Here comes DraftKings Casino.
The change of guard felt somewhat like an inevitability given recent trends dating back over the last 11 months.
In April 2022, BetMGM held nearly 30% of GGR shares while DraftKings trailed by roughly 10 percentage points. By last fall, however, DraftKings (inclusive of its Golden Nugget property) had significantly closed the gap prior to completing its ascension to the top spot last month.
Here is a visual look at the data from the report:
The shift places DraftKings, BetMGM, and FanDuel Casino all within arm’s length of one another, leaving one to wonder what comes next for the market’s dominant trio.
DraftKings Makes Its Move, But Is a FanDuel Response Coming?
Eiliers & Krejcik report paints an optimistic outlook for FanDuel Casino, noting a recent emphasis on overall product enhancement and direct acquisition. With recent additional marketing focus and improvements to its casino product, FanDuel’s incremental rise in GGR share over the past year figures to continue over the coming months.
The report also speculates the possibility of FanDuel using its considerable punch to make a splashier move with the possible acquisition of the struggling Rush Street Interactive, which is fronted by BetRivers Casino app.
Such a move makes sense, given Rush Street maintains a meaning GGR share of just around 8 percent. Still, RSI has experienced a hit in its standing over the past year, losing meaningful ground as it runs a distant fourth in the arms race.
A potential union between FanDuel and Rush Street would vault FanDuel, the current market share leader in the online sportsbook space, ahead of DraftKings Casino.
Growth Remains Stagnant But Revenues Increase
There remain just five states which offer legal online casino gaming. There’s no certainty on which state might next join the likes of New Jersey, Pennsylvania, Michigan, West Virginia, and Connecticut nor is there any clarity on when it may occur.
Still, despite stagnant new state growth and a cloud of uncertainty hanging over the immediate future, growth will come in time. In the interim, casino gaming revenues continue to surge in established markets.
The Pennsylvania online casino market saw explosive growth in March with $148,189,028 of gross revenue, good for a whopping year-over-year increase of 25.5 percent. The state also set monthly revenue records in both table games and slots. When you consider that our DraftKings Casino bonus gives new players a $2,035 bonus, growth will continue into 2024.
This recent growth highlights a few obvious yet considerable points. Perhaps the most important element in play here is that interest in online casinos continues to surge in established markets. Market maturity and established gaming options have not thwarted enthusiasm for the product or flatlined it.
This bodes for the long-term outlook in these five established states but also signals the massive opportunity that lies ahead. The excitement built around launches figures to set the floor of revenue opportunity.