Facebook, Inc. FB is launching fantasy sports and other fantasy games in a push for more time spent by consumers on the company’s app.
What Happened: Facebook Fantasy Games is the name of the new segment that will be offered on the company’s app for iOS and Android.
Up first for Facebook is a game called Pick & Play Sports, in partnership with Whistle Sports. Users will score points for picking the winner of games and points scored by players during the match.
Other fantasy games from Facebook include a game based on the popular reality show “Survivor” that airs on ViacomCBS Inc.'s VIAC CBS. Another game is planned for predicting outcomes on “The Bachelorette,” a popular reality show that airs on Walt Disney Co DIS unit ABC.
“Facebook’s foray into fantasy gaming and sports is really exciting for the entire sector,” Roundhill Investments Vice President of Research Mario Stefanidis told Benzinga. Roundhill runs the Roundhill Sports Betting & iGaming ETF BETZ, which holds shares of companies involved with daily fantasy sports, sports betting and iGaming interests.
Facebook plans to launch games covering sports, television shows and pop culture. A social aspect will be included with top players and Facebook friends shown on leaderboards. Fans can also create their own leagues to play with friends or people with a shared interest.
The social media company is pushing further into gaming segments and has explored showing more live events with a split-screen model to increase engagement and social interactions with friends.
Related Link: Facebook Q2 Earnings Takeaways: Big Revenue Beat, Cautious Outlook
Why It’s Important: Facebook remains one of the most visited social media platforms in the world. The company has lost market share with time spent on its app to TikTok, which was the top social media platform for time spent in 2020.
“Facebook is also looking to keep users active on the platform, as growth for domestic MAUs in the US & Canada has flatlined in recent quarters,” Stefanidis said.
Facebook has more than 2.8 billion monthly active users, which could give it a leg up on the competition as customer acquisition is an important hurdle for betting and iGaming companies.
“While Facebook Fantasy Games is currently free and intended to appeal to a much more casual audience, the offering is going to introduce an entirely new demographic to the space.”
Stefanidis points to Facebook possibly introducing sports betting or iGaming by acquiring an existing company to bring in infrastructure and avoid regulatory hurdles.
“One interesting aspect of the press release was their partnership with MLB, to create a game where fans can pick the teams they think will hit the most home runs that day.”
Stefanidis noted that Major League Baseball has several agreements in place with casinos and sportsbooks and could see the deal with Facebook as “additive to their overall ambitions.”
FB Price Action: Facebook shares are up 0.70% to $382.05 Wednesday. Shares hit a new 52-week high of $384.33.
Photo: courtesy of Facebook
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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