DraftKings and FanDuel's Market Position
The sports betting industry has grown enormously since the 2018 Supreme Court decision to overturn PASPA, allowing states to legalize sports wagering.
The online sports betting business is currently worth more than $10 billion, and Goldman Sachs Research projects that it could grow to $45 billion as the market matures. While this industry is in its infancy, DraftKings and FanDuel have emerged as clear leaders, with some of the higher estimates putting their cumulative market share at over 80%.
This guide will address whether either company can be described as the sole market leader, why the two operators are so far ahead of the pack, and whether there's a difference in their availability.
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Who is the Market Leader?
The best way to conceptualize the situation is to know that no single sportsbook dominates this space. Instead, FanDuel and DraftKings are in similar dominant positions, with a massive gap between those two and the rest of the pack.
In July 2024, Eilers and Krejcik Gaming found that the two leading sportsbooks have combined to accumulate approximately two-thirds of US Sportsbook gross gaming revenue (GGR). Meanwhile, other competitors like BetMGM and Caesars were unable to claim even a third of the market share held by the two top companies.
FanDuel and DraftKings dominate the U.S. sports betting market. Source: Eilers and Krejcik Gaming.
Why do DraftKings and FanDuel Have a Huge Market Share Lead?
The two companies' domination can be attributed to several key factors that have separated them from the competition.
Perhaps most importantly, both companies capitalized on their early entry into the daily fantasy sports (DFS) space, building large user bases before the 2018 Supreme Court decision lifting the federal sports betting ban. While other sportsbooks were trying to get their operations off the ground, DraftKings and FanDuel had existing infrastructures into which they could integrate sports betting.
Strategic partnerships helped them further solidify their positions. Both DraftKings and FanDuel have partnered with major sports leagues and teams, increasing their brand visibility and credibility. FanDuel signed a multi-year deal with the National Basketball Association (NBA) that allowed them to offer free months of NBA League Pass and significantly increase the value proposition of having an account with them. On the other hand, DraftKings reached a deal that allowed them to join a partnership with Major League Baseball (MLB), which included receiving a significant investment from the league.
Another factor in the two sportsbooks' dominant position is their aggressive marketing and advertising push. For instance, it's been estimated that DraftKings spends over $500 million on marketing per year, and advertising data from the first three weeks of the 2024 NFL season shows the two leaders continued to spend at a high rate.
| Sportsbook | TV Advertising Spend | Growth over the Previous Year |
|---|---|---|
| DraftKings | $36.4 Million | 22% |
| FanDuel | $27.1 Millon | 14% |
Not only did these two sportsbooks have existing users they could bring from their DFS platforms, but they have also made strong customer acquisition pushes.
What Real DraftKings Bettors Think of the Sportsbook
Bonuses & Promotions:
- Pros: 40% of users appreciate the variety of promotions, including boosts and "no sweat" opportunities, which have led to successful bets and substantial winnings.
- Cons: 60% of users express dissatisfaction, citing a lack of free bets, deposit bonuses, and a less generous rewards program, especially for loyal customers. Technical issues with promotions not applying correctly, and complaints of misleading offers, further add to the frustration.
Functionality & User Experience:
- Pros: Users praise the app’s user-friendly interface, seamless navigation, and the ease of cashing in and out. The intuitive design makes betting straightforward.
- Cons: Frequent crashes, slow response times, and lagging have negatively impacted the user experience. Location verification has been deemed intrusive and unnecessary by some, and account verification issues have also been raised.
Cashiering:
- Pros: Users find the deposit and withdrawal process efficient, with many praising quick payouts, some as fast as 10 minutes. The interface for cashiering is also seen as intuitive.
- Cons: Issues with crashes and technical problems during key moments, like deposits or withdrawals, are frequently reported. The app’s verification process, which sometimes leads to account suspensions or extended delays in accessing funds, has been criticized.
