Week six of the 2023 NFL season is within the books, and with a document variety of states allowing regulated sports activities wagering, it’s not stunning that the deal with is on the rise. Information additionally point out that DraftKings (NASDAQ: DKNG) has been including market share for the reason that begin of the soccer season.
A DraftKings billboard seems at Occasions Sq. in New York Metropolis after the corporate went public in April 2020. The operator is gaining iGaming and sports activities betting market share, says an analyst. (Picture: NASDAQ)
In a brand new report back to shoppers, Stifel analyst Jeffrey Stantial noticed that the US sports activities wagering deal with “accelerated properly” into soccer season and, as anticipated, DraftKings is the most important winner concerning market share gained. FanDuel, a unit of Flutter Leisure (OTC: PDYPY), and DraftKings are the highest two operators in US sports activities wagering share, accounting for greater than 70% of the market.
We reiterate our Maintain-rating on DKNG for now as whereas latest market share momentum and product execution is extremely encouraging, we imagine forthcoming aggressive product launches/enhancements might current a greater entry level,” wrote Stantial.
Shares of Boston-based DraftKings are greater by 166.77% 12 months to this point, making it certainly one of 2023’s best-performing gaming equities.
On-line Sports activities Betting Competitors Stays Fierce
If there’s one factor the US sports activities wagering trade is thought for, it’s competitors. Over the previous a number of years, the duopoly established by FanDuel and DraftKings has claimed a number of victims, together with operators who threw within the towel and others who opted to promote themselves.
DraftKings has constructed an enviable moat that’s allowed it to thrust back a viable competitor in Caesars Sportsbook. That standing is all of the extra vital at a time when Fanatics and Penn Leisure (NASDAQ: PENN) with ESPN Wager wish to problem the FanDuel/DraftKings duopoly.
Stantial identified that Fanatics is off to a stable begin, however that’s largely attributable to heavy promotional spending, a tactic that may threaten profitability. Penn’s ESPN Wager is slated to debut in November.
“Whereas too early to low cost both potential disruptor, we imagine largely secure share for DraftKings/FanDuel in a battleground state with excessive spending disruptors is notable, particularly because the market continues to grapple with the upcoming ESPN Wager launch,” added the analyst. “We glance to forthcoming October Kentucky knowledge and preliminary North Carolina leads to 2024 as even higher measuring sticks for market share normalized for first mover benefit.”
DraftKings Sports activities iGaming Success, Too
Whereas iGaming is reside and authorized in simply six states, far fewer than the 35 allowing sports activities betting, analysts and operators stay enthusiastic concerning the long-term progress trajectory for on-line casinos.
At present, Michigan is the one state that releases operator-level knowledge. There, it seems that DraftKings and FanDuel are grabbing market share from BetMGM. Stantial famous Caesars Leisure (NASDAQ: CZR) is one other identify that would enhance iGaming market share going ahead.
“Trying ahead, we proceed to watch Caesars as a possible share winner given the launch of a standalone iCasino app and different enhancements to product and omnichannel advertising and marketing execution,” concluded the analyst.
