DraftKings and FanDuel's Market Position
The sports betting industry has grown enormously since the 2018 Supreme Court decision to overturn PASPA, allowing states to legalize sports wagering.
The online sports betting business is currently worth more than $10 billion, and Goldman Sachs Research projects that it could grow to $45 billion as the market matures. While this industry is in its infancy, DraftKings and FanDuel have emerged as clear leaders, with some of the higher estimates putting their cumulative market share at over 80%.
This guide will address whether either company can be described as the sole market leader, why the two operators are so far ahead of the pack, and whether there's a difference in their availability.
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Who is the Market Leader?
The best way to conceptualize the situation is to know that no single sportsbook dominates this space. Instead, FanDuel and DraftKings are in similar dominant positions, with a massive gap between those two and the rest of the pack.
In July 2024, Eilers and Krejcik Gaming found that the two leading sportsbooks have combined to accumulate approximately two-thirds of US Sportsbook gross gaming revenue (GGR). Meanwhile, other competitors like BetMGM and Caesars were unable to claim even a third of the market share held by the two top companies.
FanDuel and DraftKings dominate the U.S. sports betting market. Source: Eilers and Krejcik Gaming.
Why do DraftKings and FanDuel Have a Huge Market Share Lead?
The two companies' domination can be attributed to several key factors that have separated them from the competition.
Perhaps most importantly, both companies capitalized on their early entry into the daily fantasy sports (DFS) space, building large user bases before the 2018 Supreme Court decision lifting the federal sports betting ban. While other sportsbooks were trying to get their operations off the ground, DraftKings and FanDuel had existing infrastructures into which they could integrate sports betting.
Strategic partnerships helped them further solidify their positions. Both DraftKings and FanDuel have partnered with major sports leagues and teams, increasing their brand visibility and credibility. FanDuel signed a multi-year deal with the National Basketball Association (NBA) that allowed them to offer free months of NBA League Pass and significantly increase the value proposition of having an account with them. On the other hand, DraftKings reached a deal that allowed them to join a partnership with Major League Baseball (MLB), which included receiving a significant investment from the league.
Another factor in the two sportsbooks' dominant position is their aggressive marketing and advertising push. For instance, it's been estimated that DraftKings spends over $500 million on marketing per year, and advertising data from the first three weeks of the 2024 NFL season shows the two leaders continued to spend at a high rate.
| Sportsbook | TV Advertising Spend | Growth over the Previous Year |
|---|---|---|
| DraftKings | $36.4 Million | 22% |
| FanDuel | $27.1 Millon | 14% |
Not only did these two sportsbooks have existing users they could bring from their DFS platforms, but they have also made strong customer acquisition pushes.
What Real DraftKings Bettors Think of the Sportsbook
Overall Review of DraftKings Sportsbook App
Based on user feedback across various themes, the overall experience with the DraftKings Sportsbook app presents a mix of positive and negative aspects. Below is a comprehensive summary of the key points raised by users regarding their experiences with odds & pricing, functionality & user experience, cashiering, market coverage, support, and bonuses & promotions.
Odds & Pricing
- Odds Competitiveness: Many users feel that the odds offered are not competitive compared to other sportsbooks, leading to dissatisfaction.
- Pricing Transparency: Several players reported confusion regarding the pricing structure, with unclear fees impacting their betting experience.
- Limited Betting Options: Some users mentioned a limited selection of betting options, restricting engagement with preferred sports.
Functionality & User Experience
- Intuitive Design: The app is generally praised for its user-friendly interface and smooth navigation.
- Live Betting: Users enjoy the live betting feature, allowing real-time bets during games.
- Performance Issues: A few users reported occasional lag or crashes, particularly during peak times.
Cashiering
- Ease of Deposits: Many users found making deposits straightforward with various payment options available.
- Withdrawal Delays: A common complaint is the slow processing time for withdrawals, leading to frustration.
Market Coverage
- Variety of Sports: Users appreciate the wide range of sports available for betting, including popular and niche options.
- Live Betting: Positive feedback on the live betting feature enhances the overall experience.
- Limited Availability: Some users expressed frustration over the limited availability of certain markets, especially for less popular sports.
