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%.
21+ (18+ D.C.) and present in AZ, CO, CT, DC, IA, IL IN, KS (in affiliation with Kansas Star Casino), KY, LA (excluding certain perishes), MA, MD, MI, NC, NJ, NY, OH, PA, TN, VA, VT, WV, or WY. Void where prohibited. Bet & Get offer: first online real money wager only. $5 first deposit required. Bonus issued as nonwithdrawable bonus bets that expire 7 days after receipt. Restrictions apply. See terms at sportsbook.fanduel.com. Call 1-888-789-7777 or visit ccpg.org/chat (CT) or visit FanDuel.com/RG. Data & text rates may apply. NFL Sunday Ticket offer from YouTube and YouTube TV: Offer ends 9/22/24. After 3 weeks free trial, the full price of NFL Sunday Ticket will be automatically charged seasonally; cancel anytime. No refunds. Terms, restrictions, and embargoes apply. YouTube TV base plan required to watch YouTube TV. Redemption requires a Google account and current form of payment. Gambling Problem? Call 1-800-GAMBLER. Hope is here. GamblingHelpLineMA.org or call (800) 327-5050 for 24/7 support (MA). Visit www.mdgamblinghelp.org (MD). Call 1-877-8HOPE-NY or text HOPENY (467369) (NY).
21+ only (18+ DC/KY/NH/WY). New customer only. Must be physically present in AZ/CO/DC/CT/IL/IN/IA/KS/KY/LA(select parishes)/MA/MD/ME/MI/NC/NJ/NY/OH/PA/TN/VA/VT/WV/WY only. Void in ONT/OR/NH and where prohibited. Eligibility restrictions apply. 1 per new customer only. Min. $5 deposit. Min. $5 bet. Get 1 promo code to redeem 1-month of access to NFL+ Premium and max. $250 issued as non-withdrawable Bonus Bets that expire in 7 days (168 hours). Stake removed from payout. Offer expires 9/19/24 at 11:59 PM ET. Terms: draftkings.com/sportsbook. NFL+ Premium Terms: Offer only for eligible subscribers & must be redeemed by 11:59PM 9/30/24; After 1-month promo period, subscription automatically renews each month at then-current price (currently $14.99/mth) until cancelled; Addt’l terms: nfl.com/terms. On behalf of Boot Hill Casino & Resort (KS). Please Gamble Responsibly. Call 888-789-7777/visit ccpg.org (CT), or visit www.mdgamblinghelp.org (MD). Data & text rates may apply. GAMBLING PROBLEM? CALL 1-800-GAMBLER, (800) 327-5050 or visit gamblinghelplinema.org (MA). Call 877-8-HOPENY/text HOPENY (467369) (NY).
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.
Must be 21 or older and physically present in AZ, CO, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, NJ, NY, NC, OH, PA, TN, VA, WV, or WY. Void where prohibited. New users only. Must register using eligible promo code. First bet after registration must qualify. Max. Bonus Bet: $1,000 (amount equals to lost stake). Bonus Bet expires 14 days after receipt. Void where prohibited. See Caesars.com/promos for full terms. Know When To Stop Before You Start®. Gambling Problem? CO, IL, KY, MD, MI, NJ, OH, TN, VA, WV, WY, KS (Affiliated with Kansas Crossing Casino), LA (Licensed through Horseshoe Bossier City and Harrah’s New Orleans), ME (Licensed through the Mi’kmaq Nation, Penobscot Nation, and Houlton Band of Maliseet Indians, federally recognized tribes located in the State of Maine), NC (Licensed through Tribal Casino Gaming Enterprise), PA (Affiliated with Harrah’s Philadelphia): If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2537) or MD: visit mdgamblinghelp.org or WV: visit 1800gambler.net; AZ: Call 1-800-NEXT-STEP; IN: Call 1-800-9-WITH-IT; IA: Call 1-800-BETSOFF. Data & text rates may apply. Gambling Problem? Call 1-800-GAMBLER. Hope is here. GamblingHelpLineMA.org or call (800) 327-5050 for 24/7 support (MA). Call 1-877-8HOPE-NY or text HOPENY (467369) (NY).
21+ only. First Bet Offer for new customers only. Min. first deposit of $10. Subject to eligibility requirements. Rewards are non-withdrawable bonus bets that expire in 7 days. Bonus bets amount equals lost stake up to $1500. Must be physically located in NC, NJ, IN, WV, DC, CO, PA, MI, IA, AZ, LA, TN, IL, VA, MD, MS, WY, MA, KS, OH, or KY. Void where prohibited. In partnership with Kansas Crossing Casino and Hotel. See BetMGM.com for Terms. US promotional offers not available in Mississippi, New York, Nevada, Ontario, or Puerto Rico. Please Gamble Responsibly. Call 1-800-NEXT-STEP or text NEXTSTEP to 53342 (AZ), 1-800-BETS-OFF (IA), 1-800-981-0023 (PR). Data & text rates may apply. Gambling problem? Call 1-800-GAMBLER (Available in the US) Call 877-8-HOPENY or text HOPENY (467369) (NY) Call 1-800-327-5050 (MA).
