JMP: DraftKings Cannibalized Fanatics’ Market Share in May

Equity research specialist JMP Securities has published its US sports betting report for May, outlining slight market changes. According to the firm, DraftKings’ market share soared that month, although the company was still unable to surpass FanDuel.

As data from Indiana, Iowa, Maine, Maryland, New Jersey, New York and Kansas shows, operators recorded a 72% year-on-year increase in sports betting handle. The rise was attributed to the seasonal increase in betting around the NHL and NBA playoffs.

In the meantime, DraftKings and FanDuel continued to dominate the betting market and were collectively responsible for approximately 81% of all GGR. This marks a slight decline from the 84% recorded in April.

As mentioned, DraftKings recorded a noticeable increase in GGR, increasing its overall market share. In terms of GGR, the operator commanded control over approximately 36.2% of the market, representing an rise of 371 bps year-on-year and a sequential gain of 544 bps.

JMP noted that DraftKings’ gain was Fanatics’ loss as the latter operator saw its GGR plummet 28% in New Jersey.

FanDuel Remains at the Top

While DraftKings continued to grow its market share, FanDuel’s hegemony over the market continued, with the operator reporting market share of 44.8% in terms of GGR.

Despite a YOY decrease of 72 bps and a sequential decrease of 138 bps, the operator maintained its leadership position. Its favorable position was attributed to strong performance in a number of key states, such as Arizona, Illinois and Pennsylvania.

JMP Securities Is Optimistic about ESPN Bet

While FanDuel and DraftKings continue to dominate the market, JMP Securities also praised the performance of ESPN Bet, which continues to gain traction. Despite a market share of only 1.8%, the brainchild of Penn Entertainment and ESPN recorded a sports betting margin of 10% in the four states where it’s live. This figure notably marks a sequential increase of 228 bps and an increase of 12 bps year-on-year.

In the meantime, the market share of other major companies, such as BetMGM, Caesars and Rush Street Interactive, stood at 5.2%, 4.6% and 1.5% respectively.