Customer Support
- Responsive Support: Some users reported timely responses from customer support representatives.
- Frustration with Response Times: A significant number of users expressed dissatisfaction with the speed of responses, indicating delays in getting help.
- Inconsistent Quality: Reports of varying levels of support quality were noted, with some users feeling their issues were not adequately addressed.
Bonuses & Promotions
- Limited Promotions: Many users noted that the promotions offered are not as competitive compared to other sportsbooks.
- Complex Terms and Conditions: Players frequently mentioned that the terms associated with bonuses are often confusing and difficult to meet.
- Positive Aspects: A few users appreciated the initial sign-up bonuses, but these were often overshadowed by negative experiences.
In conclusion, while the DraftKings Sportsbook app has a solid foundation with its functionality and market coverage, significant areas for improvement exist, particularly in odds competitiveness, withdrawal processing times, and customer support. We recommend checking back later when more user feedback becomes available for a clearer picture of the overall user experience.
What Real FanDuel Bettors Think of the Sportsbook
Comprehensive Review of FanDuel Sportsbook App
The overall experience with the FanDuel Sportsbook app has been shaped by user feedback across various themes, including bonuses & promotions, functionality & user experience, cashiering, market coverage, support, and odds & pricing. Below is a summary of the key insights gathered from user reviews.
Bonuses & Promotions
- Positive Aspects:
- Users appreciate the variety of bonuses, including welcome offers and ongoing promotions.
- Wagering requirements for bonuses are generally considered reasonable.
- Promotions are frequently updated, keeping the experience engaging.
- Negative Aspects:
- Limited availability of certain promotions by state has frustrated some users.
- Terms and conditions for bonuses are not always clearly communicated.
- Technical issues have been reported when redeeming bonuses.
Functionality & User Experience
- User-Friendly Interface: The app is praised for its intuitive design and smooth navigation.
- Fast Loading Times: Users report quick loading times, enhancing the betting experience.
- Mobile Compatibility: The app performs well on mobile devices, allowing for convenient betting.
Cashiering
- Positive Aspects:
- The cashiering section is user-friendly, making transactions easy.
- A variety of payment options, including credit/debit cards and e-wallets, are available.
- Challenges Faced:
- Some users have experienced delays in processing withdrawals.
Market Coverage
- Diverse Betting Options: Users appreciate the variety of sports and betting markets available.
- Areas for Improvement:
- Some users noted limited coverage of certain sports or events.
- Inconsistent promotional offerings have led to dissatisfaction.
Support
- Response Time: Many users reported long wait times for customer support.
- Quality of Assistance: While some found support helpful, many felt their issues were not adequately addressed.
- Availability: Limited support hours during peak times were noted as a drawback.
- Communication Channels: Users appreciated the variety of contact options but desired more responsive service.
Odds & Pricing
- Odds Competitiveness: Many users find the odds competitive, though some believe better odds can be found elsewhere.
- Pricing Transparency: The pricing structure is generally clear, but some users reported confusion regarding fees.
Conclusion
In summary, while the FanDuel Sportsbook app offers a generally positive experience with its functionality, bonuses, and market coverage, there are notable areas for improvement, particularly in customer support and cashiering. Users are encouraged to check back later for more comprehensive feedback as more reviews become available.
Where is FanDuel Legal
Where are Draftkings and FanDuel Available?
Neither platform is available in every state where betting is legal, but both can be accessed in at least half of all American states, where they meet licensing requirements and adhere to state-specific regulations.
FanDuel
Fully Operational States (25 and D.C.): Arizona, Colorado, Connecticut, Washington D.C., Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Mississippi, North Carolina, New Jersey, New York, Nevada, Ohio, Pennsylvania, Tennessee, Virginia, Vermont, Washington, West Virginia, Wyoming.
DraftKings
Fully Operational States (26 and D.C.): Arizona, Colorado, Connecticut, Washington D.C., Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Maryland, Michigan, New Hampshire, North Carolina, New Jersey, New York, Ohio, Oregon, Pennsylvania, Tennessee, Virginia, Vermont, West Virginia, Wyoming.
