Two months following its launch in the state of New York, the FanDuel Group has become the first operator to exceed the $1 billion handle mark. Eight weeks into the operation, a collaboration between the research company Fantini and the New York State Gaming Commission has announced FanDuel is leading the market share in the handle at 38% – a 1% rise from last week’s 37%.
While FanDuel’s market share of revenue is outperforming the competing operators, their revenue market share has dropped from 49% to 41%. Although this shouldn’t be an issue when a mere two weeks ago, the market share percentage was at 25%.
However, if FanDuel wants to retain their leadership in New York, they must continue dominating the revenue market share, and further percentage losses will ultimately damage the company long term. The likes of Caesars Entertainment are fierce competition and are currently the annual revenue market share leaders at 38%.
With that said, FanDuel is still young in the game, having only existed in the state of New York since January. A handle market share of 30% ($1.07 billion) is astronomical when considering this factor. Caesars isn’t the main competition of FanDuel, as they’re third in the running for market share and handle, respectively.
Currently owning 16% of the market share revenue, Caesars had witnessed a significant drop within the previous 14 days when they owned 38%. For any chance to reinstate their market share year-to-date revenue, they’ll need a see huge turnarounds.
DraftKings is currently the main competitor for FanDuel, owning a 12% weekly rise in revenue share and just a 1% decline on weekly handle market share. Overall, the battle for market growth between FanDuel, Caesars, and DraftKings in New York assists the state and general business prosperity in the Big Apple.
The newest weekly data reveals that the market has produced $25 million in revenue from a $350 million handle, a 0.43% decline in revenue from the last week, and a 2% drop in the handle. As the gaming operators in New York are expected to conjure together their plans for competition, they could receive almost double the number of competitors in the years to come.
Gary Pretlow Attempts to Double the Sports Betting Market
J. Gary Pretlow, a New York Assemblyman, has introduced new legislation within the gambling industry. Should his proposition receive the green light from the New York Gaming Commission, the number of local sports betting operators will rise from nine to 16.
During New York’s sports betting launch on January 8, 2022, nine operators were given licenses by the New York Gaming Commission. This small number of operators has been criticized for restricting the available variety for local sports betting enthusiasts.
New York has been active in the online sports betting market for just two months but has already become the most prominent betting market in the country. Owning a $3 billion handle to date, Gary Pretlow believes there is room for growth, and his bill could introduce a further seven licensed operators by 2024.
The current regulations approved nine operators, but only eight are active in the online market. FanDuel, DraftKings, BetMGM, Caesars, PointsBet, WynnBET, BetRivers, and Resorts World are currently operational.
Mr. Pretlow highlighted multiple reasons why his bill should be passed. With the opportunity to increase tax revenue and local jobs, he also pointed out that minority-operated brands don’t exist amongst the current nine operators, which is a poor effort to diversify the market.