Anticipated Changes in Sports Betting Market Share Due to Mergers and Acquisitions in 2024
In the rapidly evolving world of US online sports betting, the duopoly of FanDuel and DraftKings is facing increased competition. The main companies expected to challenge their dominance in 2024 are BetMGM, Fanatics, and Caesars.
BetMGM, in particular, is making significant strides, closing the gap on FanDuel and DraftKings with stronger sportsbook revenue growth. Fanatics and Caesars are also emerging as formidable competitors, contributing to a more competitive market landscape.
FanDuel, despite remaining the leader, has experienced a slowdown in sportsbook revenue growth. This prompted the duopoly to focus on innovation and product development to maintain their positions. The market is evolving with new product types like prediction markets, which could further diversify the competition in the near future.
Meanwhile, the domestic sports wagering industry is maturing at a rapid pace. Bet365, for instance, has a 8% share of the Ohio online sportsbook market and plans to open an 800-person office in Colorado in 2024. Some experts believe that in 2024, an online sportsbook operator other than BetMGM and Caesars Sportsbook could gain 5% to 10% market share.
The competition is not just limited to traditional sports wagering. Several states have moved to ban daily fantasy sports games that blur the line between fantasy and sports wagering. This could potentially impact companies like Prize Picks and Underdog Sports, who could face loss of access to markets such as Michigan, and potentially worsen if Florida and New York ban "DFS+" contests.
Moreover, EKG predicts a potential "Emerging Verticals SuperCo" could consolidate share of high-margin verticals to which OSB operators like FanDuel and DraftKings have little to no exposure. Additionally, EKG expects gaming companies beyond the realms of iGaming and sports wagering could draw interest from suitors in 2024.
The US iGaming and OSB industries are expected to continue mergers and acquisitions in 2024. With the market becoming more competitive and dynamic, it will be interesting to see how the landscape unfolds in the coming year.
- The emergence of BetMGM, Fanatics, and Caesars as competitors in the US online sports betting market could lead to further mergers and acquisitions, potentially consolidating share of high-margin verticals that OSB operators like FanDuel and DraftKings have little to no exposure.
- As the market evolves with new product types like prediction markets, daily fantasy sports companies like Prize Picks and Underdog Sports could face loss of access to markets such as Michigan, and potentially worsen if Florida and New York ban "DFS+" contests.
- With the domestic sports wagering industry maturing and the competition becoming more intense, gaming companies beyond the realms of iGaming and sports wagering could draw interest from suitors in 2024, suggesting a possible expansion in the mergers and acquisitions landscape.
