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FanDuel consolidated its US GGR market share lead in Q1 2024 as it reached 46%, according to analysts at JMP Securities.

US market share by GGR

The Flutter Entertainment-owned operator saw its combined online sports betting and iGaming market share peak at 49% in January due to the impact of higher promo spend, said the analysts.

JMP added that DraftKings meanwhile saw its market share decline from 37% in Q4 2023 to 34% in the first quarter of this year.

Overall, FanDuel spent 1.7% of its handle on promotions in Q1, an increase from Q4’s 1.3%, said the analysts.

DraftKings kept its promotional spend static at 1.3% between quarters, JMP added, while overall BetMGM spent the highest percentage of handle on promos at 2%.

ESPN Bet meanwhile saw the biggest reduction, as its share of promo spend declined from 10.6% to 1.9%.

JMP added that ESPN Bet operator Penn Entertainment reported a $358.8m net loss in the aftermath of its Q4 market share blitz, which led to a drop in its share price.

ESPN Bet also saw its market share decline, falling from 5% in the final quarter of 2023 to 2% in Q1 2024, said JMP. In March 2023, the brand’s market share stood at just 1%.

Market share by handle

Market share figures by handle demonstrated the same trends but less dramatically, the analysts said.

On this basis, DraftKings’ market share declined only from 36% to 35% between Q4 and Q1.

On the other hand, FanDuel’s market share rose slightly from 38% in Q4 to 39% in Q1.

ESPN Bet stood at 5% share in terms of handle share in Q1 according to the analysts, meaning its share was stable quarter-on-quarter with a 5% share also reported in Q4.

In terms of gross gaming margins, FanDuel again led the pack as it reported an 11.6% margin in Q1, up from 9.5% in Q4.

The improvement was also reflected by DraftKings, which saw its margin rise from 9.0% to 9.7% during the period, JMP added.

JMP previously highlighted that FanDuel’s success in its parlay product could have a compounding effect on margins going forward.  

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