“Big Three” Dominating U.S. Sports Betting
The U.S. sports betting industry continues to grow, but three operators are seeing the biggest benefit. Other operators are trying, but they just can’t compete with the big names.
“Big Three” Dominating U.S. Sports Betting
Now that the 2022 NFL season is back, the sports betting industry in the United States has taken off yet again. That means that states are posting record handle and revenue numbers, but not all sportsbooks are the same.
BetMGM, DraftKings, and FanDuel are the three biggest names in sports betting, and they are simply running away from the competition. This doesn’t mean that other operators aren’t a great option, but bettors continue to flock to the biggest names.
New York is the sports betting leader in the state, and these three operators have combined for about 90 percent of all of the sports betting handle. Out of this group it is FanDuel Sportsbook that is pulling away from the competition.
Since sports betting launched in New York in January 2021, FanDuel Sportsbook has generated $5.2 billion in total sports betting handle and posted a revenue of over $500 million. Those numbers mean that just over 47% of all bets in the state of New York have been placed at FanDuel Sportsbook.
DraftKings has been in second place in the state of New York with a total sports betting handle of $3.49 billion in total handle. Caesars Sportsbook is actually in third place in the state of New York, but the company has spent millions of dollars trying to bring in new customers.
Not only is FanDuel pulling away from the competition in New York, but the company has been dominant overall. FanDuel Sportsbook isn’t even operating in all of the states with sports betting, but it has still seen over 50% of the total handle.
DraftKings Looking at ESPN?
DraftKings Sportsbook is desperate to find a way to get past its top rival in this industry, and it could be looking for a major partnership to get this done. ESPN is looking for a sports betting partner after it has seen Sports Illustrated launch an online sportsbook.
Earlier this year, DraftKings saw its stock prices soar after a rumor of a partnership between the sports betting operator and the worldwide leader in sports. That deal hasn’t come to pass up to this point, but it could have a big impact on the future of sports betting.
In the meantime, DraftKings has seen its stock crater as a deal is still in limbo.
All Eyes on Ohio
2022 was a big year for U.S. sports betting, and 2023 is going to start off with a bang as well. The state of Ohio is set to launch sports betting on January 1, and the biggest operators in the industry are going to be looking to launch.
BetMGM and DraftKings have both been approved for a sports betting license already, and they are now making plans for a launch. FanDuel is also expected to be ready to go on opening day, and it should set up for another tight battle.
