MGM, Caesars Gaining US Online Sports Betting Market Share

Bank of America just reported its latest U.S. online sports betting (OSB) app download numbers for the month of September, and the data suggests MGM Resorts International MGM and Caesars Entertainment Inc CZR are making big strides in gaining market share in the high-growth business.

Bank of America reported 1.8 million OSB app downloads in the month of September, up 198% from a year ago. Year-to-date, there have been about 5 million total OSB app downloads. The state of Arizona launched daily fantasy sports (DFS) betting in September, the latest in a gradual state-by-state rollout of online sports betting and iGaming.

Related Link: How Fox Offers Unique Exposure To US Sports Betting

The Breakdown: Among iOS users, Bank of America analyst Shaun Kelley said Draftkings Inc DKNG still has the largest market share at 37% followed by Flutter Entmt ADR PDYPY subsidiary FanDuel at 24%, MGM at 14%, Caesars at 11% and Penn National Gaming, Inc PENN subsidiary Barstool at 8%.

Compared to a year ago, MGM gained the most market share of any app, up 8%. Caesars also had major gains, adding 7% to its market share. Barstool was the biggest market share loser compared to a year ago, dropping 10%. FanDuel also lost a 5% share compared to a year ago.

Booking Ahead: Looking ahead, Kelley said the next major market to open will be Connecticut, which is slated for a “soft launch” of online sports betting and iGaming on Oct. 12.

Bank of America has the following ratings and price targets for top U.S. OSB leaders:

• DraftKings: Neutral rating, $60 target.
• MGM Resorts: Neutral rating, $48 target.
• Caesars: Buy rating, $125 target.
• Penn National: Buy rating, $110 target.

Benzinga’s Take: Investors should continue watching for major merger and acquisition deals in the online gaming space. In the third quarter alone, Penn announced a $2 billion buyout of theScore, DraftKings acquired Golden Nugget Online Gaming for $1.7 billion, MGM purchased the operations of the Cosmopolitan for $1.6 billion, DraftKings made a $22 billion offer for Etain, and MGM reportedly expressed interest in acquiring the remaining 50% ownership stake in BetMGM as part of the Etain deal.

Photo by Jeff Griffith on Unsplash