5 min read

Welcome back to our latest edition of Market Insights with Sanjeev Kaushik.

The online sports betting and iGaming industries are rapidly evolving, and the stakes have never been higher.

In this edition, we dive deep into the latest trends, competitive shifts, and market dynamics shaping this exciting space.

Read on to learn which companies are paving the way for the future of U.S. online betting and how you can capitalize on this booming industry.

1. The U.S. Betting Scene: Who’s Making Waves?

The U.S. online sports betting (OSB) and iGaming markets are on fire — dynamic, fiercely competitive, and expanding at breakneck speed.

With data sourced directly from state gaming commissions across 29 states, a fascinating story unfolds: market share battles, strategic promotional plays, and shifting customer sentiments that reveal the pulse of this high-stakes industry.

What’s really driving the growth? Who’s leading the pack, and who’s struggling to keep up?

1.1 Betting Against the Odds

The online sports betting (OSB) market has proven its resilience, posting a remarkable 78% year-over-year (YoY) increase in same-state gross gaming revenue (GGR) for November 2024.

This impressive rebound follows a softer October, where YoY growth dipped to -14%. The November 2024 surge was fueled by more favorable sports outcomes compared to the unusually customer-friendly results of November 2023.

When factoring in new state launches, overall GGR growth skyrocketed to 89% YoY. However, challenges persist, including fluctuating win margins, as evidenced by trends in New York (NY) during the final week of November and into December.

1.2 The Titans of Online Sports Betting

FanDuel (LSE: FLTR)

FanDuel continues to dominate the online sports betting (OSB) market, commanding a 47% net gaming revenue (NGR) market share in November. While its gross gaming revenue (GGR) share contracted by 3 percentage points (pp) month-over-month (MoM), it still posted a 2pp increase year-over-year (YoY). The brand’s edge lies in its robust win margins, fueled by features like parlays and an optimized product mix. However, rising competition suggests FanDuel’s leadership is being tested.

DraftKings (NASDAQ: DKNG)

DraftKings gained significant momentum in November, increasing its GGR market share by 4pp MoM to reach 34%. Although its YoY market share remained steady, the brand has made strides in narrowing the win-margin gap with FanDuel. Strong performance and strategic execution in November suggest DraftKings is well-positioned to continue its upward trajectory.

BetMGM (NYSE: MGM)

After weathering earlier market share losses, BetMGM is showing signs of stabilization and progress. The joint venture between MGM Resorts and Entain recorded a 1pp MoM gain in OSB GGR and a 1.5pp increase in iGaming GGR in November. Despite recent declines in its net promoter score (NPS) and net purchase intent (NPI), BetMGM’s ongoing investments and product enhancements point to a promising future.

1.3 iGaming: A Growing Market

iGaming is on a roll, showing strong growth that outpaces expectations. In November, same-state gross gaming revenue for iGaming rose by an impressive 30% YoY, beating the 2024 year-to-date average growth of 27%.

Leading the charge is Flutter, which has maintained its top position with a steady 28% market share. DraftKings follows closely with a 25% share, though it saw a slight dip of 1 percentage point (pp) compared to October. Meanwhile, BetMGM has been gaining ground, increasing its market share by 1.5pp to reach 21%.

This growth reflects the increasing popularity of online casino games, as more players embrace digital entertainment. iGaming operators are leveraging new features, better promotions, and enhanced user experiences to attract and retain customers. With competition heating up, each leader is sharpening its focus on innovation and customer satisfaction to stay ahead in this thriving segment.

1.4 Emerging Trends and Market Dynamics

Promotions: A Double-Edged Sword

Promotional activities are shaping the U.S. online sports betting (OSB) market in a big way. These campaigns are great for attracting new customers, but they also inflate gross gaming revenue (GGR) figures since bonuses and free bets are included. For industry leaders like Flutter and DraftKings, the challenge lies in finding the sweet spot — leveraging promotions to grow their customer base while keeping profitability intact.

What Customers Are Saying

Customer feedback paints a revealing picture of the leading brands. According to data from HundredX, FanDuel and DraftKings are the frontrunners in customer satisfaction metrics like Net Promoter Score (NPS) and Net Purchase Intent (NPI). However, not everything is smooth sailing — FanDuel saw a slight dip in December. Meanwhile, BetMGM, after making progress earlier in 2024, experienced a decline in customer perceptions during Q4. The data underscores how customer sentiment can fluctuate, impacting brand loyalty.

New Players Stirring the Pot

The market isn’t just about the big names anymore. Recent entrants like ESPN Bet (Disney: NYSE: DIS) and Fanatics are starting to disrupt the space. Fanatics, for instance, gained 2 percentage points (pp) in GGR market share YoY in November, while Bet365 improved by 1pp. However, these gains often come with a price — aggressive promotional spending that could put pressure on long-term profitability.

The competition is heating up, and the interplay between established leaders and ambitious newcomers is creating an ever-evolving market that rewards innovation, customer focus, and strategic thinking.

1.5 Future Outlook

The U.S. OSB and iGaming markets are on an upward trajectory, driven by state-level expansion, innovative product offerings, and increasing customer adoption.

While market leaders like Flutter, DraftKings, and BetMGM continue to dominate, new entrants and smaller players are creating a more competitive landscape.

Investors and industry watchers should keep an eye on:

• State-level performance trends: Emerging markets like Ohio and Kentucky are key to future growth.
• Promotional strategies: Operators need to balance customer acquisition with profitability.
• Customer satisfaction metrics: NPS and NPI data provide insights into brand strength and potential market share shifts.

As the industry evolves, opportunities abound for both established players and newcomers willing to innovate and adapt.

(This article was originally written on Jan 18, 2025)