DraftKings Closing Gap on FanDuel in U.S. Sports Betting Market Share Battle

DraftKings logo displayed on a mobile phone, a basketball, and playing cards are seen in this illustration photo.

Since the 2018 Supreme Court decision to lift the ban on sports wagering, FanDuel and DraftKings have established themselves as the top sports betting sites in the U.S., leading the competition for the title of the most popular sportsbook in the country.

FanDuel and DraftKings collectively hold a 75% market share in the U.S., dominating all markets where they operate. The widespread presence of their advertisements and sportsbook promotions, including the frequent appearance of DraftKings and FanDuel promo codes during sports broadcasts, showcases the strong influence and popularity of both brands.

FanDuel, as reported in a Flutter Entertainment earnings report for the first half of 2023, holds a dominant 47% market share in the thriving U.S. market. It achieved the milestone of being the first U.S. sportsbook to record a profitable quarter last year and has continued its success with positive revenue figures for the first half of this year.

Despite being the second-place provider on the list, DraftKings is starting to narrow the gap. Over the past year, DraftKings has experienced significant growth due to its launch in Massachusetts and improved performance in New York, the top sports betting state in America.

Some interesting recent findings

In June, Publication Earnings+More highlighted the fierce competition for market dominance in the U.S. between DraftKings and FanDuel.

In the 12-month period ending in May 2023, DraftKings saw an increase in market share from 27.7% to 32%. FanDuel, which has been the top sportsbook over the past year, maintained a strong market share with a slight decrease. Statistics show that FanDuel had a 45.1% market share in May 2023, down from 45.5% in May 2022.

How DraftKings made up ground

According to the data, DraftKings has experienced significant growth, increasing by nearly 4.5 percentage points in market share over the last year. However, this growth has not come at the expense of FanDuel, as their market share has remained relatively stable during the same period.

DraftKings seems to have capitalized on the lack of growth by other top sportsbooks in the past year. BetMGM’s market share dropped from 11.1% to 9.9%, Caesars fell from 6% to 5%, and Barstool Sports went from 2.6% to 1.9%.

Massachusetts, New York help DraftKings’ cause

DraftKings’ growth in the national market share competition has aligned with its entry into the Massachusetts market and its success in capturing market share in the largest U.S. market, New York.

DraftKings has established a strong presence in its native state, capturing an estimated 51% of total gross gaming revenues in the Massachusetts sports betting apps market. With the addition of August’s sports betting numbers, DraftKings has become the sole provider in the state to exceed $1 billion in wagers since the launch of mobile betting in March 2023.

In August, DraftKings received $161.9 million out of the total $314.9 million in wagers for the state, while FanDuel only accounted for $79 million of that amount.

DraftKings saw a significant increase in wagering activity in New York, accounting for $446.9 million of the $1.12 billion August handle, marking an impressive 83% year-over-year growth. FanDuel also reported $409.1 million in bets during the same month in New York.

In a historic first, DraftKings surpassed FanDuel as the leading revenue generator in New Jersey during August. The state continues to be a model of consistency and success in the legal sports betting industry.

In August, Resorts Digital Gaming, a partner of DraftKings, generated approximately 58% of the sports betting revenues in New Jersey, earning $56.9 million in profits.

In August, the partnership between FanDuel and New Meadowlands Racetrack brought in $24.2 million in revenues, which was significantly less than what DraftKings achieved.

Not satisfied?

DraftKings has made it clear that they are not content with being in second place and are actively seeking to broaden their reach.

DraftKings participated in a bidding war for PointsBet’s U.S. assets against Fanatics Underscoreg earlier this year. Fanatics Underscoreg ultimately emerged victorious with a $225 million bid.

DraftKings began discussing a potential merger with the Fanatics brand in 2021.

In 2022, DraftKings solidified its position as the leading iGaming operator by acquiring Golden Nugget Online Gaming, propelling the company to the top spot in several competitive states.

The potential for DraftKings to increase its market share is high, even though it offers similar services and pricing as FanDuel. As the legal sports betting landscape continues to evolve, the future is uncertain.

Written By:
Perry Sandra

Perry Sandra and betting go hand-in-hand. Both are characterized by “odds”. Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn’t found a sport yet that can’t contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.