With the second fiscal quarter coming to an end, Citizens JMP Securities reports that DraftKings Sportsbook has surpassed FanDuel for national betting market share. DraftKings accepted 38% of the total betting handle for the months of April, May, and June. That number is up from 35.3% in the first quarter of the year.
Two operators dominate the industry
This isn’t the first time DraftKings Sportsbook has had the lead when it comes to nationwide market share. DraftKings and FanDuel have passed the honor back and forth over the past few quarters. FanDuel had the honors in the first quarter of the year before an impressive showing by DraftKings put them back on top.
It’s hard to even fathom another sportsbook threatening the two enormous operators at the top of the leaderboard.
DraftKings and FanDuel combined for more than 73% of the betting handle in the United States during the months of April, May, and June. If you look at June alone, the two companies accepted exactly 75% of the bets placed in the country. Of all revenue generated by operators, 79% came from the two big names at the top.
DraftKings appears to have momentum at this point. It has grown from a 35.3% market share in the first quarter to 38% in quarter two. DraftKings accepted 40% of all bets placed in June.
FanDuel Sportsbook has seen a bit of a downward trend during the same time. After controlling 37.8% of the market in the first three months of the year, it saw its market share dip to 36.5% in the next three months. June was a particularly slow month, with FanDuel accepting 35% of all wagers nationwide.
While DraftKings leads in market share, FanDuel still has a sizable advantage when it comes to gross gaming revenue. FanDuel generated nearly 46% of the industry’s revenue in the second quarter, while DraftKings came in at just under 33%.
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Other operators struggle
Of course, sports betting market share is a zero-sum game. What is gained by one party is lost by another. As FanDuel and DraftKings continue their dominance of the industry, other operators are seeing their numbers go in the opposite direction.
ESPN BET in particular. A lot was made of the major deal that saw PENN National Gaming dump Barstool Sports in favor of ESPN. Some thought the new branding could lead to ESPN challenging the big dogs. It hasn’t worked out that way thus far.
ESPN BET accepted just 3.2% of the bets placed nationwide in the second quarter of the year. This number is down from 4.7% in the first quarter, which was already viewed as disappointingly low. After a short surge when first launched, ESPN BET is basically at the same level Barstool Sportsbook was at this point last year. A deeper look raises even more concern. In the most recent month, ESPN BET had just a 1.9% market share in June.
Caesars and BetMGM lead the second tier
Caesars Sportsbook and BetMGM continue to occupy the clear second tier in the industry. Both saw their numbers dip in the past three months. BetMGM posted a 7% market share in Q2, down from 7.3% in the first quarter. Caesars saw its market share dip from 6.5% to 5.9%.
One sportsbook that did show slight growth in recent months was BetRivers. The company saw its market share rise slightly from 2.8% to 3% in the past three months. All other sportsbooks, including Bet365 and Fanatics, combined to make up less than 7% of the market.
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