True to its word, FanDuel is keeping the pressure on in PA sports betting.
Chip leader bullying the table
Flutter CEO Peter Jackson said last month:
“We are continuing to push hard on driving some customer acquisitions and we’re very, very pleased with the acquisition costs that we’re seeing and the lifetime value dynamics that we’re also seeing,” Jackson said.
“It’s giving us real conviction and we’re leaning in very heavily to acquire as much business as we can.”
What is driving FanDuel success?
The FanDuel business is indeed delivering on Jackson’s promise. FanDuel dished out $5.5 million in promo spend in May – five times that of DraftKings – and the most in the market
That helped the operator to a 42% share of online handle. Yet FanDuel showed the strength of its trading and Same Game Parlay (SGP) offering, holding 13.1%.
For comparison, DraftKings held 7.4% and BetMGM held 8.4%.
Rest of the top five
After the big three, Barstool came in fourth with a 5% net gaming revenue (NGR) share, ahead of BetRivers at 4%.
No other operator topped 2%. Barstool has asked to be judged on NGR share rather than handle, given its relative lack of promo spend.
How did wider PA sports betting market fare?
Overall, PA sports betting handle fell 14% month-on-month to $493 million in May.
Sports betting gross gaming revenue was down around 8% sequentially to $47.8 million. After deducting $12.8 million in promotional credits, NGR was $35 million.
That slight decline is in line with other states around the US. NJ sports betting handle, for instance, was down 17% in May.
Other interesting results in PA sports betting
Of note, Caesars was the 11th-largest brand in the PA market, well behind its national stature. That appears to reflect a deliberate strategy from the casino giant, with just $720 dished out in promos.
Caesars has said PA sports betting is not a priority given the state’s 36% effective tax rate. The company has not rolled out its new technology stack to the state either.
Elsewhere, Pennsylvania cleared $12.8 million in taxes.