A new sheriff in town
DraftKings is now the leading online gambling operator in the US in terms of market share. It has surpassed FanDuel in the rankings according to a new study from research firm Eilers & Krejcik Gaming.
DraftKings accounted for 31% of the US gambling sector’s overall revenue for Q3 2023 through August 23 in comparison to a 30% share for FanDuel. The latter has led the market since the emergence of the legal online gambling sector in 2018.
FanDuel is still the leader in the sportsbook space
The revenue figures include income from both iGaming and sports betting. FanDuel is still the leader in the sportsbook space, holding a 39% share of this market segment versus 34% for its big rival. BetMGM is the third-biggest player with over 15% market control in betting, while Caesars just about edges out BetRivers for fourth place with a slice of about 6%.
Shift in trends
Eilers & Krejcik noted that the market share trend appears to be continuing based on the September figures. DraftKings Co-Founder Matt Kalish took to X (formerly Twitter) to remark on the recent results:
DraftKings at one point saw its market share drop to about 20% in 2022, even falling below BetMGM in the rankings. The acquisition of Golden Nugget Online Gaming in May 2022 bolstered its position in the market and the operator hasn’t looked back since. FanDuel had an intimidating 37% control of the online gambling market at one point.
signals a shifting competitive landscape.”
Commenting on the latest figures, Eilers & Krejcik said that they represent a major move “that signals a shifting competitive landscape.” The firm believes that the shift will continue as ESPN Bet and Fanatics start to ramp up their operations. The former is set to launch its new offering in November through a Penn Entertainment partnership, with Fanatics still in the process of integrating PointsBet’s US offerings after acquiring the firm in July for $225m.
Changing fortunes
After coming under scrutiny for its massive marketing spend and the behavior of its CEO and Co-Founder Jason Robins, DraftKings’ fortunes have been on the rebound. Its share price is now up more than 145% for the year to date aided by its growing market share and the reigning in of its customer acquisition costs.
The operator has also made changes to its sportsbook that it believes will make it the best all-around option in the market, including improving its live betting and same-game parlay features. The next set of financial results for the company are set for release on November 2.