New analysis from JMP Securities has revealed DraftKings and Fanatics as January’s biggest sports betting market share gainers in the US.
New analysis from JMP Securities has revealed DraftKings and Fanatics as January’s biggest sports betting market share gainers in the US.
DraftKings posted the strongest performance, securing the largest handle market share gains both month-over-month and year-over-year among major operators, according to JMP.
The company’s success came despite flat year-over-year gaming margins of 11%.
In contrast, market leader FanDuel saw its position erode, with JMP reporting the company lost 68 basis points of market share by handle month-over-month and a more substantial 512 basis points year-over-year.
JMP noted FanDuel is expected to address current trends during its upcoming 4 March earnings call.
Fanatics continued its impressive momentum in the sector, with JMP highlighting that the relatively new entrant has now captured a 6.7% market share.
This puts Fanatics within striking distance of BetMGM, trailing the industry’s third-largest sportsbook by just 80 basis points.
The shifting competitive dynamics come as major operators adjust their promotional strategies.
JMP noted that while DraftKings and FanDuel maintained or increased promotional spending in January compared to the previous year, smaller operators reduced their promotional activity.
However, DraftKings has also indicated plans to reduce promotional spending in 2025.
Beyond market share shifts, overall sports betting volume showed robust growth to start the year.
JMP reported that same-store betting handle grew 20% year-over-year in January across reporting states, marking an acceleration from the 15% growth seen in Q4 2024.
The analysts noted handle growth had slowed in the fourth quarter of 2024 due to challenging year-over-year comparisons, when parlay handle growth had reached 40% to 70%.
However, these comparisons are expected to ease in the second quarter of 2024.