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DraftKings has overtaken FanDuel as the US online sports betting and iGaming market leader, according to estimates from Eilers & Krejcik Gaming (EKG).

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DraftKings currently holds a US online gambling market share of 31% of GGR, according to the estimates, while Flutter-owned FanDuel’s share has slipped to around 30% in the current quarter.

The operator has been growing its overall market share steadily since the acquisition of Golden Nugget Online Gaming (GNOG) in 2022, EKG said.

In addition to the acquisition, which provided the operator with a solid footing in the iGaming sector, DraftKings boasts a solid product, improving hold rates in sports betting and enhanced operational execution, allowing it to increase the value generated per customer in recent quarters, EKG said.

FanDuel dominance slips

At the same time as DraftKings has improved its share of US online GGR, FanDuel’s dominance has continued to slip, as its market share has dipped from well over 35% at the end of 2022, EKG added.

As a result, DraftKings has had the opportunity to overtake the previously dominant brand, especially in online sports betting, where the brand “is rapidly closing the GGR share gap in key states including New Jersey.”

Overall, EKG suggested that “DraftKings’ ability to reel in FanDuel (using more than just brute-force spending) speaks to a company that is stepping away from squishy narratives (e.g. NFTs, media) and harnessing the power of more focused, disciplined execution.”

Still, the top spot in US online gambling remains hotly contested, EKG pointed out, as FanDuel maintains the opportunity to execute and spend its way back into pole position.

Runners up

DraftKings’ new-found dominance has also taken place “during a period when the competitive landscape was unusually soft,” EKG added, with competitor firms including BetMGM and Caesars significantly curtailing their marketing spend between 2022 and 2023.

Indeed, lacklustre performance from the next-best performing companies in US online gambling has been evident since around mid-2022.

At that point, DraftKings and BetMGM appeared neck and neck with a little over 20% market share each.

Since then, BetMGM’s market share has dropped to just over 15% while DraftKings’ dominance has continued to grow, according to EKG’s estimates.

Meanwhile Caesars and BetRivers, in fourth and fifth positions, have held onto a modest market share of a little over 5% each over the past two years.

It should be noted that newcomers to the market, such as ESPN Bet and Fanatics, still have the opportunity to shake things up and “could reshape the national GGR share landscape in the next 12-24 months,” according to EKG.

Share performance

DraftKings’ improved performance has been reflected in the price of its shares, which have shot up by more than 118% in the past 12 months, to $28.89.

In January this year, shares in the operator traded for just over $11.

Meanwhile, shares in FanDuel owner Flutter have also grown by 22% over the past year, but it is worth noting they are down by more than 18% over the past six months following a peak in May.

DraftKings share price

Flutter Entertainment share price

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