FanDuel claims the crown and leaves DraftKings behind
With its month-on-month results in Ohio, FanDuel surpassed DraftKings and other competitors.FanDuel and DraftKings are the most popular sports betting sites in the US.
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FanDuel to extend its US dominance
While the leaders in the US online sports betting market can change depending on the state, the duopoly established by DraftKings and FanDuel remains consistent.
An international sports betting and gambling company, Flutter, previously suggested that FanDuel can expand its already leading footprint in the sports betting space. One key indicator is the average revenue per monthly active user (ARPMAU). In the first quarter, FanDuel’s ARPMAU was slightly behind its competitor, DraftKings ($134 vs. $137). However, in the second quarter, FanDuel pulled ahead, signalling a shift in its favour.
Eilers & Krejcik Gaming (EKG) noted on this:
“Possible explanations in our view: FanDuel improved its Major League Baseball (MLB) parlay product (it called this out specifically at earnings), plus a relative shift of the player base from daily fantasy sports (where there was a ‘some cannibalization’ in terms of active users) to casino, where monthly unique players (MUPs) were up 30%. DraftKings decline, meanwhile, was likely affected by the inclusion of Jackpocket customers into its MUP number and thus the calculation.”
Unlike competitors like DraftKings, FanDuel has the advantage of being part of a larger, well-established company. This lets them focus on long-term growth instead of just short-term profits.With strong financial backing, FanDuel has been profitable for a while and reinvests in key areas like customer acquisition and technology.
EKG added:
“FanDuel noted payments costs had increased to ~6% of NGR, thanks in part to a faster deposit/withdrawal system that meant customers were transacting more often. That’s costing FanDuel money, but the product payoff is worth it, per CFO Rob Coldrake, because ‘customers love that feature.That type of focus on product has helped FanDuel to five straight no. 1 rankings in our OSB app testing.”
As many expected, FanDuel chose not to follow DraftKings’update on a winning tax. Although DraftKings dropped the surcharge idea, FanDuel and other competitors who avoided it may have already won over public opinion. EKG describes this as a smart move, as it likely prevented backlash from both customers and policymakers, who wouldn’t have appreciated any efforts to avoid paying taxes.
FAQs
Who are the leaders in the US online sports betting market?
The leaders in the US online sports betting market are DraftKings and FanDuel. These two companies keep dominating the market.
How does FanDuel’s performance vary from DraftKings?
In the Q2 Fanduel’s results exceeded DrafttKings’ results.
What factors contributed to Fanduel’s recent success?
FanDuel’s success is due to better MLB betting options and a shift of players from fantasy sports to casino games, leading to more active users.
Why did FanDuel choose not to join DraftKings?
FanDuel chose not to follow DraftKings update to avoid customer dissatisfaction and any negative reactions, both from players and government officials.
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