Sports Illustrated plans to roll out its first fantasy sports app in late June or early July, an effort to tap the billions of dollars that consumers spend on fantasy sports annually. The app, Fan Nation, will allow users to take part in the fastest growing segment of fantasy sports, daily play, where participants select a new team each time they play and then square off against a friend or random competitor.
The first game offered through the app is “Baseball Throwdown” and involves Major League Baseball players. Sports Illustrated plans to offer similar games with players from the NFL, NHL and NBA.
Executives at Sports Illustrated, part of Time Inc., are hoping to bring on sponsors for the app, but it also offers the magazine a potentially new revenue stream.
The app lets users bet money that they will win their match, although Sports Illustrated labels the bet an “entry fee,” and pays winners their money back plus their opponent’s bet minus a “contest management fee.” A successful $5 wager, for instance, reaps $9 for the winner.
“Our audience wants to play fantasy sports,” said Jim DeLorenzo, VP-general manager of Sports Illustrated Digital. “The mandate is to make the experience so easy that even my dad could use it.”
Thirteen percent of American adults take part in fantasy sports, according to the Fantasy Sports Trade Association. And it’s big business in the U.S., where participants spent $3.38 billion on products, services and entry fees in 2012. Daily play is fueling much of the industry’s growth.
“It’s gotten more investment in the past two years than in the history of fantasy sports combined,” Paul Charchian, the fantasy sports association’s president,told Bloomberg in January.
For Sports Illustrated, the app is part of a broader digital push beginning Tuesday with the introduction of a redesigned desktop and mobile site and followed later in the week with the roll out of the streaming video network 120 Sports.
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