FanDuel Reaches 50% Market Share in United States
Pavlo Gonchar/SOPA Images/LightRocket via Getty Images. Pictured: A FanDuel photo illustration.
FanDuel's parent company, Flutter, announced Thursday that it had a 50% market share in the United States in the fourth quarter, with the leading share in 15 of the 18 states in which it operates.
The sportsbook last reported that it had a 42% national market share at the end of September after the first full month of college football and the NFL.
The company said it brought in $3.2 billion in revenue on the year, up 67% from last year. It also said it acquired more than 1.2 million U.S. bettors in 2023 and has done so while scaling down its marketing. Not counting marketing spend for its new launches in Maryland and Ohio, the US operation had a profitable quarter.
That has been done by reducing customer acquisition costs and ramping up its hold percentages by being the leader in parlay products.
Flutter CEO Peter Jackson said on CNBC Thursday that nearly three-quarters of customers during the Super Bowl used their parlay product, "which is really helping our hold rates."
Of all active FanDuel bettors, 86% placed a parlay in 2022, and the company's online hold was a remarkable 10.6% for the fiscal year.
Earnings reported by Flutter on Thursday boasted that it had US revenues of $900 million more than its nearest competitor, DraftKings, doing so with one-third of its losses.
How would you rate this article?