technologies and increased user engagement, this type of app can leverage various monetization strategies, including subscriptions, in-app purchases, advertising, and NFT-based transactions, to generate revenue.

Building a fantasy sports app is highly profitable now a days specially because of AI, blockchain and so on. Also, real time sports analytics and user experience is inviting more people to engage in these apps that is helping businessmen and entreprenuer to make these app more advance and profitable.

Want To Build A Fantasy Sports App With IdeaUsher!

With over 500,000 hours of development expertise, we specialize in building innovative and scalable fantasy sports platforms tailored to your needs. 

Our expert team integrates cutting-edge technologies like AI-driven analytics, real-time data processing, blockchain security, and immersive gamification to enhance user engagement and drive revenue. 

Whether you’re launching a DFS platform, season-long fantasy league, or NFT-based fantasy sports app, we provide end-to-end solutions to ensure your success.

Partner with Idea Usher today and create the ultimate fantasy sports experience that keeps users coming back for more!

100% Developer Skill Guarantee; Or Your Money Back.

FREE CONSULTATION

Free Consultation

FAQs

Q.1. How much does it cost to develop a fantasy sports app?

The cost varies based on features, platform, and complexity. A basic app costs $30,000–$80,000, while advanced versions with AI, real-time data, and blockchain security can range up to $100,000. Development costs also depend on the team’s location and expertise. Ongoing maintenance, updates, and server costs should also be factored into the budget.

Q.2. How to build a fantasy sports app?

Start with market research to understand trends and competitors. Define key features like live scores, leaderboards, payment gateways, and AI-driven insights. Choose a suitable tech stack (React Native, Node.js, Firebase). Develop a user-friendly UI/UX, integrate third-party APIs, and conduct thorough testing before launch.

Q.3. How much does it cost to develop a sports app?

A simple sports app costs $20,000–$50,000, while advanced apps like fantasy platforms or AI-driven analytics can range from $80,000 – $100,000+. But costs also depend on complexity, third-party integrations, and development location.

Q.4. How do fantasy football apps make money?

Fantasy football apps earn through entry fees and contest commissions, subscriptions, ads and sponsorships, in-app purchases, and emerging models like NFT trading. Premium features, virtual goods, and ad-free experiences also boost revenue.