You can find a table showing where these platforms are available.
| State | FanDuel Sportsbook | DraftKings Sportsbook |
|---|---|---|
| Arizona | Online & Retail | Online Only |
| Colorado | Online & Retail | Online Only |
| Connecticut | Online & Retail | Online Only |
| Washington D.C. | Online Only | Online Only |
| Illinois | Online & Retail | Retail & Online |
| Indiana | Online & Retail | Online Only |
| Iowa | Online & Retail | Online Only |
| Kansas | Online & Retail | Online Only |
| Kentucky | Online & Retail | Online Only |
| Louisiana | Online & Retail | Online Only (Varies by Parish) |
| Maine | Not Available | Online Only |
| Michigan | Online Only | Online Only |
| Mississippi | Retail Only | Not Available |
| North Carolina | Online & Retail | Online Only |
| New Hampshire | Not Available | Online Only |
| New Jersey | Online & Retail | Online Only |
| New York | Online Only | Online Only |
| Nevada | Retail Only | Not Available |
| Ohio | Online & Retail | Online Only |
| Oregon | Not Available | Online Only |
| Pennsylvania | Online & Retail | Online Only |
| Tennessee | Online Only | Online Only |
| Vermont | Online Only | Online Only |
| Virginia | Online & Retail | Online Only |
| Washington | Retail Only | Not Available |
| West Virginia | Online Only | Online Only |
DraftKings and FanDuel Revenue
Although these two sportsbooks have an extremely similar market share, that doesn't mean that the two companies' revenue is in lockstep.
DraftKings' revenue has grown consistently from 2020 to 2024, starting at $614 million in 2020 and reaching $3.67 billion by 2023. In contrast, FanDuel's revenue was significantly higher throughout, beginning at $5.69 billion in 2020 and reaching $12.31 billion by 2023, showing a much larger market presence.
Both companies experienced strong growth from 2020 to 2021, with DraftKings more than doubling its revenue and FanDuel increasing by over $2 billion. However, FanDuel's growth remained steadier, while DraftKings saw a more gradual climb, with a significant increase in 2023.
In 2022, DraftKings' revenue grew by nearly $1.4 billion, whereas FanDuel saw an even larger increase of around $2.35 billion. This trend continued into 2023, with DraftKings growing by about $1.4 billion again, while FanDuel's revenue surged by another $3.35 billion, reinforcing its dominant position.
The most recent data from 2024 shows both companies continuing to expand, with DraftKings at $1.1 billion in Q2 and FanDuel reaching $4.67 billion. Although DraftKings is growing rapidly, FanDuel maintains a clear lead in overall revenue, highlighting its stronger market position.
Last Word
The U.S. sports betting market continues to grow rapidly, with DraftKings and FanDuel leading the charge thanks to their early start, strategic partnerships, and aggressive marketing. These factors highlight why they remain dominant despite increasing competition.
- Both platforms capitalize on their daily fantasy sports origins to maintain a strong user base.
- Strategic league and team partnerships bolster brand credibility and reach.
- Aggressive spending on marketing ensures sustained customer acquisition and engagement.
As the market evolves, DraftKings and FanDuel are well-positioned to maintain their leadership in the sports betting industry.
References and Page History
Current (February 11, 2025)
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Meet our Authors
Paruyr Shahbazyan started his business career as an entrepreneur in 2000. Over 13 years, he learned business and leadership, which laid the foundation for his career.
In 2013, Paruyr entered the sports and betting industry as the founder and president of Bookmaker Rating, an online media platform he led until 2020. The platform focuses on in-depth analysis and insights in sports betting and has gained a reputation for quality content.
In 2022, Paruyr co-founded Azuro, a decentralized betting protocol. This shows his commitment to technology in the sports betting space. Through all these experiences, Paruyr has been shaping and influencing the betting industry, setting new trends and standards.
Innovation in sportsbetting comes from a deep understanding of both technology and the human element of sports.
Strategic Vision
Paruyr's vision is to revolutionize the sports entertainment industry by integrating technology. He sees the future of sports entertainment as a blend of traditional sports knowledge with innovative tech solutions, like decentralized protocols, to enhance user experience and fairness. He aims to create platforms that are not only user-friendly but also uphold the highest standards of ethical reporting, contributing to a more responsible and enjoyable sports culture.
