While the legalization of sports betting continues to expand across the U.S., not every state that approves it permits mobile sports wagering.
For New Jersey — the biggest fish in that sea — Roundhill lists FanDuel and PointsBet as as the market leaders due to their parallel partnerships with the Meadowlands Racetrack. State regulators do not parse out the revenue flowing from each and does not separate retail from mobile, but they jointly captured 62.5% of the market in September.
Daily fantasy sports giant FanDuel, which has the longer-running deal with the Meadowlands and which also has a successful retail sportsbook at the track in East Rutherford, is acknowledged in the industry to be bringing in the lion’s share of the joint revenue. DraftKings lags well behind in the Garden State.
Next up is Nevada, where the mobile percentage of online revenue is just 54.9% compared to 89% in New Jersey. For Nevada, William Hill leads the way with about 33% of the state’s gross betting revenue — two-thirds of which come from mobile.
A Keystone battleground
Pennsylvania, No. 3 on the list, has FanDuel as top dog in a state where 89.5% of the sports betting revenue comes from mobile bets.
But with $171 million of the September sports betting handle in Pennsylvania, rivals DraftKings ($119 million) and Rush Street Interactive ($64 million) combined for slightly more. And don’t forget “new kid on the block” Barstool Sports, which seems well-positioned to become a force in its own right.
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Indiana, notes Roundhill, has DraftKings as its mobile leader in a state with 83.5% of the handle being made by that route. Rival FanDuel is runner up (a 43.1% market share in October vs. 27.2% in September), with BetMGM a distant third. But Roundhill reminds us that the multi-year deal just signed by William Hill/Caesars with the Indianapolis Colts signals that it, too, figures to be a significant player.
Colorado, which just launched sports betting in May, is getting a remarkable 98.4% of its handle from mobile. But neither handle nor revenue is reported per operator by the state.
So we know that Colorado already has caught Indiana in monthly handle at just over $200 million, but not who rules the roost. DraftKings and FanDuel no doubt have a large percentage of the bets. PointsBet, meanwhile, is based in Denver and will collect its share. A number of other prominent operators headlined by BetMGM, BetRivers are also involved in a very competitive market.
Speaking of BetRivers, the company enjoyed a brief monopoly in Illinois until mid-August when DraftKings and then FanDuel joined the party. PointsBet and William Hill/Caesars came on board in September.
Continuing around the U.S.
DraftKings is the leader in West Virginia, where 77% of the handle comes from mobile, as even a combined FanDuel and BetMGM handle from separate deals with The Greenbrier resort does not come close.
Iowa — which has a relatively modest 69% of its handle from mobile — is a competitive state but William Hill/Caesars leads a crowded online field that includes DraftKings and PointsBet.
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Then we have a monopoly – Rhode Island, where William Hill runs the entire show in a state with just 45% of revenues coming from mobile.
The report lists DraftKings as the leader in Oregon, however, the company doesn’t have a footprint there, does own SB Tech, which powers the Lottery’s exclusive sports betting offering. DraftKings and SBTech joined forces in April when the companies completed a unique tri-merger with special purpose acquisition company Diamond Eagle Acquisition Corp. DraftKings plans to complete the migration from Kambi’s back-end services to SBTech’s tech platform by the third quarter of 2021, DraftKings CEO Jason Robins said in mid-November.
Speaking of lotteries, the Washington, D.C. version runs that show — but a temporary brick-and-mortar sportsbook at Capital One Arena run by William Hill snagged four times as much revenue in September.
With better odds than the lottery product, both the permanent sportsbook coming to Capital One Arena as well as a FanDuel sportsbook coming to D.C. United’s Major League Soccer arena will likely dominate the market beginning next year.