DraftKings vs. FanDuel: The Fight for Market Share
Photo Credit: FanDuel; DraftKings
Unsurprisingly, sports betting handle and revenue have cratered significantly as the entire sports industry was sidelined by COVID-19, but the quiet stretch will likely prove to be the calm before the storm between DraftKings and FanDuel.
Revenue monitor: In March, handle and revenue fell 65% and 58% month-over-month, respectively, according to Canaccord Genuity, which captured data from all states that report and have begun tracking the sports betting market across the US. The research firm found that handle and revenue fell 81% and 73% month-over-month, respectively, in April but increased 60% and 116% month-over-month, respectively, in May. (Canaccord Genuity notes that as of June 11, all active states had reported through March with several reporting April and May data as well.)
DraftKings vs. FanDuel: The two online sports betting juggernauts have a commanding share of the overall sports betting market in the key states. Several states disclose market share by vendor, including New Jersey, Pennsylvania, and Indiana. Here is a look at some data collected by Canaccord Genuity from state gaming commissions.
New Jersey: DraftKings increased its market share to 39% in March, its highest level. Meanwhile, FanDuel’s dropped to 43% from 60% a month earlier. Canaccord Genuity notes this could be due to the closing of FanDuel’s physical location at the Meadowlands Sports Complex, which accounts for about 20% of FanDuel’s revenue.
Pennsylvania: DraftKings has seized about 25% of the market as of April despite being a late entrant in the state due to delays in licensing. FanDuel has a 42% stake, as of April.
Indiana: DraftKings has maintained its leading market position in Indiana, capturing around 56% of the market in May. FanDuel had a 33% share.
West Virginia: West Virginia is dominated by both DraftKings and FanDuel. Since its launch in the state, DraftKings has captured 57% of total revenue compared to FanDuel’s 43% share.
FanDuel inks deal with Denver Broncos: FanDuel has signed a sponsorship deal with the NFL’s Denver Broncos. The agreement, announced Monday, is the first sports betting partnership announced for an NFL team since the NFL updated its rules in May to allow teams to make deals with sportsbook operators. FanDuel can now use official Broncos marks and logos to use across its online platforms in Colorado. The agreement also gives FanDuel marketing assets in the Broncos’ stadium, on the radio, and on television. FanDuel and DraftKings will likely ramp up marketing spend in an effort to attract the millions of Americans who gamble on sports to their platforms and gain market share.
Power of the NFL: In a 2019 report from the American Gaming Association, 15% of American adults said they would bet on the NFL that season. In that same report, 24% of Americans said they would like to bet on the NFL if it were legal and convenient to do so in their state. Sports betting tends to be seasonal due to the popularity of the NFL, and the league will prove to be a battleground for sportsbooks.
