Fantasy sports apps have become very popular in recent years. Millions of users join these apps to create virtual teams, compete in leagues, and win prizes. But have you ever wondered how these apps earn money? Let’s explore in simple words how a fantasy sports app generates revenue and becomes a profitable business.

1. Entry Fees from Users

One of the main sources of income for fantasy sports apps is entry fees.

Most apps let users join contests by paying a small amount of money. These are usually called paid leagues or contests. Users pay the entry fee to participate, and the total amount collected is used to form the prize pool. However, the app does not give away 100% of the money. It keeps a commission, also known as a platform fee, from the total entry fees.

For example, if 100 users pay ₹50 each, the total amount is ₹5000. The app might keep 10–20% (₹500–₹1000) and distribute the remaining amount as prizes.

2. Advertisements and Promotions

Another big revenue stream is ads.

When an app has many users, companies want to advertise their products on it. The fantasy app shows ads between games, in banners, or during loading screens. These are called display ads. Each time a user sees or clicks on an ad, the app earns money.

There are different types of ads:

• Cost Per Click (CPC) – Money earned when someone clicks the ad.
   

• Cost Per Impression (CPM) – Money earned based on how many times the ad is shown.
   

• Sponsorships – A brand pays the app to promote their name in a special contest or league.
   

Popular apps like Dream11 or MPL earn a lot through brand partnerships and promotions.

3. In-App Purchases

Some fantasy apps offer premium features inside the app that users can buy. These are called in-app purchases.

Examples include:

• Extra stats or data to help build a better team
   

• Player performance predictions
   

• Boosters or power-ups
   

• Special badges or premium memberships
   

Even though these are optional, many users are happy to spend a little to gain an edge in competitions. This brings in more income for the app owners.

4. Subscriptions and VIP Plans

Many fantasy apps offer VIP plans or monthly subscriptions. In return, users get:

• Access to exclusive contests
   

• No ads
   

• Advanced tools and analytics
   

• Priority support
   

These subscriptions are offered on a monthly or yearly basis. If a user pays ₹299/month for a VIP plan, the app earns steady income even if the user doesn’t play every day.

Subscriptions are a smart way for apps to build regular and reliable income.

 

5. Brand Partnerships and Sponsorships

Fantasy sports apps often partner with brands or sports teams. This benefits both the app and the partner.

For example:

• A cricket team can promote the app to its fans.
   

• The app can display the team’s name, logo, or merchandise.
   

• A brand like a soft drink company can run joint campaigns inside the app.
   

These mutual deals generate money and boost the app’s reach and trust.

6. Affiliate Marketing and Referrals

Fantasy apps also earn through referral programs and affiliate marketing.

They allow users to invite their friends using referral links or codes. When a new user signs up and plays, both the referrer and the app benefit. The app grows its user base, and sometimes it earns extra revenue from partner companies.

Also, some apps promote other games, betting sites, or sports platforms. When users click those links and join other platforms, the fantasy app earns a commission.

7. Selling User Data (Ethical Usage)

While this may sound scary, many apps collect user behavior data (like favorite teams, time spent, choices made, etc.) and use it to:

• Improve the app experience
   

• Create better marketing strategies
   

• Sell non-personal data to third-party research or marketing firms
   

Note: Responsible apps follow privacy laws and do not sell personal information like phone numbers or names.

8. Hosting Sponsored Tournaments

Apps often host special tournaments sponsored by big companies. For example, a mobile company might pay the app to host a contest called “Play & Win with XYZ Phone.”

These branded contests:

• Attract more users
   

• Promote the sponsor’s brand
   

• Earn revenue for the fantasy app
   

These events are common during big cricket or football seasons and work very well for revenue.

9. Selling Merchandise

Some fantasy sports apps with large fan followings also sell:

• T-shirts
   

• Caps
   

• Team merchandise
   

• Digital collectibles (NFTs in some cases)
   

This may not be the biggest revenue stream, but it adds extra income and brand value.

10. Hosting Real-Money Games

In addition to fantasy leagues, many apps add real-money skill games like:

• Quizzes
   

• Prediction games
   

• Card games
   

These games come under the “game of skill” category and are legal in many regions. Users pay to enter, and the app keeps a share of the winnings. This is a growing trend in the industry.

Final Thoughts

Fantasy sports applications are more than just fun games. They are smart business models that use multiple ways to earn money. Here's a quick summary:

• They charge entry fees and take a small commission.
   

• They show ads and partner with brands.
   

• They offer premium features, VIP plans, and in-app purchases.
   

• They grow using referrals and run sponsored contests.
   

• Some even sell merchandise or offer other real-money games.
   

If you're thinking about starting your own fantasy sports app, understanding these revenue models is very important. With good planning, marketing, and tech support, your app can be a profitable business too.

 

Need help building a fantasy sports app?
Work with expert developers who can turn your idea into a real, money-making platform with smooth UI, high security, and all the revenue features mentioned above.

Let us help you get started!