BetMGM, DraftKings Gaining Ground on FanDuel, Says Research Firm

Posted on: August 15, 2025, 12:46h. 

Last updated on: August 15, 2025, 12:46h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • As measured by Q2 net gaming revenue (NGR) growth, rivals outpaced FanDuel
  • FanDuel dealing with tough comparisons
  • Its Q2 net revenue margin beat competitors

FanDuel is the US iGaming and online sports betting leader, but it may ceding some ground to competitors, namely DraftKings (NASDAQ: DKNG) and BetMGM.

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The FanDuel Sportsbook logo. Rival operators are gaining ground on the basis of net gaming revenue growth. (Image: FanDuel Sportsbook)

In a report out Friday, Eilers & Krejcik Gaming (EKG) notes that in the second quarter, FanDuel’s internet sprots wagering net gaming revenue (NGR) grew 11% — solid, but well off the growth rates of 56% and 45% posted by BetMGM and DraftKings.

FanDuel and DraftKings added $430 million in new NGR between them in the quarter, and DraftKings accounted for around three-quarters of that ,” observes EKG. “Given the overlap in customer base, that’s NGR going to DraftKings and not FanDuel.”

FanDuel is owned by Flutter Entertainment (NYSE: FLUT), which is the largest publicly traded gaming company in the world by market capitalization, implying it has the financial resources with which to ward off competition and continue growing.

FanDuel Still Thriving

FanDuel, which is one of the most valuable gaming brands in the world, may be losing some NGR ground to rivals, but that doesn’t mean the Flutter unit is rotting on the vine. Far from it.

As EKG points out, it’s possible that FanDuel is both a victim of its own success and tougher comparisons. Regarding the latter notion, a point comes when the law of large numbers kicks in and it becomes difficult for revenue to consistently grow at elevated levels. Conversely, smaller competitors are coming off lower top-line bases, making it easier for them to outpace FanDuel in the NGR growth department. Plus, FanDuel is showing other signs of advantage over DraftKings and BetMGM.

“FanDuel is indeed lapping a 2Q24 net revenue margin of 10.0% compared to 6.4% margin for DraftKings and 5.9% for BetMGM, as well as a much higher revenue base,” adds EKG.

The research firm also points out that in the second quarter, nationwide net hold for online sportsbook operators was 8.13%. DraftKings was in-line with that percentage, but FanDuel was closer to 10% while BetMGM and Caesars Sportsbook were both below the national average.

DraftKings Can Garner More Upside

Already the other half of a US sports betting duopoly with FanDuel, DraftKings is likely the most credible threat to FanDuel’s pole position.

“DraftKings also has potentially more upside to come given its 2Q25 net revenue margin of 8.7% vs. 10.4% for FanDuel, and no. 1 ranking in our OSB product testing,” says EKG. “That’s not to say FanDuel isn’t still the clear market leader. It is, but the gap to the chasing pack looks closer than ever, in our view.”