September was a big month in the world of sports betting: a record was set in New Jersey for betting handle and an operator in Michigan became the first to reach the $100 million handle milestone.
An analyst took a look at how the top states are doing in sports betting and how the big three are controlling the market.
September Sports Betting Records: Total gaming revenue was up 131% year-over-year for the states that have reported September totals, according to Bank of America’s Shaun C. Kelley.
Online sports betting handle for the states that have reported September figures was up 70% year-over-year to a record $2.37 billion.
The return of NFL games was a key contributing factor according to the analyst.
The top six online sports betting operators continue to dominate the states that have legalized sports betting with Iowa, Michigan, Pennsylvania and Indiana having 87% or more of the handle from these companies.
Related Link: Michigan September Online Sports Betting Heats Up: DraftKings Passes $100M, Do Profits Matter?
The Winners: Draftkings Inc DKNG; FanDuel, owned by Flutter Entertainment ADR PDYPY, and BetMGM, a joint venture between MGM Resorts International MGM and Entain have dominated the states they operate in.
DraftKings had online sports betting handle of 16% in the top three states of New Jersey, Pennsylvania and Michigan for September. iGaming share for the company was 16% in the same three states.
FanDuel had a market share of 48% in the three largest states, up 12% month-over-month. FanDuel’s online gaming market share was 15% in the three states.
BetMGM had online sports betting handle market share of 19% in the top three states, up 5% month-over-month. iGaming market share for BetMGM in the three states was 29%.
Barstool Sportsbook, a unit of Penn National Gaming, Inc. PENN, was mentioned by Kelly as the distant fourth place company with a 6% market share and a 2% month-over-month gain in market share in the top three states. Kelley noted a “solid debut” for Barstool in New Jersey with a 6% market share in its first full month in the state.
Of the reported states, BetMGM led the way in the iGaming market with a 31% market share. FanDuel and DraftKings each had a 15% market share. Rush Street Interactive Inc RSI was fourth with an 11% market share.
What’s Next: Connecticut was among the recent states to launch online sports betting and online gaming. DraftKings, FanDuel and Rush Street Interactive were mentioned by Kelley as companies that will operate in Connecticut. Kelley also brought up New York, Louisiana and Maryland as states that have progressed positively in launching online sports betting.
The analyst has revised projections for the total addressable market size for online sports betting and online casino in North America.
Previous estimates called for a market size of $5.3 billion in 2021, $15.9 billion in 2025 and $27.4 billion in 2030. Kelley’s new projections call for the online sports betting and online gaming market to hit a market size of $6.8 billion in 2021, $19.4 billion in 2025 and $32.0 billion in 2030. Kelley’s estimates include a 10% contribution from Ontario in the Canadian market.
Benzinga’s Take: In the three biggest online sports betting states, DraftKings and FanDuel hold a number one or number two market share position. MGM ranks third in all three of the largest states while also holding a dominant share in the iGaming sector.
The big three continue to distance themselves in the market with dozens of operators. Another wave of consolidation could continue in the sports betting space as the big three compete with each other.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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