During the recent Craig-Hallum Online Gaming Conference, Jason Robins, CEO of DraftKings, expressed confidence in his company’s enduring dominance in the US market alongside its competitor FanDuel. He suggested that smaller brands will adapt to survive on a lesser scale.
Robins shared this outlook while speaking at the fourth annual conference on December 2nd, asserting the strong position of the Boston-based DraftKings and its historical rival, FanDuel, in maintaining leadership in the real-money gaming arena. The success of these companies is partly attributed to their established daily fantasy sports (DFS) customer base that provided a foundation for their expansion into real-money gaming.
Although DraftKings did not reveal specific market share figures in its third-quarter earnings, Flutter, the parent company of FanDuel, reported holding a 35% share in the online sports betting and igaming market.
DraftKings and FanDuel have vied for the top market position, with DraftKings surpassing FanDuel during the third quarter of 2023, according to Eilers & Krejcik Gaming (EKG) data. However, FanDuel reclaimed its lead in the subsequent quarter. Meanwhile, BetMGM, which is often regarded as the strongest of the other competitors, captured a 15% market share in the third quarter.
The EKG Line newsletter recently noted that Fanatics has achieved a 4.8% market share and, along with bet365, is considered a contender capable of disrupting the market.
Robins emphasized that while competition is welcome, DraftKings remains focused on retaining its leadership. He commented on the importance of competition to prevent complacency, stating, “It’s easy to get complacent when you don’t have that pressure.”
He further remarked that despite several attempts by other competitors, no companies have succeeded in disrupting the dominance of the top two market leaders. He anticipates that DraftKings and FanDuel will continue to lead, with other firms operating on a reduced scale.
Robins’ remarks were made against the backdrop of several tier-two and tier-three operators, such as Betway, Kindred Group, and Superbook, exiting the market. Additionally, Betfred has closed operations in all but one of its online sports betting states.
Robins went on to say, “We also don’t take anything for granted,” emphasizing the need for continuous focus and adaptability to remain ahead. He foresaw continued industry consolidation at the top while noting that smaller companies can still find opportunities by carving out niche markets.
Overall, Robins maintained that while there may be consolidation at the top, the market will continue to offer spaces for smaller competitors to thrive. The full article originally appeared on EGR Intel.
