Published on: December 4, 2024, 04:55h.
Last updated on: December 4, 2024, 04:55h.
DraftKings and Fanatics dominate the US online sports betting market, holding a duopoly that controls over 70% of total wagers. However, some competitors are gaining ground in key segments.
Morgan Stanley’s third biannual sports betting survey highlighted Penn Entertainment’s ESPN Bet as popular among bettors aged 21 to 34. Morgan Stanley surveyed 3,000 sports bettors across different age groups, with ESPN Bet having the highest user percentage in the 21-34 demographic at 44%, narrowly beating bet365 at 43%.
On the other hand, BetMGM and Caesars Sportsbook are favored by baby boomers, as these operators link their online sports betting offerings to land-based casinos. Clients can earn tier credits and points in loyalty programs that can be redeemed at physical properties.
Importance of Younger Bettors
The industry targets young bettors as they show higher engagement levels. Sixty percent of bettors aged 21-34 place at least three sports wagers per week, exceeding the average of 47% for all age groups. Young adults also have larger average bet sizes, with $58 compared to the overall average of $49.50. Baby boomers are more conservative, averaging $31 per sports bet.
Young bettors also have a preference for parlays, including same-game parlays. Around 60% of 21-34 year-olds surveyed by Morgan Stanley said parlays are their favorite type of wager.
The industry sees the potential in promoting parlays to a wider audience, not just limited to young bettors, due to their high hold percentages.
Rise of Female Bettors
Women are increasingly participating in sports betting, with Fanatics having a significant share among females. According to Morgan Stanley, women now make up nearly a third of the overall domestic sports betting market, with an average bet size slightly higher than men’s.
However, the news of Fanatics gaining share among female bettors has sparked controversy online, with some speculating it could be due to bet size limits imposed on male bettors. Fanatics, like other sportsbooks, has faced accusations of limiting winning players.