In May of 2018, the US Supreme Court decided to repeal PASPA, the Professional and Amateur Sports Protection Act, which went into force in October of 1992. Its purpose was to define the legal status of sports betting in the US, effectively outlawing the activity nationwide, excluding a few states.
Once this law got overturned, states could choose to regulate sports gambling as they saw fit. Currently, twenty have decided to legalize the activity, and six more have recently passed bills to follow suit.
This event caused a digital sportsbook gold rush in the US and allowed the nation’s two biggest daily fantasy sports entities, FanDuel and DraftKings, to enter this sphere. In hindsight, these two were the clear choices to lead the market, as they have spent millions on app development and marketing to cultivate a sports-mad user base and develop dedicated smartphone software.
Though, the duo has recently encountered trouble in this department, prompting users to search out a guide to fixing a continuous issue with the FanDuel mobile app, as well as the one from DraftKings.
Both companies have a vast advantage over the competition, making the US market a two-horse race for the time being, with bettors wagering on who will come in third place. Many believe that Barstool holds an edge over the competition due to its database of 66 million monthly unique visitors, 62% of which like to wager on sports. BetMGM and Ceasars/William Hill are also vying for that number three spot, with plans to take over.
FanDuel Shows Biggest US Market Share
Irish bookmaking company Flutter Entertainment owns FanDuel. They are an entity that got created via the merger of Betfair and Paddy Power. In their company catalog, gamblers can recognize top brands such as Full Tilt Poker, Pokerstars, Sky Bet, BetEasy, and many others. Flutter stocks trade on the London Stock Exchange, and this betting juggernaut pulls in annual revenues of $6 billion.
Their FanDuel’s US revenues saw a growth of $967 million in 2020, which is an 81% increase. The company also reported an 86% rise in FanDuel Sportsbook stakes to $6.1 billion and a 101% growth in sportsbook revenues for that same year. At the time of writing, the company controls the largest market share in the US. It is over 40% larger in size than DraftKings.
DraftKings Primed to Conquer New York
Legalized mobile sports betting is coming to New York. Governor Cuomo predicts that the move will bring over $500 million in revenues within three years. The state will now have to choose two platform operators to run mobile wagering. As expected, these will likely be FanDuel and DraftKings.
However, the latter has advantages in that it has established partnerships with land-based venues in the state, such as the del Lago Resort & Casino in Waterloo. Experts also believe that vertically integrated companies like DraftKings will have a leg up in New York because policymakers have yet to define the term platform concerning operators. DraftKings owns, SBTech which is a platform provider.