Four indoor (and shuttered) sports venues had a combined market share of less than a fraction of the percentage in Virginia.
The loss of several online sports operators in Virginia and other states may not be much of a gain for those still holding out.
Figures submitted to the Virginia Lottery Board on Wednesday showed that FanDuel and DraftKings are the largest operators in the Commonwealth, with market shares of 39. 9% and 27. 4%, respectively, during the first part of 2024.
BetMGM is in third place with a market share of 10. 7% from January to June, according to the board presentation. No other operator had a double-digit market share in the state, with sportsbook Caesars in fourth place with 5. 8%. bet365 followed with 5. 2%.
Virginia also lost several operators. But figures presented to the lottery committee Wednesday suggest their departures probably wouldn’t generate much business to be gained, since they all had small market shares.
888 (SI Sportsbook), Betway and SuperBook have announced plans to close their online sportsbooks in the Commonwealth (among other jurisdictions), and the lottery is working with operators on their exits, or contemplating doing so. DO. Meanwhile, Unibet already let its license expire and closed its operations in Virginia in April.
888 had only a market share of 0. 06% in the first part of 2024, according to the lottery committee’s filing, while Betway controlled 0. 26% and SuperBook 0. 11%. Unibet’s market share over 3 months of activity was 0. 04%.
In other words, the four closed and closed sportsbooks had a combined market percentage of less than a share of a percentage in Virginia. Even if a single operator monopolized all of those activities, this would have little effect on the existing hierarchy of the state.
888 (now Evoke) recently sold its US client assets to Hard Rock Digital, while SI Sportsbook’s Virginia site now directs visitors to Hard Rock Bet. However, the Virginia figures also suggest that the departure of operators such as Betway, SI and SuperBook from other states would likely have little effect on the festival in those jurisdictions.
A note from Citizens JMP Securities to clients last month said the seven largest corporations in the US online gambling industry account for about 98% of sports betting revenue and 90% of from iGaming. According to JMP analyst Jordan Bender, this leaves “the remaining 36 active operators competing for a small group of players. “
Bender added that departures are outpacing new entrants, but that Fanatics has managed to regain a market share of around 3-4% without a “first-mover advantage,” with the help of its acquisition of the assets. PointsBet Americans and their promotional expenses. Training
In Virginia, however, Fanatics accounted for just 1. 65% of the market in the early part of this year, according to the lottery committee’s filing.
“We expect outflows to slow, especially in the coming years, with higher capital burdens, increased customer protection/regulation, and market share consolidation among larger players,” Bender wrote.
Further shakeup in the market is not due to departures, but to a plan by one of the two largest operators to impose a surcharge on winning bettors in states with higher tax rates.
DraftKings last week announced its idea to implement a “gambling surtax” on winning bets starting next year, which will help it regain the top burden of doing business in Illinois, New York, Pennsylvania and Vermont.
While the Boston-based sportsbook is confident that the quality of its product will keep its consumers loyal, the surcharge plan opens the door for other operators looking to attract DraftKings users by following suit.
BetRivers operator Rush Street Interactive Inc. announced Monday that it plans to impose a visitor surcharge, “reaffirming its commitment to offering an exceptional price to its players. “
A note from Jefferies to clients on Tuesday revealed a bearish-bullish split among investors over the DraftKings concept, with the negative camp involved in the company ceding to FanDuel.
Flutter Entertainment PLC, the parent company of FanDuel, is expected to release and discuss its latest financial effects next week.
“FanDuel can simply oppose [the DraftKings premium] and get more percentage of new customers, whether it generates more EBITDA, which would be negative for DKNG’s stock,” the DKNG analyst recently wrote. Jefferies, David Katz.