Numbers presented Wednesday to the Virginia Lottery Board showed that FanDuel and DraftKings are the top operators in the commonwealth by a wide margin, commanding market shares of 39.9% and 27.4%, respectively, for the first half of 2024.
Slide from today's meeting of the Virginia Lottery Board. FanDuel had nearly 40% market share in the state thru the first 6 months of 2024, followed by DraftKings with 27.44%. 888, Betway, and SuperBook, which are exiting the market, accounted for 0.43% share... combined.888 had only 0.06% market share during the first half of 2024, the lottery board's presentation noted, while Betway managed 0.26% and SuperBook 0.11%.
Bender added that exits are outpacing new entrants, but that Fanatics has managed to claw out a market share of around 3% to 4% without a “first-mover advantage,” albeit with the help of its acquisition of PointsBet’s U.S. assets and promotional spending. “We do not expect exits to materially slow in the coming years with elevated cost of capital, an increase in consumer protection/regulation, and market share consolidating amongst the larger players,” Bender wrote.A bigger shakeup to market share may not come from exits, but from the plan by one of the two largest operators to impose a surcharge on winning bettors in states with higher tax rates.