US SPORTS BETTING IN 2023
ONLINE MARKET SHARE
FanDuel might command the lion ’ s share of the US sports betting market – but will today ’ s dominant brand stay in pole position ?
PART 3
FANDUEL HAS BECOME the clear market leader in terms of online sports betting . Other operators may have managed to generate a similar market share of handle in some states , but FanDuel ’ s structurally higher margin , which is due to a superior parlay betting product and arguably best-in-class risk management , has led to a substantial market share lead in terms of gross win ( see Fig 13 ).
While the focus is on gross win , a number of states split out promotional
45 40 35 30 25 20 15 10 5 0 activity and share of net revenue is the key metric . Looking at a state such as Pennsylvania shows that there can be material discrepancies between the share of sportsbook handle , gross win and net win between operators ( see Fig 14 ).
A number of operators have recently announced they are leaving the US sports betting market , as it has proven very difficult to achieve medium-term profitability as a sub-scale operator .
Fig 13 : US online sports betting : rolling three-month market share by operator (%)
50
Jan-19 Mar-19
May-19 Jul-19
Sep-19 Nov-19
Jan-20 Mar-20
May-20 Jul-20
Sep-20 Nov-20
Jan-21 Mar-21
May-21 Jul-21
Sep-21 Nov-21
Jan-22 Mar-22
May-22 Jul-22
Sep-22 Nov-22
Barstool (%) BetMGM (%) BetRivers (%) Caesars / WMH (%) DraftKings (%) FanDuel (%) Fox Bet (%) Others (%)
Source : State Gaming Boards , Company Reports , H2 Gambling Capital , January 2023
16