Sports Betting Investor Discussion

Consumer, TMT


On January 26, 2024, DeMatteo Research hosted a discussion on the sports betting landscape with four investors. The group shared thoughts on recent market share dynamics, major players (FLTR LN, DKNG, ENT LN, ESPN BET), UK Regulation, Q1’24 trends, valuations, and the longer-term opportunity around iGaming.

Publicly traded companies mentioned herein: DraftKings Inc (DKNG), Entain PLC (ENT LN), Flutter Entertainment PLC (FLTR LN), Las Vegas Sands Corp (LVS), MGM Resorts International (MGM), Walt Disney Co/The (DIS)

Market Share Battle

A FLTR investor started the discussion with his reasons for optimism, including FanDuel’s market share gains since the NFL season started. He believes DKNG’s positive market share trends earlier in 2023 were largely the result of aggressive promotional activity while FLTR pulled back. Based on state-reported data and YipitData, he argues that DKNG has been ceding market share to FanDuel since late Q3/early Q4, which has continued into 2024, as DKNG’s market share has fallen from the high-30% range to the current high-20%/low-30% range while FanDuel has increased to ~40%. Longer term, he believes there must be a narrative shift from DKNG jockeying for the #1 position to more of an UBER/LYFT setup with FanDuel sustaining a #1 position based on its abundant actuarial data that creates a competitive moat. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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