DraftKings Sportsbook is undoubtedly one of the top sports betting companies in the US. We see ads for DraftKings all over our TVs.
When Ohio sports betting launched in Ohio earlier this year, DraftKings was right there to capitalize on what the operator knew was a market with big potential. However, it was FanDuel Sportsbook that had the edge in the early stages, bringing in the most handle and revenue to The Buckeye State during the first six months of legal sports betting in the state.
It wasn’t until July that DraftKings was able to turn things around and gain some authority in the market. And with a strong month in September, DraftKings’ CEO Jason Robins still sees more areas where the operator can grow in the Ohio sports betting market.
DraftKings Ohio hasn’t hit a ceiling yet
DraftKings built upon that lead in August and, after September’s revenue numbers, appears to have a firm grasp on first place.
DraftKings handled over $261.3 million in September sports bets. That’s a whopping 95% increase over what the operator handled in August ($133.8 million). Sure, the kickoff to the NFL season had a lot to do with it. However, based on the $17 million the company spent on promotional material in Ohio in September, the operator clearly sees a lot of potential in the sports betting market here.
During a recent earnings call, Robins talked about how the company’s continued growth in older markets gives them hope for newer markets like Ohio.
“Even in a state like New Jersey, which is our first state that we launched and obviously is bordering a lot of other states that have since launched, we continue to have healthy customer acquisition. So, hard to say where the ceiling is. We’re well into the double digits in terms of adult population penetration in some of our older states.”
Robins added that customer acquisition and continued growth in states like Ohio will be determined by how well DraftKings can continue to keep evolving the product.
“If we continue to make the product more appealing to a wider audience and continue to find ways to innovate to reach more customers then I think it can continue to go up over a long period of time. But certainly, at this point, we have not found the ceiling yet.”
Ohio online sportsbook competition is a 2-horse race
DraftKings has held the edge over FanDuel in Ohio sports betting handle for three straight months. But the competition between the two sports wagering giants is even tighter than most may realize.
Both operators saw massive jumps in Ohio sports betting handle and revenue. DraftKings had a somewhat bigger edge, taking $53.5 million more in online bets compared to FanDuel. Between the two, they took over 70% of the betting money in September.
Meanwhile, FanDuel, which has made the most revenue in Ohio every month since the launch of sports betting, maintains a slim lead in that department. FanDuel took $28.48 million, and DraftKings took $28.46 million in revenue. Between them, the two claimed nearly 72% of September’s online revenue in Ohio.
During the earnings call, Robins said DraftKings is performing very well and told investors to expect the operator’s highest-ever annual performance in 2024. The company’s anticipated revenue for 2024 is expected to reach $4.59 billion. If DraftKings is going to achieve that goal, then Ohio will be an important place to maintain a firm grip.