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Even More Fun with Numbers: Fantasy Sports Fantasies September 1, 2006

Posted by David Card in Media.

Football starts next week, so BusinessWeek gushes over fantasy sports.

    And big groups mean big money. The fantasy sports industry generates $1 billion to $2 billion a year on publication subscriptions, paid league entrance fees, mail-order draft kits, and fantasy software and other products, says Jeffrey Thomas, (Fantasy Sports Trade Association) president. It’s a safe bet a lot of that revenue is ending up online, the playing field for 92% of those who engage in fantasy sports.

No, it’s not. We’re still updating our paid content forecast, but we haven’t seen any reason to think last year’s estimates of $50 to $60 million in online consumer fees are far off. There’s more action in advertising than ever — and fantasy sports players are a desirable audience — but fantasy sports is not a billion dollar business online. Not by a long shot.

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