Odds & Pricing:
- Pros: Some users report significant winnings, appreciating the pre-calculated odds and variety of sports available, particularly hockey.
- Cons: A significant number of users perceive the odds as rigged, with reports of the app changing odds during bet submissions and favoring the house in casino games. Technical issues like lagging and freezing during live betting make it difficult to place timely bets, further disadvantaging users.
Market Coverage:
- Pros: The app’s wide range of sports and events, along with an array of betting options, has been praised. Users enjoy the diverse offerings, including niche sports and prop bets.
- Cons: Performance issues such as freezing and lagging during live betting have been reported, leading to missed opportunities. The app’s handling of live odds, frequent changes, and premature event closings have also been criticized.
Support:
- Cons: A majority of users are dissatisfied with the app’s support, describing it as slow, unhelpful, and unable to resolve technical glitches or verification problems. Issues with contacting customer service and difficulties withdrawing funds are common complaints.
- Pros: A smaller group of users have reported positive experiences, noting helpful, fast, and reliable customer service responses.
What Real FanDuel Bettors Think of the Sportsbook
The sports betting app has received a mix of positive and negative reviews across various categories.
While users appreciate aspects such as competitive odds, a user-friendly interface, and quick payouts, there are notable concerns about technical issues, customer service, and the fairness of the betting system.
Bonuses & Promotions:
- Pros: Variety of betting options, fun bonuses
- Cons: Limited promotions for non-football sports, frequent technical issues with promos
- Suggestions: Offer more free bets, tokens, deposit matches, better loyalty rewards, and generous birthday bonuses
Functionality & User Experience:
- Pros: User-friendly interface and easy navigation
- Cons: Issues with app crashing, freezing, and intrusive location verification
- Suggestions: Improve app stability and location verification
Cashiering:
- Pros: Quick payouts, easy deposit methods, secure transactions
- Cons: Problems with withdrawals, account suspensions, and slow transfer of winnings
- Suggestions: Streamline the withdrawal process and address account suspension concerns
Odds & Pricing:
- Pros: Competitive odds appreciated by some users
- Cons: Accusations of manipulated odds, low payouts, and frequent high-risk bet suggestions
- Suggestions: Provide clearer and fairer odds, improve payout structures
Market Coverage:
- Pros: Extensive range of sports and betting options
- Cons: Performance issues (freezing, lag), inconsistent reward system, poor handling of injured players
- Suggestions: Address performance issues and expand betting options for more sports
Support:
- Pros: Some users report quick resolutions from support
- Cons: Unresponsive support, issues with account suspensions, unauthorized transactions, and verification problems
- Suggestions: Improve support responsiveness and resolve account-related concerns efficiently
Where is FanDuel Legal
Where are Draftkings and FanDuel Available?
Neither platform is available in every state where betting is legal, but both can be accessed in at least half of all American states, where they meet licensing requirements and adhere to state-specific regulations.
FanDuel
Fully Operational States (25 and D.C.): Arizona, Colorado, Connecticut, Washington D.C., Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Mississippi, North Carolina, New Jersey, New York, Nevada, Ohio, Pennsylvania, Tennessee, Virginia, Vermont, Washington, West Virginia, Wyoming.
DraftKings
Fully Operational States (26 and D.C.): Arizona, Colorado, Connecticut, Washington D.C., Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Maryland, Michigan, New Hampshire, North Carolina, New Jersey, New York, Ohio, Oregon, Pennsylvania, Tennessee, Virginia, Vermont, West Virginia, Wyoming.
