DraftKings has managed to leave behind its toughest competitor, FanDuel, in the U.S. online gambling space. This is after the company took over Golden Nugget Online Gaming and has since been witnessing increased growth.
As per the information released by Eilers & Krejcik Gaming, the third quarter saw DraftKings obtaining 31% of the overall revenue generated through the U.S. online gambling arena. FanDuel, on the other hand, managed 30% revenue collection. The figures involve sports betting, as well as online casino games. FanDuel has stayed ahead with a market share of 39.3% if one were to focus just on sports betting. With DraftKings, it is 34.1%.
Following the Supreme Court ruling in 2018, opening the doors for sports betting beyond Nevada, the entire online betting space changed utterly. 36 states introduced regulated sports betting, leading to more than $10 billion in revenue generation in 2022.
Initially, FanDuel had the advantage as it is an affiliate of Flutter Entertainment, a bookmaker in Ireland. They managed to further their position by providing one-of-its-kind bets called parlays. With DraftKings offering the same kind of betting opportunities, its popularity began slipping downwards. James Kilsby of Vixio Regulatory Intelligence attributed the decline in the market share of FanDuel for this very reason.
In the meantime, DraftKings began to expand its business in the online casino space in places like New Jersey and Massachusetts. In the upcoming times, more players will join the fray, such as Fanatics and ESPN Bet, and shake the current market positionings.
According to the Co-Founder of DraftKings, Matt Kalish, they aim to hold onto their current position, but he strongly feels there is a lot more for the company to do with all its potential.
DraftKings will be coming out with its financial results on the 2nd of November, 2023. The company’s stock value has increased by more than 144% in 2023. This is due to the company spreading its overall footprint and proper management systems being in place.