Posted on: August 17, 2023, 04:43h.
Last updated on: August 17, 2023, 04:43h.
The US sports betting landscape is dominated by Flutter Entertainment’s FanDuel and DraftKings, and recent data suggests that DraftKings is gaining market share.
In Stifel’s latest edition of the Online Gambling Monthly Tracker, analyst Jeffrey Stantial reveals that DraftKings has been steadily increasing its market share in the US online sports betting industry.
DraftKings has been the primary winner, with June data showing another step function in handle share (partially offset by unfavorable hold) reflecting the improved product-driven customer retention into MLB season,” wrote the analyst.
According to Flutter, FanDuel currently holds a 47% share of the regulated internet sports betting market in the US, followed by DraftKings. Together, these two operators command around 75% of the market.
DraftKings, Others Making iGaming Gains
While sports wagering garners more attention due to its legality in more states, iGaming is considered the future growth driver of the gaming industry.
Operators such as Caesars, DraftKings, and FanDuel are gradually taking market share from BetMGM in the iGaming segment.
Stantial notes, “On the iCasino front, we’ve seen recent trends of operators like DraftKings, FanDuel, and Caesars taking share, primarily from BetMGM. This month, we highlight the first month-over-month increase in market share for BetMGM following seven consecutive months of contraction.”
DraftKings’ acquisition of Golden Nugget Online Gaming (GNOG) positions the company for further success in iGaming. It is currently a leading operator in several states where GNOG was previously active.
Notable iGaming and Online Sports Betting Updates
Stantial highlights several factors investors should keep an eye on in the near term.
“1) the November launch of PENN’s ESPN Bet & associated marketing/promotional campaign, 2) Fanatics’ integration and rollout of the acquired Pointsbet platform, 3) the launch of a standalone Caesars iCasino app, 4) DraftKings’ rollout of in-house priced NFL live SGP this season, 5) BetMGM’s integration of Angstrom Sports and related improvements to parlay & in-play product, and 6) WynnBet and Fox Bet closures (collectively only LSD-MSD% market share),” concluded the analyst.
Fanatics recently launched its mobile sports betting platform in four states. While promotional spending in the industry is currently reasonable, there are concerns that increased competition from Fanatics and the upcoming launch of ESPN Bet by Penn Entertainment could lead to heightened promotional spending.
Stantial acknowledges the possibility of increased spending but believes it will not reach the levels seen in late 2021 and early 2022 that worried investors.