You can find a table showing where these platforms are available.
| State | FanDuel Sportsbook | DraftKings Sportsbook |
|---|---|---|
| Arizona | Online & Retail | Online Only |
| Colorado | Online & Retail | Online Only |
| Connecticut | Online & Retail | Online Only |
| Washington D.C. | Online Only | Online Only |
| Illinois | Online & Retail | Retail & Online |
| Indiana | Online & Retail | Online Only |
| Iowa | Online & Retail | Online Only |
| Kansas | Online & Retail | Online Only |
| Kentucky | Online & Retail | Online Only |
| Louisiana | Online & Retail | Online Only (Varies by Parish) |
| Maine | Not Available | Online Only |
| Michigan | Online Only | Online Only |
| Mississippi | Retail Only | Not Available |
| North Carolina | Online & Retail | Online Only |
| New Hampshire | Not Available | Online Only |
| New Jersey | Online & Retail | Online Only |
| New York | Online Only | Online Only |
| Nevada | Retail Only | Not Available |
| Ohio | Online & Retail | Online Only |
| Oregon | Not Available | Online Only |
| Pennsylvania | Online & Retail | Online Only |
| Tennessee | Online Only | Online Only |
| Vermont | Online Only | Online Only |
| Virginia | Online & Retail | Online Only |
| Washington | Retail Only | Not Available |
| West Virginia | Online Only | Online Only |
DraftKings and FanDuel Revenue
Although these two sportsbooks have an extremely similar market share, that doesn't mean that the two companies' revenue is in lockstep.
DraftKings' revenue has grown consistently from 2020 to 2024, starting at $614 million in 2020 and reaching $3.67 billion by 2023. In contrast, FanDuel's revenue was significantly higher throughout, beginning at $5.69 billion in 2020 and reaching $12.31 billion by 2023, showing a much larger market presence.
Both companies experienced strong growth from 2020 to 2021, with DraftKings more than doubling its revenue and FanDuel increasing by over $2 billion. However, FanDuel's growth remained steadier, while DraftKings saw a more gradual climb, with a significant increase in 2023.
In 2022, DraftKings' revenue grew by nearly $1.4 billion, whereas FanDuel saw an even larger increase of around $2.35 billion. This trend continued into 2023, with DraftKings growing by about $1.4 billion again, while FanDuel's revenue surged by another $3.35 billion, reinforcing its dominant position.
The most recent data from 2024 shows both companies continuing to expand, with DraftKings at $1.1 billion in Q2 and FanDuel reaching $4.67 billion. Although DraftKings is growing rapidly, FanDuel maintains a clear lead in overall revenue, highlighting its stronger market position.
Last Word
The U.S. sports betting market continues to grow rapidly, with DraftKings and FanDuel leading the charge thanks to their early start, strategic partnerships, and aggressive marketing. These factors highlight why they remain dominant despite increasing competition.
- Both platforms capitalize on their daily fantasy sports origins to maintain a strong user base.
- Strategic league and team partnerships bolster brand credibility and reach.
- Aggressive spending on marketing ensures sustained customer acquisition and engagement.
As the market evolves, DraftKings and FanDuel are well-positioned to maintain their leadership in the sports betting industry.
References and Page History
Current (February 11, 2025)
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Meet our Authors
Paruyr Shahbazyan started his business career as an entrepreneur in 2000. Over 13 years, he learned business and leadership, which laid the foundation for his career.
In 2013, Paruyr entered the sports and betting industry as the founder and president of Bookmaker Rating, an online media platform he led until 2020. The platform focuses on in-depth analysis and insights in sports betting and has gained a reputation for quality content.
In 2022, Paruyr co-founded Azuro, a decentralized betting protocol. This shows his commitment to technology in the sports betting space. Through all these experiences, Paruyr has been shaping and influencing the betting industry, setting new trends and standards.
Innovation in sportsbetting comes from a deep understanding of both technology and the human element of sports.
Strategic Vision
Paruyr's vision is to revolutionize the sports entertainment industry by integrating technology. He sees the future of sports entertainment as a blend of traditional sports knowledge with innovative tech solutions, like decentralized protocols, to enhance user experience and fairness. He aims to create platforms that are not only user-friendly but also uphold the highest standards of ethical reporting, contributing to a more responsible and enjoyable sports culture.
