US SPORTS BETTING IN 2023
Fig 14 : Pennsylvania online sports betting : rolling three-month market share by operator (%)
80
70
60
50
40
30
20
10
0
Jan-21 Feb-21
Mar-21 Apr-21
May-21 Jun-21
Jul-21 Aug-21
Sep-21
Oct-21
Source : State : State Gaming Gaming Boards , Company Boards Reports , Company , H2 Gambling Reports Capital , January H2 Gambling 2023 Capital , January 2023
HOW WILL US SPORTSBOOK MARKET SHARE EVOLVE ?
In terms of how market share may evolve over time , if we look at mature online sports betting markets , many of them have a high level of concentration of leading operators .
Nov-21 Dec-21
Jan-22 Feb-22
Australia has the highest concentration of market share , with the top operator ( Sportsbet – Flutter ) having grown organically to achieve 43 % market share and the top three operators achieving 81 % market share .
Mar-22 Apr-22
May-22 Jun-22
Jul-22 Aug-22
Sep-22 Oct-22
Nov-22
DraftKings handle DraftKings GGR (%) DraftKings net win (%) FanDuel handle (%) FanDuel GGR (%)
Fig 15 : Market share concentration
100 %
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0 %
11 %
4 %
15 %
23 %
43 %
11 % 4 %
12 %
16 %
18 %
40 %
FanDuel net win (%)
Australia UK France Italy US
19 %
7 %
12 %
15 %
22 %
25 %
Market leader Number 2 Number 3 Number 4 Number 5 Others
Source : State Gaming Boards Company Reports , H2 Gambling Capital , January 2023
41 %
11 %
11 %
12 %
13 %
13 %
13 %
8 %
11 %
25 %
40 %
Flutter also has the highest market share in the UK at 40 %, although this was built through M & A between three major brands ( see Fig 15 ).
While Italy remains a relatively fragmented market , this has always been the case . The US market , on the other hand , appears more likely to have a similar market concentration to that of Australia or the UK in the medium term .
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
IS THE PODIUM FOR US BETTING POSITIONS FIXED ?
However , that is not to say that the current market leaders will remain the same . In the UK and Australia , there have been shifts in market share over time as certain operators have garnered substantial market share from nothing . There is no reason that one of the leading brands in the US over time could be one that is not currently one of the top five or even top 10 operators .
Market share change can evolve slowly over time , or it could be the result of a specific event . In the UK , Sky Bet became a market leader through its focus on mobile betting , while in Australia , Entain became a market leader through M & A activity .
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