FanDuel triumphs in Q4 2023 as leader of US online gambling market

Lea Hogg March 6, 2024

SiGMA news

FanDuel triumphs in Q4 2023 as leader of US online gambling market

Flutter Entertainment’s FanDuel has regained its position as the leader in the US online gambling market in Q4 2023, according to a report by Eilers & Krejcik Gaming (EGK). This comes after DraftKings, its main competitor, overtook it in Q3 2023.

DraftKings had been steadily growing its market share since its acquisition of Golden Nugget Online Gaming (GNOG) in 2022. This acquisition, along with a solid product and improved hold rates in sports betting, allowed DraftKings to increase the value generated per customer in recent quarters.

However, EGK’s data for Q4 2023 showed FanDuel back on top with a combined online sports betting and iGaming market share of around 35 percent compared to DraftKings’ share of around 32 percent. FanDuel achieved this by improving its online casino GGR share to an all-time high of 23 percent, an improvement of three percentage points quarter-over-quarter.

Other notable trends include BetMGM’s consistent loss of market share over the past two years, dropping from above 20 percent in Q1 2022 to almost as low as 10 percent in Q4 2023. ESPN Bet (formerly Barstool) and Hard Rock have benefited from their recent launches, with Penn’s rebrand to ESPN Bet and Hard Rock’s exclusive sports betting access in Florida driving upticks in their market shares.

The so-called “long tail” of more than 30 smaller brands also saw its share of GGR dip to a two-year low in Q4, at just 6.6 percent.

Shifting dynamics of US online gambling

Year-on-year trends show that between Q4 2022 and Q4 2023, FanDuel’s market share dropped slightly, while DraftKings’ increased significantly. “One of the biggest storylines of 2023 was DraftKings’ catch-up growth,” EGK said. This growth was driven by factors including improved operational execution, SGP-boosted structural hold gains, and online casino expansion via Golden Nugget.

Meanwhile, BetMGM’s market share took a serious dive while Caesars and BetRivers saw just minor decreases in their modest market shares. ESPN Bet, Hard Rock, and bet365 are clearly visible as three challenger brands that are on the rise, while the long tail of “others” saw just a minor incremental increase in its market share year-on-year.

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