The New York sports betting empire has experienced some major and a few lows since its launch began on January 8th. Additionally, one sportsbook has become the predominant choice for consumers in the Empire State.
FanDuel Has Dominated Market Share in New York
When the operation first began, Caesars had the most significant promotion for new users. However, they couldn’t keep it up as the marketing aspect of the business was proven to be very costly, with the additional 51 percent tax rate.
Another major competitor, also known as DraftKings, has lessened the gap with FanDuel in New York, according to some recent reports. However, FanDuel is undoubtedly still the clear leader in the industry’s biggest market.
In a state that has generated $12.97 billion in the overall handle and $1.06 billion in gross gaming revenue, the company has captured nearly half of the market share. FanDuel has accepted over $5.2 million in wagers, while the gross gaming revenue is slated at $501 million.
DraftKings generated $3.49 billion in regards to its handle and $265 million in gross gaming revenue, while Caesars generated $2.3 billion in its overall handle and $183 million in gross gaming revenue. FanDuel has claimed 47.2 percent of the market share, which is far more than DraftKings, which has taken 25 percent.
Caesars has posted solid numbers, with 17.3 percent of the market share. Breaking down the numbers even further, it only leaves 10.5 percent to be shared among the six other bookmakers that take bets in the Empire State.
High Win Rates Have Been the Keys to Success
Taking more wagers than your competitors is very important for any sports betting platform. In addition, winning against the public is also a key contributor to the business, as FanDuel’s hold rate is right at 9.9 percent.
DraftKings’ hold rate is registered at 7.6 percent in the state, while Caesars has been at eight percent. The national average for the industry is registered to be 7.2 percent.
The numbers will continue to change before the end of the year as the fourth quarter offers a lot of sporting events for the general public to place wagers on. FanDuel has continued this dominance in other jurisdictions, as well as the monthly handle reports show.
FanDuel is also the official sports betting partner of the iconic New York Yankees. The company also has many other partnerships in the industry that has kept them above the rest of the competition. The average betting volume hasn’t reached its peak yet in New York, but things could change as the NFL is near its halfway point after this weekend.
FanDuel May be Adding Another Major Investor
As a result of an arbitrator’s ruling Friday in New York, Fox Corp. can purchase a big stake in FanDuel for $20 billion. The equity stake could be evaluated at $4.1 billion.
According to a news source, the Judicial Arbitration and Mediation Services (JAMS) ruling in the case against FanDuel parent company Flutter gives Fox “a 10-year call option that expires in December 2030 to acquire 18.6% of FanDuel for $3.72 billion, with a 5% annual escalator.”
FanDuel is the biggest bookmaker in the industry and will continue to expand as more states allow sports betting.
