In the world of Ohio online sportsbooks, FanDuel has been the market leader since day one.
At least until July. Then, the Ohio sports betting revenue report saw DraftKings claim the number one spot in total money wagered with the sportsbook. This is also known as handle.
Then, the same thing happened in August.
With a slower sports calendar, sportsbooks tend to generate less revenue in the summer months. As a result, the market is waiting to see how DraftKings fares as the busy NFL season ramps up.
But Ohio isn’t the only place where DraftKings is pulling ahead of its rival FanDuel. Other states’ revenue reports and nationwide analysis suggest DraftKings could be the new top US sportsbook.
DraftKings overtakes FanDuel in Q3
In January, Fanduel Ohio was seemingly cemented its spot at the top of the market. It was the first month of Ohio sports betting. The Flutter-owned sportsbook accepted $494 million in bets to take a 45.3% market share.
On the other hand, DraftKings Ohio reported $344 million in handle. This translated to a 31.5% market share.
However, DraftKings brought in about $116.2 million in sports bets in July. According to numbers from the Ohio Casino Control Commission, the Boston-based gaming giant edged out FanDuel by less than $10 million. FanDuel reported $106.7 million in handle.
In terms of market share, DraftKings took 36.4% to FanDuel’s 33.4%.
In August, DraftKings took 36.8% of handle and FanDuel took 31.8%. That’s a positive trend for DraftKings.
Industry analysts noticed this trend in other other markets, as discussed in the Earnings + More newsletter.
The author notes that while the overall US market share of the two sports betting giants has remained pretty steady, the distribution between the two has shifted in the third quarter.
From the newsletter:
“The Q3 data from Deutsche Bank – derived from the data representing ~96% of the total market – shows FanDuel down to 37.3% market share, a drop of over 7ppts on its last 12 months market share of 44.8%.
At the same time DraftKings’ Q3 market share was half a percentage point lower than its rival at 36.8%, up from the LTM figure of 29.6%.”
Nationwide numbers from August put DraftKings at 40.6% market share for the month, while FanDuel captured 34.4%. It’s significant to note that these numbers in Ohio were no doubt fueled by football preseason Ohio betting promos — and the same can be said for DraftKings’ numbers across the country.
But, hey, FanDuel is offering promos, too.
Big shifts in major sportsbook markets
Zooming into New Jersey’s numbers for August, DraftKings grabbed the top spot in dramatic fashion. They raked in more than double the revenue of FanDuel.
In terms of gross gaming revenue, analysis by Wells Fargo estimates DraftKings took in $57 million compared to FanDuel’s $24.6 million.
On LinkedIn, Chris Krafcik of Eilers & Krejcik Gaming pointed out that while FanDuel’s New Jersey numbers were in line with their average monthly take, DraftKings’ August revenue was much higher than average.
As NJ was the only market to see such a dramatic jump from DraftKings, Krafcik suggested promos or other factors likely drove the blip in NJ, saying,
“This spike could be VIPs / whales, futures, above-average hold, promo spending increases, or a combination of those + other variables.”
In neighboring New York, another top five sports betting state, DraftKings passed FanDuel for the first time in June.
DraftKings took 42% market share that month with $488.5 million in betting volume, for an 88% increase over last June. Though FanDuel did better in the final week of the month, it saw a decline of 12% from the previous June, taking in $418.1 million in handle and 36% market share.
In July, revenues were almost equal between the two top sportsbooks in NY and in August DraftKings was on top again. Overall market share between the two increased to 80% in August.
Can DraftKings keep the streak going?
In the US, DraftKings took more than double FanDuel’s gross revenue in August. But analysts from the Earnings + More newsletter say it’s too soon to tell if DraftKings will remain the market leader going forward.
“There are some factors that need to be considered before any conclusions are reached about whether this is a long-lasting switch,” the newsletter reads. “Namely, this is August, the shoulder season for US sports-betting activity, and not the period when bettors are at their most active.”
The newsletter also points out that the movement in the rest of the market is not insignificant, and second-tier sportsbooks “pose new challenges” for DraftKings and FanDuel. The market share of other sportsbooks crept up in Q3 across the US and in Ohio, with Fanatics Ohio and Bet365 Ohio continuing to grow. ESPN Bet Ohio is also slated to hit the market next month.
“What was previously supposed to be a danger mainly for DraftKings, BetMGM and Caesars now also appears to be an issue for FanDuel, which until very recently was considered invulnerable at the top,” the newsletter reads.
For consumers, the lack of a near-monopoly on the sports betting market means companies continue to compete for your business. An active and competitive market means several quality options to choose from, and likely continuing promotions and incentives to take advantage of.