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  • FanDuel regains US market share lead from DraftKings in Q4 2023
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Flutter Entertainment-owned FanDuel returned to being the US online gambling market leader in Q4 2023, according to a new report from Eilers & Krejcik Gaming (EGK).

In recent years, the brand consistently maintained its position as the US market leader until it was overtaken by its main competitor DraftKings in Q3 2023.

At the time, EKG said DraftKings had been growing its overall market share steadily since the casino-focused acquisition of Golden Nugget Online Gaming (GNOG) in 2022.

In addition to the acquisition, which provided the operator with a solid footing in iGaming, DraftKings also boasted 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 back on top

When analysing the market in Q4, however, EKG’s data showed FanDuel back in pole position with a combined online sports betting and iGaming market share of around 35%, compared to DraftKings’ share of around 32%.

That came about as FanDuel improved its online casino GGR share to an all-time high of 23%, representing an improvement of three percentage points quarter-over-quarter.

In turn, DraftKings’ run of market share growth, occurring in every consecutive quarter from Q2 2022 to Q3 2023, also came to an end.

Looking at the rest of the chart showing the development of US operator market share since Q1 2022, several other trends are apparent.

First, BetMGM has been losing share consistently over the past two years, dropping from above 20% in Q1 2022 to almost as low as 10% in Q4 2023.

Elsewhere, Both ESPN Bet (formerly Barstool) and Hard Rock have benefitted from their recent launches in the latest quarters, with Penn’s rebrand to ESPN Bet and Hard Rock’s exclusive sports betting access in Florida both driving upticks in the firms’ market share.

The so-called “long tail” of more than 30 smaller brands which make up the rest of the market also saw its share of GGR dip to a two-year low in Q4, at just 6.6%. 

Year-on-year trends

The above trends can be seen clearly when comparing different operators’ combined share of the US online sports betting and iGaming market.

Between Q4 2022 and Q4 2023, FanDuel’s market share dropped slightly, while DraftKings’ increased significantly.

“One of the biggest storylines of 2023 was DraftKings’ catch-up growth,” EKG said, “which was driven by factors including improved operational execution, SGP-boosted structural hold gains, and online casino expansion via Golden Nugget.”

Elsewhere, BetMGM’s market share took a serious dive while Caesars and BetRivers saw just minor decreases in their own modest market shares.

Meanwhile ESPN Bet, Hard Rock and bet365 are clearly visible as three challenger brands that are on the up, while the long tail of “others” saw just a minor incremental increase in its market share year-on-year.

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