FanDuel Gains Market Share in July Ahead of Football Season

Although the United States is recognized as a leading and competitive sports betting market, considering that nearly 40 states offer the activity and there are more than a dozen operators offering their services, a duopoly continues to hold a major stake in the vertical.

FanDuel and DraftKings continue to hold a significant share of the sector which is estimated between 70% and 80%. The constant race sees the former take the lead in some states, while in others, the latter takes the leadership. While traditionally the summer months are slower for bookmakers, considering that there are fewer sports events, this year was an exception considering the 2024 Olympics.

Now, according to an analyst, FanDuel’s market share marked an increase when compared to DraftKings, after most of the states released their results for July. Jeffrey Stantial, an expert analyst with Stifel, who was recently quoted by Casino.org, revealed that FanDuel and DraftKings retained the duopoly model this summer.

Yet, according to the expert, FanDuel’s online sports betting (OSB) market share marked a slight increase when compared to DraftKings. Stantial said that this was the case considering the seasonality of the vertical and a potential increase in promotions.

According to the analyst, citing handle data, DraftKings lost the biggest market share in July. He estimated that the leading gaming and betting operator ceded approximately 3% in some jurisdictions. He explained that while the market share within the iGaming vertical retained balance, BetMGM and Caesars Sportsbook also lost handle share this July.

“FanDuel appears to have regained market share in July with OSB handle share up +0-3% month-over-month in most states – consistent with seasonality observed last year, though potentially also a function of higher promo reinvestment,“

explained Jeffrey Stantial, an expert analyst with Stifel

The Betting Race Continues

The 2024 National Football League (NFL) season is set to start this week. The new season will kick off on Thursday, September 5 and run through Sunday, February 9, 2025. In light of the upcoming football season, sportsbooks are expecting busy months ahead as it attracts the highest number of wagers out of any other sport in the country.

Not unexpectedly, betting operators would focus on promotions to help attract new customers or retain existing bettors.

In that line of thought, Stantial explained: “Based on the three ‘mature’ and competitive states that have reported July OSB promotional figures, reinvestment by operator ranged 1-6% of handle – up +10 basis points month-over-month and flat year-over-year on average.” He added that it was interesting to see FanDuel reinvest up “~80 basis points year-over-year (as a % of handle) on average, with DraftKings up a more modest ~40 basis points.”

Undoubtedly, the betting race between DraftKings and FanDuel will continue. Still, this doesn’t mean that other operators won’t try to gain further market share in light of the upcoming football season. In fact, the 2024 NFL season would mark the first complete football season for both Fanatics and ESPN Bet.