How the Fantasy Sports Market Works in Canada

Building a dream team, planning moves ahead of time, and competing with other sports fans – this is what fantasy sports offer. It combines excitement, strategy, and a genuine interest in real-life events on the field. In Canada, this format is becoming increasingly popular, and not only among NHL or NFL enthusiasts. According to a report by Horizon Databook, the market reached $1,112 million in 2023 and could exceed $3 billion by 2030. The average annual growth rate is 15.6%. It’s one of the fastest-growing segments in the digital entertainment industry.

This growth is driven not just by passion for sports. Users are drawn by the opportunity to influence outcomes, apply analytics, and compete directly with others. These factors distinguish fantasy sports from traditional betting and make them appealing to both beginners and experienced players.

What fantasy sports are

Fantasy sports are an online game format where participants create virtual teams composed of real-life athletes. Points are awarded based on players’ performances in actual matches: goals, assists, rebounds, saves, and more.

The player selects a sport and builds a team within a set budget. After the tournament begins, results are determined by real-game statistics. The better the selected athletes perform, the more points the participant earns.

There are two types of formats:

• Seasonal leagues – teams are assembled before the season starts. Participants manage their roster, make substitutions, and monitor players’ form. Final standings are determined after the regular season ends.
• Daily Fantasy Sports (DFS) – short, one-day tournaments. A new team is created each time. Players can participate daily without being tied to a league schedule.

Fantasy sports platforms are private companies. Major ones include DraftKings, FanDuel, and CBS Sports. They provide tournament access, process statistics, and handle prize payouts. In Canada, such services operate legally, except in Ontario, where a license from iGaming Ontario is required. Traditional bookmakers currently do not offer similar services.

What users do:

1. Register on a platform.
2. Make a deposit (for paid leagues).
3. Assemble a team.
4. Join a league.
5. Track statistics and make adjustments.

Fantasy sports combine excitement with analytics. It’s not just entertainment but a competition where strategy plays a major role. It’s also a great way to diversify your gambling experience – we talked more about unusual types of betting in this article.

Common types of fantasy sports in Canada

Fantasy sports are expanding rapidly, especially within team sports. In 2023, team sports became the largest source of revenue in Canada’s fantasy sports market and showed the highest growth rates.

According to studies by Leger, popular categories in Canada include:

• Hockey (NHL): Traditionally holds the leading position. Interest in the league is growing, as seen in record attendance and rising TV ratings. In 2024, arenas were filled to 97% capacity, and league revenue reached $6.2 billion.
• Football (NFL): Despite being an American league, the NFL is popular among Canadian fantasy sports fans.
• Basketball (NBA): Interest remains stable, supported by Canadian players’ participation and the success of the Toronto Raptors.
• Baseball (MLB): Fantasy baseball leagues attract attention thanks to the long season and the abundance of statistical data.

In essence, these team sports are the foundation of fantasy sports in Canada.

Why fantasy sports are becoming more popular in Canada

At the beginning, we mentioned that this is one of the fastest-growing sectors in the region. The Canadian market already accounts for 5% of the global share and continues to show positive momentum. Here’s why:

• Development of digital and mobile platforms. The expansion of digital platforms and mobile apps has made fantasy sports much more accessible. As smartphone usage rises and internet connectivity improves, more people can easily participate in fantasy sports.
• Popularization of sports analytics. The use of data analytics has become an integral part of fantasy sports. Participants can assess player performance, predict outcomes, and optimize their teams more effectively, making the game more engaging and competitive.
• Shift in consumer behaviour towards online gaming. The rise of online gaming and digital entertainment has significantly impacted fantasy sports growth. With esports and online betting becoming more popular, many sports fans see fantasy sports as an alternative form of entertainment.
• Integration with social media and communities. Fantasy sports platforms are increasingly integrating with social media, offering features like leaderboards and chat rooms to boost user engagement and expand their reach.

These factors together contribute to the sustainable growth of fantasy sports in Canada, making them attractive to a wide audience and ensuring further development.

Additionally, fantasy sports are legal across all Canadian provinces. In Ontario, paid platforms must have an iGaming Ontario license. Winnings are not taxed, as they are considered gambling gains.

Tips for beginners: how to get started and stay on track

Success in fantasy sports is more about strategy than luck. Here are some basic tips to help newcomers get started and avoid pitfalls.

• Study the platform’s rules. Before building your first team, carefully review the league format. Different sites may have varying point systems, salary caps, team structures, and tournament durations.
• Don’t chase big names. Famous players cost more but don’t always guarantee stable points. Focus on current form, statistics, and upcoming matchups. Sometimes a lesser-known player can be more valuable than a superstar.
• Stay updated with the news. Regularly check injury reports, roster changes, and player updates – all of which directly impact results. Subscribing to sports news sites and enabling push notifications on apps can be very helpful.
• Update your roster. One of the main mistakes beginners make is forgetting about their team after drafting. Winners are those who react to changes: swapping players, monitoring form, and using substitutions.
• Maintain balance. A strong team isn’t just about having stars. Distribute your budget wisely so each player can contribute points. Sometimes betting on several solid mid-level players is more effective than focusing on one leader and a group of weaker players.
• Analyze statistics. Numbers are key to understanding the game. Compare players’ effectiveness, scoring frequency, and possession percentages. The more you use analytics, the higher your chances of making the right choices.
• Test strategies in free leagues. Many platforms offer participation without financial investment. It’s a safe way to test strategies, learn the mechanics, and see whether you enjoy the format.

Remember that fantasy sports can lead to gambling addiction. We discussed this issue in more detail in this article, and we highly recommend reading it.

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