DraftKings Overtakes FanDuel in US Online Gambling Market
LISTEN TO THIS ARTICLE:Market research firm Eilers & Krejcik Gaming has published a report revealing that DraftKings has overtaken FanDuel to become the highest shareholder in the US online gambling market.
DraftKings had gotten approximately 31% of the gross gaming revenue reported in the third quarter through August 2023 in the United States, including online sports betting and casino gaming. Meanwhile, FanDuel's market share had slipped to 30%.
DraftKings owes its recent rise in the US betting market to its acquisition of online casino operator Golden Nugget Online Gaming in May 2022. This strategic deal has played a key role in fueling its recent growth surge.
Prior to the Golden Nugget acquisition, DraftKings briefly fell behind BetMGM in the quest for market share, holding approximately 20%, as reported by Eilers & Krejcik Gaming. However, according to the latest report, DraftKings' market share has consistently increased since then.
Meanwhile, FanDuel has experienced a decline from its peak of 37% online gambling market share in Q1 2023. However, it's worth noting that this Flutter-owned company still maintains its leading position in US online sports betting.
September Reports
This trend has also extended into September based on the data reported by states so far. For instance, in Massachusetts, DraftKings maintained its lead with $28.2m in revenue from a record handle of $290.1m. FanDuel was second with $14.1m from $121.9m in total bets.
In Iowa, FanDuel, in partnership with Diamond Jo in Dubuque, generated the highest single betting revenue at $6.0m from $52.6m in total bets. However, DraftKings has agreements with other leading casinos in the state, including the Wild Rose casinos at Jefferson, Clinton, and Emmetsburg, as well as Diamond Jo in Worth. Combined, the operator and its partners recorded a $11.4m revenue from $121.4m total bets.
According to the report, other factors may have contributed to DraftKings' new lead in the market. These include reduced marketing efforts from the third and fourth market-share leaders, BetMGM and Caesars, as well as the improvement of DraftKings' product, operational execution, and online sports betting hold.
Competitive US Market
Since regulated sports betting markets went live across several states in the US, operators have been competing for a larger slice of the lucrative gambling pie. However, despite competition from contenders like BetMGM, Caesars Entertainment, and several others, DraftKings and FanDuel have maintained their longstanding dominance in the industry and have even expanded their leads over the past year.
However, things could change with the further into the US, Fanatics' entry into the industry, and the launch of Penn Entertainment's ESPN Bet.
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