DraftKings Uses Strong Q3 to Surpass FanDuel as Biggest Sports Betting Site

After some time and patience, DraftKings recently surpassed rival FanDuel to become the most popular among the top sports betting apps.

During a recent Quarter 3 earnings call, DraftKings revealed that it had achieved a 31% revenue market share, surpassing FanDuel to become the top sportsbook in the U.S. market. FanDuel, on the other hand, saw its market share drop to 30%.

DraftKings’ success was greatly influenced by a highly successful three-month period that concluded on September 30th.

CEO Jason Robins attributed our outstanding third-quarter results to the successful product and technology investments we have made, along with the exceptional preparation and execution of our entire organization. He highlighted the new and unique features and functionality that have enhanced the user experience for our mobile sports betting and iGaming customers, leading to sustained engagement.

The Q3 findings

DraftKings’ most recent quarterly report surpassed analysts’ expectations despite the high level of competition in the U.S. iGaming industry.

In the third quarter, DraftKings saw a significant revenue increase of 57% year-over-year, generating $790 million compared to $502 million in Q3 of 2022.

The London Stock Exchange Group analyzed the projected figures for the sports betting provider and determined that the expected earnings would be $706.8 million.

The growth of DraftKings during the third quarter was primarily driven by its expansion into Kentucky sports betting.

In Q3, DraftKings saw a 40% increase in monthly unique players compared to the previous year, with a total of 2.3 million reported.

In the third quarter, the average revenue per monthly unique player reached $114, marking a 14% rise compared to the previous year’s same period.

Results of the findings

DraftKings has increased its full-year revenue projections after exceeding expectations in Q3. Previously forecasted to be between $3.46 billion and $3.54 billion, the company’s revenue guidance for the year is now between $3.67 billion and $3.72 billion.

DraftKings saw a significant increase in its EBITDA, rising from $95 million to $115 million to $190 million to $220 million.

After releasing its Q3 figures, DraftKings saw a 7% increase in its share price, with the stock trading at slightly above $31 per share as of Friday morning.

ESPN Bet and Fanatics are coming

While becoming the top player in the U.S. market ahead of FanDuel is a significant achievement, it is important to acknowledge that new challenges are on the horizon.

The highly anticipated launch of ESPN BET is scheduled for Nov. 14, with a large number of sports bettors and experts predicting it will have a significant impact. A survey conducted by Odds Assist of 1,000 American bettors revealed that 54% are open to trying ESPN BET. Additionally, 46% of respondents believe that ESPN BET has the potential to become the top player in the American market.

Fanatics, the highly sought-after distributor of branded clothing, is steadily expanding its influence within PointsBet’s U.S. market. With a vast customer database and unparalleled reach, Fanatics’ presence in the U.S. is unlike any other.

Analysts and the company itself are well aware that DraftKings is a top player in 23 states across the country, including the recent additions of Kentucky and Maine for sports betting.

DraftKings’ rise to the top is no accident. With its ambitious expansion strategies and dedication to maintaining its position as one of the premier sports betting sites in the American market, unseating it will be a challenging task.