In a twist fit for a sporting legend, the Kansas City Chiefs, the storied underdogs, soared to victory at Super Bowl LVIII. Their triumph, however, threw a curveball at the nation’s regulated sportsbooks, as the day’s heavy betting favored the opposite outcome, sending ripples of disappointment through the industry. Yet, as any seasoned gambler would attest, one loss is merely a drop in the ocean of the burgeoning online betting market.
At the forefront of this market are two giants, DraftKings and FanDuel’s parent company, Flutter Entertainment. These behemoths command the betting arena, ruling approximately 70% of the US market. Flutter’s recent march onto the New York Stock Exchange was no less victorious, signaling a rallying cry for investors. The company’s listing opened the door to new markets and financing avenues, offering a promise of talent acquisition that could sharpen its edge in this fierce coliseum.
Morningstar analyst Dan Wasiolek remarked, “It could also open up new markets or financing opportunities and also allow the company to retain and obtain new talent. All these things can help its competitive positioning.”
Indeed, Flutter now claims the title of second-largest gaming company on a US exchange, chasing the heels of the venerable Las Vegas Sands. But such is the nature of the online betting stock landscape—ripe with rivalry, yet bound by the mutual drive to lead.
DraftKings and Flutter’s competition arrive amid the introduction of new contenders, like Bet365 and ESPN Bet. Yet even amid such prolific company, Fanatics, a formidable namesake in the sporting world, remains a whisper in the wind concerning its stake in sports wagering revenue.
FanDuel maintains its crown with roughly 40% of the sports betting revenue share, with DraftKings not far behind. The tides of the market continue to shift with the advent of ESPN Bet in partnership with PENN Entertainment, capturing the eyes and wallets of betting enthusiasts.
The challenge is welcomed by DraftKings, which views the rise of competitors as the opening bell for broader participation in regulated sports betting. Indeed, the call for more legalization is deafening, with states like Georgia and Missouri tottering on the brink of opening the floodgates for mobile sports betting this year.
Yet giants still sleep. The likes of California, Texas, and Florida remain reluctant to place sports wagering on their ballots. In Florida, particularly, the monopoly of Hard Rock International’s mobile sports wagering holds strong. However, states are waking up to the boom of betting taxes, which could funnel a wealth of resources into their coffers.
Wasiolek adds a final nugget of wisdom, “Now, the incentive for these states to legalize sports betting is, one major driver would be generating tax revenue, which can be quite substantial. For example, in New York, we calculate that the tax revenue generated per adult by sports betting is equal to that generated for nicotine sales. So it can be quite substantial for state budgets.”
In this thrilling narrative of stakes, strategies, and the spectacle of sportsmanship, one thing is clear—betting on the online betting market might just be the wager of the century.
