Sports Illustrated Enters the Daily Fantasy Sports Marketplace

[Posted by Alice]

According to Forbes, Sports Illustrated, a publication once best known for its annual swimsuit issue, has announced that it is launching a daily, play-for-cash app and entering the “daily fantasy sports marketplace.” In the past, daily fantasy sport was dominated by startups, but the government has taken a hands off approach and professional sports leagues have not legally challenged these games, so the playing field is wide open, no pun intended. Major League Baseball maintains a cooperative agreement with one daily fantasy website, and though there are possible federal challenges ahead, that probably won’t stop CBS and Yahoo from entering the “daily fantasy sports marketplace.”

Wikipedia says, “A fantasy sport (also known as rotisserie, roto, or owner simulation) is a game where participants act as owners to build a team that competes against other fantasy owners based on the statistics generated by the real individual players or teams of a professional sport… Probably the most common variant converts statistical performance into points that are compiled and totaled according to a roster selected by a manager that makes up a fantasy team.”  According to this same Wikipedia entry, the Fantasy Sports Trade Association estimates that 32 million people aged 12 and over in the U.S. and Canada played fantasy sports in 2010, and participation has grown 60% in the past four years. And mobile devices have made it easier to play these games.

SI publisher Brendan Ripp said, “With consumers flocking [to mobile], with advertising dollars flocking there, what we wanted to build … is a successful mobile plan so that the consumer will consume our content across any device including desktop and come away with a positive experience with the right advertising built into it.” SI doesn’t intend to have fantasy games on its site, like ESPN and Yahoo, but wants to “get ahead of the curve” with this app, allowing people to challenge their friends “to single-day matchups” that they can gamble on.

The idea of picking players and running a game based on stats has been around since the 1940s, but the idea that a computerized statistical modeling of professional sporting events could be something that would help to keep a publication like Sports Illustrated in the running is another remarkable effect of the proliferation of mobile devices.