A new analysis from JMP Securities reveals that DraftKings and Fanatics saw the biggest market share gains. They led the U.S. sports betting market in January.
According to JMP, DraftKings achieved the strongest performance. It secured the largest handle market share gains both month-over-month and year-over-year among major operators.
In spite of flat year-over-year gaming margins of 11%, the success of the company came.
In contrast, FanDuel saw its market position decline. JMP reported the company lost 68 basis points of market share by handle month-over-month and 512 basis points year-over-year.
JMP noted that FanDuel will address current trends during its March 4 earnings call.
JMP highlighted that the new entrant has now captured a 6.7% market share. Fanatics continued its impressive momentum in the sector.
Trailing the third-largest sportsbook of the industry by 80 basis points, this puts Fanatics within striking distance of BetMGM.
The shifting competitive dynamics come as major operators adjust their promotional strategies.
JMP noted that while DraftKings and FanDuel maintained or increased promotional spending in January, smaller operators cut back on promotions.
Nevertheless, DraftKings has also indicated plans to reduce promotional spending in the current year.
Overall sports betting volume showed strong growth to start the year, beyond market share shifts.
JMP reported that same-store betting handle grew 20% year-over-year in January across reporting states. This marks an acceleration from the 15% growth seen in the previous year’s fourth quarter.
Analysts noted that handle growth slowed in Q4 2024 due to challenging year-over-year comparisons. Parlay handle growth had previously reached 40% to 70%.
However, these comparisons should become easier in the second quarter of 2024.
