Earnings+More - DraftKings gains ground
DraftKings gains groundDraftKings makes market share gains in May, overround analysis looks at what the bookies are doing in the off-season, plus recession rumblings +MoreGood morning. The latest edition of The Data Month looks at the market shares of the leading contenders in May and suggests DraftKings is taking share from those below it in the rankings.
DraftKings’ gainsThe latest OSB data for May suggests DraftKings is taking share from those below it in the rankings. Stealing a march: A comparison between market shares for online sports betting in May compared with the last 12 months figures indicates DraftKings has made gains at the expense of operators below it in the rankings.
👑 DraftKings is stealing market share No. 1 in heaven: Recent data from Massachusetts and New York also suggests DraftKings is starting to eat into FanDuel’s market leadership.
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🥊 FanDuel vs. the rest on overrounds Markets per eventSample size: The chart below shows the total number of markets available for each event within the sample of competitions. Note, each bookmaker groups markets in different ways, so Propus has used a standardised approach for fair comparison.
🕷️ Where FanDuel sits in terms of number of markets FanDuel vs. the marketSelectively aggressive: Propus argues that the above data shows FanDuel (blue line) does not have a particularly aggressive pricing policy, from this sample anyway, and while market sets are strong, so are those of key competitors. It leads then to ask what else, from a product perspective, has led to the market-leading position?
Note: Data was taken across seven different competitions from six leading US sportsbooks from the week commencing June 12. All data was taken pre-match. Analysis in future editions will take deeper dives into price position by selection (i.e., how margin is weighted) and current bet builder/SGP product positions. ** SPONSOR’S MESSAGE ** Venture capital firm Yolo Investments manages in excess of €600m in capital across 80 exciting fintech, gaming and blockchain companies. The Yolo Investments' Gaming fund, regulated by the Guernsey Financial Services Commission, has taken positions in fast-growth suppliers and operators, including Dabble and Enteractive. Yolo Investments (yolo.io) wants to hear from readers of this newsletter. Get in touch with your pitch, or for a chat about innovative products which can plug into our investment ecosystem. Recession watchThe resumption of student loan repayments could provide another headwind for the consumer. Bloody students: Student loan repayments in the US could add ~$6bn of further pressure on consumer spending, adding further uncertainty to the gaming sector backdrop and posing particular risk for digital operators, according to Wells Fargo.
Penn push: Highlighted as being particularly vulnerable is Penn Entertainment, which has made much of its attempts to attract a younger demographic to its properties. Helped along by the Barstool acquisition, Penn has seen a steady increase in revenue from younger cohorts, up to over 18% vs. under 13% in 2019.
🎓 Income disparity: customers on the Strip earn more Data pointsUK large licensees: Looking at the most recent data from the UK Gambling Commission, the team at Regulus points out there are shifts taking place in market share dynamics rather than a sagging overall market.
Tail on the donkey: The team argues that comparing this data with the recent earnings commentary from the listed players, it is fair to suggest that Entain and William Hill/888 “lost material share”.
The growth in gaming was more lackluster at ~0.3% QoQ and down 4.8% YoY, a market situation that Regulus ascribes to dampened levels of recycling from betting, the effect of extra RG measures and, again, the long tail taking meaningful market share.
Domination game: Last week, E+M reported how FanDuel, DraftKings and BetMGM continued to dominate in OSB in New Jersey, Pennsylvania and Michigan in May, with joint market shares of between 81% and 90%.
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