As sports betting in the Keystone State continues to flourish, FanDuel continues to maintain its firm grip on the market.
The Flutter-owned company took 56% of the Pennsylvania sports betting revenue following the May 2022 figure reports, and they don’t seem to be slowing down for the competition anytime soon.
DraftKings (18%) and BetMGM (10%) shared the leftovers, as the competitive spirit in PA is being crushed by FanDuel.
It’s Not Even Close
“We are continuing to push hard on driving some customer acquisitions, and we’re very, very pleased with the acquisition costs that we’re seeing and the lifetime value dynamics that we’re also seeing,” said Peter Jackson, the Flutter CEO.
“It’s giving us real conviction, and we’re leaning in very heavily to acquire as much business as we can.” He continued.
Marketing Triumphs All
The FanDuel business approach has lived up to the expectations of Jackson and co. FanDuel splashed $5.5 million in promotions during May – five times more than DK – and more than any other operator in the market.
This pushed FD into owning 42% of the online handle. In addition, FanDuel’s position within trading and Same Game Parlay held 13.1%. To understand this market dominance, DK held 7.4%, and BetMGM held 8.4%.
Behind the top three operators, Barstool finished in the fourth position behind a 5% gaming revenue, slightly ahead of BetRivers (4%).
There were no other operators who obtained 2% or higher. Due to their lack of promotional expenditure, Barstool requested to have their results based on Net Gaming Revenue (NGR).
Month-to-Month in PA
As a whole, the month-to-month sports betting handle plummeted 14% to $493 million in May.
The gross gaming revenue fell by 8% to $47 million. Following the removal of $12 million in promotional spending, NGR was $35 million.
However, there isn’t a cause for concern in these declines, as they fall in line with multiple U.S. states around the country due to the lack of active leagues and competitions during the summer months.
Elsewhere in PA
With little mention of Caesars, it was surprising to see them as the 11th-largest operator in Pennsylvania. With that said, this is most likely due to the removal of promotion, as the casino giant spent a mere $720 on marketing.
Due to the state’s 36% tax rate, Caesars has openly expressed a low-priority position in PA, and they’ve also neglected to release their new technology stack.
Pennsylvania finished May 2022 with $12.8 million in taxes.