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FanDuel continued to gain US online betting market share in April as it accounted for 48% of the country’s regulated betting GGR, according to analysts at JMP Securities.

JMP released its latest Proprietary Online Sports Betting Dataset today (5 June), outlining the latest trends in the US online gaming market.

The analysts said FanDuel gained around 350 basis points (bps) of OSB market share in April, while margins continued to accelerate compared to Q1.

FanDuel has maintained a lead over its principal competitor DraftKings throughout the first half of the year, with the two rival DFS giants still vying for market leadership.

The Flutter-owned operator has taken GGR market share from DraftKings, as well as Rush Street Interactive and Caesars, since the beginning of the year.

This, JMP said, came despite DraftKings increasing its share of betting handle through the Q2 period.

In the iGaming sector, BetMGM saw positive market share momentum as it grew 32 bps from Q1, or 61 bps month-on-month.

JMP said DraftKings lost the most iGaming market share in April compared to Q1, falling 105 bps.

The analysts said: “Overall, we see FanDuel, BetMGM, and Sportradar as best positioned in Q2.”

In terms of app downloads, JMP said overall downloads from major US operators were up 60% year-on-year.

Digging deeper, downloads of both DraftKings and FanDuel were up compared to the previous month, while on a year-on-year basis, FanDuel downloads were up 44%, Caesars up 40% and DraftKings up 73%.

JMP highlights reduced promo spend in May

In terms of promotional activity, JMP said promos as a percentage of handle were down year-on-year but remained at rational levels.

Odds boosts accounted for 47% of total promotions in May, the analysts said, with the average bettor wagering $85 in free promos during the month.

JMP also highlighted May was another month of strong handle volumes, with handle-per-bettor increasing 16% year-on-year, according to Juice Reel.

The analysts added: “Industry gaming margins have rebounded to nearly all-time high levels of 10% QTD (Citizens JMP estimate) led by FanDuel, trailing only 10.5% in 3Q22.

“Noise around regulatory impacts in online gaming has created a shadow over several exposed companies, but fundamentals, led by strong handle growth and gaming margins at ~75% flow-through, are supporting revenue ahead of our expectations in the quarter.”

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