FanDuel quickly became the market leader in sports betting in the United States. But, initially, its iGaming product lagged. That’s no longer the case as FanDuel has now taken over top spot in the latter vertical, too. And, FanDuel’s success in Pennsylvania was instrumental in that success.
FanDuel Casino PA is one of the operator’s top performers of any state. It drives a considerable amount of revenue, and commands significant market share.
According to an investors presentation, Flutter, FanDuel’s parent company, has become the No. 1 iGaming brand in the country. Overall, it has acquired 25% market share, nationally.
That’s quite an improvement in less than a year. In November, FanDuel declared itself the No. 2 iGaming operator in the country.
Clearly, the company has made tons of product enhancements.
Credit Pennsylvania for FanDuel’s meteoric rise in iGaming
Highlights of FanDuel’s second-quarter earnings include revenue growth of 47% in total. In states that FanDuel launched before 2020, which includes Pennsylvania, revenue increased 27%. It also rose direct to casino consumer acquisition by 58%.
FanDuel has been nothing short of stellar in Q1 and Q2 of 2024. The Pennsylvania Gaming Control Board breaks license-specific revenue only, and not by operator. That makes it difficult to see exactly how much FanDuel produces.
FanDuel and Stardust are partners with Valley Forge Casino, which is the license holder. The combination of the two, which is likely dominated by FanDuel, has generated the following revenue totals this year:
- January: $52.6 million
- February: $57.2 million
- March: $65.5 million
- April: $59.8 million
- May: $56.1 million
- June: $46.3 million
The brand has come back down to earth a bit in recent months, but has still produced exceptional results. The Valley Forge license is projected to record $675 million this year, which would be a 43.8% increase from 2023.
Reasons for FanDuel’s success, especially in PA market
Pennsylvania is the leading iGaming market in the US, which certainly helps FanDuel’s bottom line. However, the operator has made significant product upgrades that has put itself in prime positioning.
In a press release published before the earnings call, FanDuel noted the launch of exclusive titles, such as Fort Knox Cats, and the FanDuel Reward Machine has increased Average Monthly Players by 30%.
“Clearly, the big part of iGaming is working with third-party providers,” Flutter CEO, Peter Jackson, said on the call earlier this week. “We’ll continue to work extensively with partners in that space.”
While FanDuel is offering top-notch content to players, it has also migrated to its own technology stack.
“In time, this will unlock important benefits through access to in-house content, promotional capabilities and also greater platform stability,” Jackson said.
“This, combined with the launch of more exclusive titles and promotional features in the quarter are further evidence of the fantastic road map of improvements we still have for iGaming players.”
It is is easily the most powerful online gambling operator in the US, as the FanDuel brass certainly doesn’t lack confidence.
“We’ve got the best product in the market,” Jackson said. “We’ve got the best pricing in the market and we intend to work very hard to keep a long way ahead of our competitors.”
