\n Posted on: September 2, 2024, 12:19h.\u00a0\n <\/p>\n
\n Last updated on: September 2, 2024, 12:19h.\n <\/p>\n
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<\/div>\n<\/p><\/div>\n<\/p><\/div>\nWith most states having reported online sports betting (OSB) data for July, Flutter Entertainment \u2018s (NYSE: FLUT) FanDuel unit regained the top spot in terms of market share from DraftKings (NASDAQ: DKNG).<\/p>\n That according to recent estimates by Stifel analyst Jeffrey Stantial. DraftKings and FanDuel have long held a duopoly<\/a> in the US sports wagering scene in which they account for more than 70% market share. On a month-to-month basis, the two frequently rotate occupancy of the top spot with neither ever dropping below second place. That trend remained in place in the seventh month of the year.<\/p>\n FanDuel appears to have regained market share in July with OSB handle share up +0-3% month-over-month in most states \u2013 consistent with seasonality observed last year, though potentially also a function of higher promo reinvestment,\u201d wrote Stantial.<\/p>\n<\/blockquote>\n The analyst added that as measured by handle, DraftKing was the biggest loser in July, shedding as much as 3% in some markets. BetMGM and Caesars Sportsbook ceded modest handle share in July while market share in the iGaming arena was steady.<\/p>\n College football commenced in earnest over the weekend and the 2024 NFL season starts on Thursday. So with football being the most wagered on sport in the US, it\u2019s not surprising that there\u2019s evidence of increased promotional spending<\/a> by sportsbook operators.<\/p>\n \u201cBased on the three \u2018mature\u2019 and competitive states that have reported July OSB promotional figures, reinvestment by operator ranged 1-6% of handle \u2013 up +10 basis points month-over-month and flat year-over-year on average. Interestingly, the data shows FanDuel reinvestment up ~80 basis points year-over-year (as a % of handle) on average, with DraftKings up a more modest ~40 basis points,\u201d observed Stantial.<\/p>\n Added promotional expenditures could make sense this year because wagering on the NFL is expected to break records<\/a> and because this is the first full football season for ESPN Bet and Fanatics. Some analysts believe those operators will leverage promo spending in an effort to lure customers from larger competitors.<\/p>\n<\/div>\n In recent months, BetMGM has been one of the biggest promotional spenders, according to Stantial and the analyst forecasts large expenditures from ESPN Bet over the course of the 2024 football season.<\/strong><\/p>\n Stantial left his state-level iGaming and sports wagering forecasts unchanged, but acknowledged the segments have both positive catalysts and risks.<\/p>\n \u201cHealthy underlying user acquisition and monetization (increasingly weighted to the former), 2) increasing competition boasting wider user bases (ESPN Bet; Fanatics), 3) improvements to product from omnichannel operators, 4) incremental customer acquisition tools, and 5) continued product-driven improvements to hold-rate,\u201d he wrote.<\/strong><\/p>\n On the risk side, the analyst sees the possibility of more smaller players exiting<\/a> the US market, lethargy on the legislative front, regulatory changes, the possibility some states will raise gaming taxes, and consumer fatigue when it comes to high hold wagers as issues to monitor in the months ahead.<\/p>\n<\/div>\n![\"FanDuel\"](\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/FD_Home_1-858x663.jpg\")
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It\u2019s That Time of Year Again for Promo Spending<\/h2>\n
Upside Drivers, Lingering Risks<\/h2>\n