United States
United Kingdom
Summary:
- FanDuel restored its online sports betting market share leadership in July.
- The giant left rival DraftKings behind thanks to a handle share up +0-3% month-over-month in most states.
- Measured by handle, DraftKing was the biggest loser of the month, dropping 3% in some markets.
According to their online sports betting (OSB) report for July, Flutter Entertainment‘s FanDuel is back in the lead when it comes to market share, leaving rival DraftKings behind and continuing the duopoly’s top spot rotation where neither drops beneath the second position in the market.
FanDuel’s OSB Handle Share Up +0-3% Month-Over-Month
July has been a lucrative month for FanDuel in most markets as the operator managed to regain its market share with OSB handle share going up between +0-3% in most US states including Washington DC where it launched earlier this year.
The results were aligned with the seasonality noticed in 2023, according to Stifel analyst Jeffrey Stantial, who also argued the “higher promo reinvestment” as a potential factor.
In the context of football being Americans’ favorite sport to weather on and sports college football kicking off over the weekend with the 2024 NFL season, expected to break records in terms of wagering, soon following suit on Thursday, it’s no surprise sportsbooks are splurging out on promotional spending.
Stantial explained that, according to data, FanDuel reinvested up approximately 80 basis points YoY as a percentage of handle on average while DraftKings reinvested around half of that.
Some experts think operators will choose to leverage promotional spending in an attempt to win over customers from larger competitors.
DraftKings Shed 3% in Some Markets in July
When measured by handle, DraftKing proved to be the biggest loser in July, as the operator dropped as much up to 3% in some markets.
On the other hand, BetMGM and Caesars Sportsbook reported modest handle share for the same month. Their iGaming market share was, however, steady.
Recently, BetMGM proved to be one of the biggest promotional spenders, with forecasts speaking of upcoming large expenditures from ESPN Bet during the 2024 season.
Stantial also thinks a larger number of smaller players could be leaving the US market in the context of legislation and regulatory changes and the risk of some states increasing gaming taxes.
