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  • April Sports Betting Market Monitor: Single “whale” drives 23.5% NJ market share for Fanatics
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Fanatics secured a 23.5% online sports betting market share in New Jersey in March, due to the securing of a single VIP customer. 

That’s according to the latest Sports Betting Market Monitor report from Eilers & Krejcik Gaming (EKG).

The report includes several key data points and analysis from the US sports betting market, including market share statistics as well as predictions for the future of the sector.

Below, NEXT.io sets out some of the key talking points from the April edition of the report, using data up to March 2024.

Fanatics takes off in New Jersey

In this month’s Numbers to Notice segment, EKG pointed out Fanatics’ 2.9% online sports betting market share in the states where it is live, excluding New Jersey.

The figure excluded New Jersey for very good reason, as the report pointed out that the brand took a whopping 23.5% market share there in March, according to figures from the state’s regulator, the Division of Gaming Enforcement.

Fanatics generated around $20m in GGR in New Jersey in March, according to the figures, placing it firmly in second place for market share among all online sports betting operators in the state.

The position comes with a significant caveat, however, as EKG pointed to one particular reason behind Fanatics’ success in the state.

According to the report, Fanatics’ impressive New Jersey market share was driven by a swing in VIP activity from DraftKings, whose market share slipped to 20% in March and placed it behind Fanatics in the runnings.

“But perhaps most remarkably, multiple channel checks said the swing was driven largely by a single customer, described to us as ‘the biggest losing player in the regulated market by a mile,’” EKG suggested.

That kind of reliance on a single VIP customer, EKG pointed out, will inevitably inject huge volatility into the brand’s monthly results, while also bringing into question its long-term sustainability.

Still, excluding numbers from New Jersey, Fanatics continues to see an upward trend in its market share, which has approximately doubled to 2.9% since the second half of 2023.

However, those figures still show the brand has a long way to go before catching up with the top tier of US betting operators, EKG said.

Illinois parlay trends

Elsewhere, the report used data from Illinois to demonstrate market dynamics relating to parlay wagers, which offer operators the opportunity to generate significantly higher margins than single bets.

The figures showed FanDuel continued to dominate this area of the market, accounting for 51.9% of all parlay bets placed in the trailing 12 months, and generating 49.1% of all parlay GGR in the process.

Those figures did represent a year-on-year decline for the Flutter-owned brand, however, as its share of all parlays fell from 62.1%, and share of GGR fell from 57.3%, in the previous 12-month period.

Much of FanDuel’s lost parlay market share appeared to have been taken by DraftKings, whose share of parlays in the trailing 12 months grew to 36.2%, up from 28.9% in the previous year.

DraftKings’ share of parlay GGR also improved from 25.1% to 31.9% over the same period.

Average parlay bet size across the different operators listed also showed that DraftKings and FanDuel generated their large proportions of parlay GGR on betting volume, rather than bet size.

The two market-leading operators demonstrated a significantly smaller average parlay bet size than their competitors, with FanDuel’s average at $14.07 and DraftKings’ at $17.26.

In comparison to Caesars’ average parlay bet size of $55.20, for example, the average bets look very small, but the operators offset that reality through the sheer volume of parlay bets processed; more than 100 million for FanDuel and 70 million for DraftKings over the trailing 12 months.

No other operator came close to those figures over the past year, with Caesars handling just over 2 million parlays, PointsBet and ESPN Bet each handling around 4 million, BetMGM handling 5 million and BetRivers just over 7 million.

Another key statistic included in the report was the parlay hold percentage, where FanDuel also led the pack with an average margin of 21.6%. 

Both PointsBet and BetRivers achieved hold rates of more than 17%, while DraftKings managed a 16.4% margin.

Caesars’ 13.8% hold rate and BetMGM’s 12.9% put the operators at the bottom of the pile in terms of their average parlay margin.

State-by-state GGR growth

The report also sets out state-by-state GGR growth over the trailing 12-month period, compared to the previous 12 months.

Most states continued to register GGR growth over the past 12 months, with the exceptions of New Hampshire, where GGR was down 0.6%, and Washington DC, where GGR dropped 16% over the period.

Meanwhile, the fastest growing states were Arkansas, which saw a 149.4% uptick in GGR, and Louisiana, where GGR grew 77.5% year-on-year.

New Jersey and Oregon also saw growth rates of more than 40%, while GGR in Kansas jumped 34.1% year-on-year.

Nevada, Iowa, Illinois, Wyoming, Connecticut, and New York all saw growth rates of more than 20%.

Growth was most modest in Rhode Island, with GGR up 2.9%, West Virginia, up 5.9%, and Maryland, up 7.7%.

The remaining stats where data was available all registered year-on-year GGR growth of between 10% and 20%.

EKG’s monthly report provides a digest of news and data points, including forecasts, for the emerging market for regulated sports betting in the United States. Please contact managing director Chris Krafcik for more information.

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