Interview - Andrew Wainstein, CEO Fantasy League
Fantasy League interview – Andrew WainsteinPaul Sculpher recently travelled to the riverside Camden offices of Fantasy League (www.fantasyleague.com) to speak to their CEO and founder, Andrew Wainstein.PS : Andrew, can you tell us some of the history as to where your organisation came from?AW : I have a background in computing and am also a football fan, so when I first heard of fantasy sports in the USA, I began to think about putting the two together. Our fantasy setup started back around 1991 and was effectively a postal game. Things really began to take off when we did a deal with the Daily Telegraph to run their fantasy football game, which of course ran through updates in the paper, with information stored on our computer. From there, things took off right away and three or four papers began running their own competitions in the same season.
There was quite an explosion of interest, with a Fantasy Football radio show on Radio Five which became a TV show loosely based around the fantasy game. This became something of a cult hit, with David Baddiel and Frank Skinner hosting.And how does the organisation look now?We have around 30 employees, roughly split into one third on the technical side, one third sales and account managemet, and one third effectively the games people, responsible for updating all the statistics in real time to keep the players’ teams scores correct. Our football people input goals and assists during the games, so players can see how they’re doing at all times.And how big is the market?We think in the UK that there are about 3.5 million regular fantasy players. The USA is the monster market – we think they are about 5 years ahead of us, and have 20-25 million total players. The American sports tend to lend themselves to fantasy very well indeed, and it’s much more a part of popular culture over there [possibly as sports betting is so limited in legal terms, everyone wants an extra interest on the games].How does your business model function?We have a variety of differing products. The best known are the leagues we run for major newspapers, the best known of all probably being the one we run for the Sun. In that case it is just a straight service fee that we’re paid.
We also run our own leagues, for which there is a subscription fee and a prize, and also we run smaller leagues where people can get together with a few friends and have their own personal league. A key difference in these types of leagues are that they usually run on an auction basis, where each footballer can only be owned by one team manager, and at the start of the season everyone bids for each player. In those types of leagues we charge a fee too.What are your plans for expanding the business? Are you aiming at new geographical sectors?Definitely. The USA is a pretty mature market, so we are looking further afield. Australia is a very promising market, with a sport obsessed audience and a very internet-literate population. Their sports are also fairly heavily statistically based and on regular schedules, both of which help to make a solid fantasy product. We are also looking at some huge untapped markets such as India, with both Premier League football and cricket in mind. We’re looking at mobile-based solutions in that case – internet penetration might not always be at a high level, and mobile-based subscription can help us with payment methods as well.And how about new markets at home?We’re very happy with our association with William Hill, the bookmakers. They have their own fantasy product, a white label solution provided by us, but they have really moved the offer on, for example by offering bets on first goalscorer in a match tailored to whoever the player has in their fantasy team. They also have set things up so that the potential player must have a William Hill betting login to play, to attempt to leverage their fantasy database into betting customers. We’re looking to expand our offer into other bookmakers.
It works two ways for betting providers – they can run their own fantasy products and convert one type of player into another, and they can also partner up with an existing fantasy operator such as a newspaper, and advertise to their fantasy players. There seems to be a clear correlation between potential betting customers and fantasy players.
We are also constantly looking at other options to complement our sporting offers. One of the more interesting ones we have recently become involved in is Finance games. We offer, for example, a fantasy fund trading product for IFAs (Independent Financial Advisers) where they trade with a virtual portfolio and can make or lose money, and no doubt point to the results to show potential customers their skills.Or possibly not, depending how their trading goes! Anything else in the pipeline?
Yes, we’re not the only ones paying attention to sites like “FanDuel”, which are like a type of social betting mixed with fantasy sports only shrunk into a much smaller period of time than a whole season. There’s only a limited amount of revenue available though, until the operator scales up to a huge degree, and it’s a question of finding the right moment, as fantasy sports catch up with our American counterparts, before rolling out a product of that kind.
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There was quite an explosion of interest, with a Fantasy Football radio show on Radio Five which became a TV show loosely based around the fantasy game. This became something of a cult hit, with David Baddiel and Frank Skinner hosting.And how does the organisation look now?We have around 30 employees, roughly split into one third on the technical side, one third sales and account managemet, and one third effectively the games people, responsible for updating all the statistics in real time to keep the players’ teams scores correct. Our football people input goals and assists during the games, so players can see how they’re doing at all times.And how big is the market?We think in the UK that there are about 3.5 million regular fantasy players. The USA is the monster market – we think they are about 5 years ahead of us, and have 20-25 million total players. The American sports tend to lend themselves to fantasy very well indeed, and it’s much more a part of popular culture over there [possibly as sports betting is so limited in legal terms, everyone wants an extra interest on the games].How does your business model function?We have a variety of differing products. The best known are the leagues we run for major newspapers, the best known of all probably being the one we run for the Sun. In that case it is just a straight service fee that we’re paid.
We also run our own leagues, for which there is a subscription fee and a prize, and also we run smaller leagues where people can get together with a few friends and have their own personal league. A key difference in these types of leagues are that they usually run on an auction basis, where each footballer can only be owned by one team manager, and at the start of the season everyone bids for each player. In those types of leagues we charge a fee too.What are your plans for expanding the business? Are you aiming at new geographical sectors?Definitely. The USA is a pretty mature market, so we are looking further afield. Australia is a very promising market, with a sport obsessed audience and a very internet-literate population. Their sports are also fairly heavily statistically based and on regular schedules, both of which help to make a solid fantasy product. We are also looking at some huge untapped markets such as India, with both Premier League football and cricket in mind. We’re looking at mobile-based solutions in that case – internet penetration might not always be at a high level, and mobile-based subscription can help us with payment methods as well.And how about new markets at home?We’re very happy with our association with William Hill, the bookmakers. They have their own fantasy product, a white label solution provided by us, but they have really moved the offer on, for example by offering bets on first goalscorer in a match tailored to whoever the player has in their fantasy team. They also have set things up so that the potential player must have a William Hill betting login to play, to attempt to leverage their fantasy database into betting customers. We’re looking to expand our offer into other bookmakers.
It works two ways for betting providers – they can run their own fantasy products and convert one type of player into another, and they can also partner up with an existing fantasy operator such as a newspaper, and advertise to their fantasy players. There seems to be a clear correlation between potential betting customers and fantasy players.
We are also constantly looking at other options to complement our sporting offers. One of the more interesting ones we have recently become involved in is Finance games. We offer, for example, a fantasy fund trading product for IFAs (Independent Financial Advisers) where they trade with a virtual portfolio and can make or lose money, and no doubt point to the results to show potential customers their skills.Or possibly not, depending how their trading goes! Anything else in the pipeline?
Yes, we’re not the only ones paying attention to sites like “FanDuel”, which are like a type of social betting mixed with fantasy sports only shrunk into a much smaller period of time than a whole season. There’s only a limited amount of revenue available though, until the operator scales up to a huge degree, and it’s a question of finding the right moment, as fantasy sports catch up with our American counterparts, before rolling out a product of that kind.







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