DraftKings has found quite the home in Massachusetts.
The latest Massachusetts sports betting revenue report shows just how much the Boston-based sportsbook dominates the market in its home state.
DraftKings Massachusetts totaled $290.1 million in handle in September. Those numbers made it the most popular online sportsbook in Massachusetts by far.
September further cemented DraftKings’ position as the top option for bettors within the state. But why is that?
DraftKings is at or near the top in most states it operates in. But not to the same degree they are in the Bay State. Furthermore, there are plenty of instances where other sportsbooks command that top spot.
Does home-field advantage play a role in the Boston-headquartered operator’s dominant run?
Here’s a closer look.
DraftKings had a 58% market share during September
The operator’s $290.1 million handle was 58% of the total market in September, the most recent month with sports betting data. The next closest sportsbook was FanDuel, which commanded a handle of $121.9 million and 24.3%.
A state boasting DraftKings and FanDuel Massachusetts as its top sportsbook operators in both handle and market share is not a surprise. These are the two largest players in the space. In other states, it’s a constant jockeying of position for the two.
But a 58% market share for DraftKings is staggering. Typically, states see a much closer margin between its top two sportsbooks.
DraftKings’ market share in some of the surrounding states
Let’s look at some surrounding states’ September reports.
In New York, one of the biggest sports betting markets in the U.S., DraftKings took home $710.5 million in handle, while FanDuel saw $682.5 million. That’s a 40% market share.
In Connecticut, DraftKings took in $79 million of the state’s $170.1 million handle last month, or 46%.
Both are similar trends to Massachusetts, but not as high as that 58% mark.
A closer look at DraftKings’ impressive Massachusetts run
Online sports wagering has been legal in Massachusetts since March of this year. So we’re looking at a seven-month window, which is not a massive sample size. But there’s a crystal-clear trend so far.
DraftKings has never had a market share below 47% for a single month. That 47% share came in March when the industry first launched. In most launches, customers create multiple sportsbook accounts and test out as many as possible to find their favorites. In April, the following month, its market share jumped to 52%.
Since June, though, the sportsbook has had at least a 50% monthly market share. September’s 58% is an all-time high, along with its $290.1 million handle. It’s the highest handle since April’s $283.8 million.
Looking at the total market share for Massachusetts’ entire seven-month run, DraftKings boasts roughly a 51.5% market share.
How DraftKings compares to rival FanDuel all-time in Massachusetts
FanDuel is the biggest competitor, not just in Massachusetts but nationally. They’re the big two when it comes to sports betting.
That’s evident in Massachusetts, as these two have consistently been the two most popular operators. But it hasn’t been too close.
FanDuel’s market share all-time in Massachusetts is about 29.5%. This past month, its market share came out to 24.4% – a record monthly low for the operator. In fact, FanDuel’s market share has essentially dropped since opening in March. The only month-to-month increase in market share came in July, when it saw a 0.2% bump.
Here’s a look at how FanDuel’s market share dipped since:
- March: 33%
- April: 31.6%
- May: 30.5%
- June: 29.7%
- July: 29.9%
- August: 25.8%
- September: 24.4%
Conversely, here’s a glimpse at DraftKings’ month-to-month market share:
- March: 47%
- April: 52%
- May: 49.8%
- June: 50.8%
- July: 50.3%
- August: 52.7%
- September: 58%
Examining DraftKings’ rise on the national stage
Numbers from September are still trickling in across the country. But based on August’s numbers, DraftKings is the most popular sportsbook across the U.S.
According to gaming analyst Eilers & Krejcik Gaming, DraftKings’ market share reached 32.5%. FanDuel’s share totaled 29.6%.
That’s a much closer discrepancy than Massachusetts, but it makes sense. There are so many sportsbooks throughout the country, and each state has different demographics and favorites regarding operators. But DraftKings’ lead in Massachusetts aligns with the national trend.
EKG’s study found that BetMGM, Caesars and BetRivers followed at third, fourth and fifth, respectively.
“Per our estimates, DraftKings took the US online gambling (online sports betting plus online casino) GGR share lead in August 2023, a major move that signals a shifting competitive landscape – one that we believe will continue to shift as big new brands Fanatics and ESPN Bet begin to ramp,” a LinkedIn post from EKG read.
DraftKings totaled $875 million in revenue nationally and a positive adjusted EBITDA of $72.9 million in Q2 this year. The revenue total was an 88% jump from the same quarter a year ago. For what it’s worth, 2022 was a record year for revenue within the company.
Why is DraftKings Massachusetts’ favorite sportsbook?
DraftKings’ headquarters is in Boston. So, it makes sense that the operator has great brand awareness compared to others within Massachusetts.
Online sports betting in Massachusetts isn’t even a year old, but daily fantasy sports have been legal for quite some time now. And DraftKings has a number of DFS partnerships with the state’s top professional teams. DraftKings is the official DFS Partner of the Boston Bruins, Boston Celtics and Boston Red Sox.
Those aren’t traditional sports betting deals. FanDuel, on the other hand, is the official sports betting partner of the Bruins.
It is, however, excellent exposure for the DraftKings brand.
For instance, the Celtics faced off against the Knicks on Tuesday in a preseason NBA game. The Celtics tweeted out a graphic of their starting five lineup, tagging the sportsbook. It’s often branded as “Tonight’s DraftKings Starting 5.” The Celtics’ Twitter account has more than 4.1 million followers.
When DraftKings launched in the state, it was the first sportsbook to feature a Massachusetts-specific commercial, featuring names like Lenny Clarke, David Ortiz, Brian Scalabrine and Zdeno Chara.
Massachusetts’ love for DraftKings lines up with the national trend but on a whole different level. It was deeply rooted within the community before online sports betting was legalized. Having headquarters within the state is also a major plus.
Time will tell just how much DraftKings’ market share will change, as EKG’s post said. But it’s tough for new competitors to truly cement themselves as a top player with the likes of DraftKings and FanDuel.
DraftKings’ 2023 run has been impressive, and if this trend continues through December, it will only continue to grow on the national level. In Massachusetts, though, expect even bigger things from the hometown favorite.
