DraftKings gained US market share against its online sports betting rival FanDuel in July, according to analysts at JMP Securities.
The daily fantasy sports and sports betting operator held 37.8% of the total US online gaming market in reported states during the month, up from 35.5% in Q2 2024.
While the analysts said the market share rebound was anticipated, it occurred during the seasonally slowest month of the year.
JMP added it followed overall underperformance from gaming margins since Q4 2023.
The 228 basis points of market share gains, they said, was largely driven by gaming margins recovering to >10%.
The business will enter the football season in late August with a handle market share in-line with its all-time high, the analysts said.
They said this suggested further upside to market share and estimates if gaming margins continue to see upward momentum.
Could the surcharge have affected DraftKings market share?
The market share updates come the week following DraftKings’s decision to abandon its plan on imposing a surcharge on customers winnings in high-tax states.
Some analysts had predicted this could have negatively affected DraftKings market share if it went ahead.
Other winners at the beginning of Q3 included BetMGM, which saw its market share rise to 6.7% from 5.3% the previous quarter.
JMP highlighted the joint venture has seen its handle growth accelerate in four consecutive months to 29% in July, compared with 33% and 32% for DraftKings and FanDuel respectively.
Caesars continued to see tailwinds in its sportsbook, the analysts said, with the market share growing from 3.8% to 5.4% in July.
FanDuel saw the steepest market share decline, falling from 45% in Q2 to 40.1% in July.
However, the Flutter platform continued to enjoy the highest margins among its competitors, which remained steady at 12.7%.
Penn-owned ESPN Bet’s market share was largely static, falling to 1.7% from 1.8%, amounting to 3% excluding New York.