DraftKings, FanDuel Dominate Burgeoning NJ Sports Betting Market
Posted on: October 15, 2018, 06:37h.
Last updated on: October 16, 2018, 11:43h.
The New Jersey sports betting market is three months old today and meaningful figures are now beginning to emerge. The latest numbers from the New Jersey’s Division of Gaming Enforcement (DGE) show online sports betting is beginning to dominate the market — and DraftKings and FanDuel are streaking ahead as significant market leaders.
DGE director David Rebuck reported “explosive growth” in sports betting in September, thanks largely to the start of the NFL season on September 6. This is not only because football is the most bet-upon sport in the US, but also because the advent of the new season prompted a last-minute scramble of new entrants to the market.
Thus, September’s figures provide a more complete picture of a fuller market, as opposed to the August’s when DraftKings had the online segment all to itself until August 22 when MGM Play went live.
New Jersey sports betting gross gaming revenues grew to $24 million in September from a total of $184 million in bets. Online betting accounted for $104.9 million, or around 56.5 percent of handle.
DraftKings and its partner Resorts Digital is leading the New Jersey sports betting market with a 35.4 percent share (revenues of $8.5 million) while old rival FanDuel and its partner, the Meadowlands racetrack, are not far behind, with a 30 percent share. Together, the two companies boast around a 90 percent share of the online market.
In DraftKings and FanDuel’s early dominance, we are seeing the value of their readymade customer databases of DFS players who are making the easy transition from fantasy to sports betting.
FanDuel was acquired by Paddy Power Betfair PPB in May, partly because the Anglo-Irish company wanted to enter the US markets with a recognizable US brand but also because it saw the value of its DFS database.
Atlantic City Healthy
DraftKings had never processed a single sports bet when it went live with its digital sports book in early August. Three weeks ago, the company announced it had processed its two millionth.
Some speculated its inexperience and the lack of a big European backer like PPB might cause it to struggle in the new market. They were wrong.
DraftKings offers digital sports betting only, with technical help from the Malta-based Kambi Group.
The DGE reported total revenue across Atlantic City’s entire gaming sector grew 7.7 percent to $281.7 million. Online gaming excluding sports betting saw total revenue grow 26.5 percent to $25.6 million for the month.
Editor’s Note: An earlier version of this story said that FanDuel had the online segment to itself until August 22nd. That has now been corrected to DraftKings. We regret the error.