Fantasy Sports is an industry that has growing a whole lot. Even though many people love it, many people wonder….is it actually good for a person to participate in. The gambling industry itself, has already been receiving a lot of controversy throughout recent years. However, Fantasy Sports has been adding on to the controversy. Its growth has a lot to do with it. It is an industry that does not seem to be dying down anytime soon. Especially in countries like the USA and Australia.
This industry has generated over billions and billions of dollars worldwide. It has been helping the gambling industry grow a lot recently. The more it grows, the more controversy there will be.
Finances is the biggest concern many have about Fantasy Sports. In America, Fantasy Football is the biggest aspect of it. However, many Americans do participate in Fantasy Basketball and Fantasy Baseball. Both of those aspects are growing as well in the United States. In Australia, MLS is the biggest in Fantasy Sports. Billions and billions of people worldwide end up losing some money when they are participating in this form of sports betting. With more and more people participating in this form of gambling, there are more financial concerns rising.
As this part of the gambling industry grows along with other parts, more debts are occurring. A study performed by Eilers Researchers determined that 70% of players actually end up losing money. Only 10 to 20 percent of the popular players actually win something for the most popular tournaments. On average, the top 1.3 percent of the players paid $9,100 in entry fees, based on the research performed by the Sports Business Journal. The elite group of fantasy are called sharks. They have earned a 27 percent return on their contributions. The amount they have pocketed is $2,400 each. Minnows are the bottom 80 percent. This group of players have spent an average of $49 on entry fees. Unfortunately they have lost around half of what they have contributed.
Fantasy Sports has produced some lucky huge winners. Americans have been spending a total average of $800 million a year on fantasy sports, according to Forbes. Many players today are willing to spend more on fantasy sports than others have in previous years.
Fantasy Sports is not considered gambling in a few states, even though this is an industry in which there has to be winners and losers. Each time a person winners, a person loses. The outcome of the event determines the losers and winners.
This type of gambling is known to have a negative impact on gambling addicts. Those who are gambling addicts or recovering ones are at a large risk of losing a lot of money when participating in this. Including those who are only interested in the betting aspect of gambling like this.
According to fool.com, “The risk of debt is just as high with daily fantasy sports as it is with any other category of gambling.
Keith White, a member of the National Council on Problem Gambling, said, “The financial harm is significant.” Then continued by saying, “People risk more than they can afford to lose, and then lose more than they can afford. They dip into money that was meant for bills. They are not able to stick with limits they set for time and money spent on fantasy. They borrow money from friends, they put it on credit, [and] they go into bankruptcy,” according to this report.
Experts on problem gambling along with Keith, have mentioned a key problem with fantasy problem. The key problem is many think it is a game of skill and not luck. When they have a bad run, they think that they will have a big win soon. Unfortunately in most cases, this is not the case. In most cases, even more money is lost. A lot of fantasy sports players use the money that can be used for bills to be able to take part in it. Some even go as far by borrowing money from family members and friends just to gamble it away on their fantasy team.
Since many people participate in it and spend a lot of money on it, those who own fantasy sports are in strong support of it. Not only does this help the owners, it also helps the sports league because in order to participate in in, you have to stay updated on the athletes you have selected in real time. Obviously, there are people who treat this form of gambling in a responsible manner. If you do decide to participate in it, make sure you think this out carefully and know how to budget the money in a correct manner for your financial situation.