Despite it being self-claimed over the past several months, DraftKings is officially the new market share leader for online casino and sports betting, according to the Earnings+More newsletter.
DraftKings Pennsylvania recorded a strong August and September for iGaming revenue. The operator is also benefiting from an enhanced sports betting product, as well as the acquisition of another gaming platform.
DraftKings becomes overall market leader in online gambling
The Earnings+More newsletter has reported that DraftKings has taken over online gambling for the first time, reaching 31% market share in August across both sports betting and online casinos on a national level. The previous leader, FanDuel, recorded approximately 30% market share.
DraftKings Casino PA displays online dominance
Despite passing FanDuel in most states for online sports betting, DraftKings’ online casino has been even more successful. During Q2 2023 earnings calls, DraftKings said it captured 27% of the online casino market share, which is the highest among all operators. The company credited its most mature markets for the growth in this area.
In a business update written by CEO Jason Robins and CFO Jason Park, the executives said:
“Older states are generating significant contribution profit after the initial investment period as customers are retained, handle per player increases, hold rises, promotional intensity declines, and external marketing decreases.”
DraftKings is part of the Hollywood Penn National license, along with BetMGM Pennsylvania, Hollywood, Barstool and PointsBet. The Pennsylvania Gaming Control Board (PGCB) displays revenue by license and not by operator. Despite that, the Hollywood Penn National license produced $143.4 million in August and September revenue. Here is a list of the top three licenses by revenue during those months:
- Hollywood Penn National: $143.3 million
- Valley Forge (FanDuel Pennsylvania, Stardust): $81.8 million
- Rivers Casino Philadelphia (BetRivers Pennsylvania, Borgata Pennsylvania, PlaySugarHouse): $68.4 million
While it’s difficult to discern exact numbers from operators, it is safe to assume that DraftKings is leading the PA market in revenue.
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DraftKings PA online sports betting progress
DraftKings has surpassed FanDuel in national sports betting to the tune of 41% market share compared to 34%. However, Pennsylvania is actually one of the only states where FanDuel leads DraftKings. Here are the handle figures for August and September for the two operators:
- FanDuel: $134.7 million
- DraftKings: $113.6 million
- FanDuel: $256.4 million
- DraftKings: $230.5 million
DraftKings earned more revenue than FanDuel in August for the first time ever. DraftKings recorded $9.5 million in revenue to FanDuel’s $9.4 million. However, in September, FanDuel got back on track by generating $30.2 million compared to DraftKings’ $20.1 million.
DraftKings’ acquisition of Golden Nugget Casino Pennsylvania helping cause
One of the reasons DraftKings has exceeded expectations and has passed FanDuel is because of the Golden Nugget acquisition. DraftKings acquired the company in May 2022.
“Acquiring Golden Nugget Online Gaming gives us synergies across our business,” Robins said in a May 2022 press release. “We anticipate that this acquisition will provide meaningful revenue uplift by utilizing our data-driven marketing capabilities and a dual brand iGaming strategy, gross margin improvement opportunities, and cost savings across external marketing and SG&A.”
The acquisition is doing everything Robins has imagined. Golden Nugget has a strong presence in West Virginia, New Jersey and Michigan. Its Golden Nugget Pennsylvania product is growing too, after recording $6.4 million in September online casino revenue.
Golden Nugget is expected to keep climbing the ranks in Pennsylvania, which is the most robust market in the country. The operator launched in August with nearly 600 slots, including DraftKings-branded games, which has given it a leg-up on its competition.
The partnership has proven to help both sides out. It has catapulted DraftKings as the top online gambling operator not only in Pennsylvania, but the entire country.