Four closed (and closed) sportsbooks had a combined market share of less than a percentage share in Virginia.
The loss of several online sports operators in Virginia and other states may not constitute much of a gain for those still holding out.
Figures submitted Wednesday to the Virginia Lottery Board showed that FanDuel and DraftKings are the most sensible operators in the Commonwealth, with market shares of 39. 9% and 27. 4%, respectively, during the first part of 2024.
BetMGM ranks a remote third, with a market share of 10. 7% from January to June, according to the board’s filing. No other operator had a double-digit market share in the state, with fourth-place sportsbook Caesars accounting for 5. 8%, followed by bet365 at 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 all announced plans to shut down their online sports betting in the Commonwealth (among other jurisdictions), and the lottery is working with operators on its launches, or are contemplating doing so. Meanwhile, Unibet has already let its license expire and shut down its operations in Virginia in April.
888 had just a 0. 06% market share 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 for just over 3 months of activity is 0. 04%.
In other words, the four closed and closed sportsbooks had a combined market share of less than part of a percentage in Virginia. Even if a single operator were to monopolize all such activities, this would have little effect on the existing hierarchy of the State.
888 (now Evoke) recently sold its US consumer-facing assets to Hard Rock Digital, while SI Sportsbook’s Virginia site is now urging visitors to turn to Hard Rock Bet. However, the Virginia figures also suggest that the departure of operators like Betway, SI, and SuperBook from other states may have little effect on the festival in those jurisdictions.
A note from Citizens JMP Securities sent to its clients last month said that the seven largest corporations in the online gambling industry in the United States account for about 98% of sports betting profits and 90% of iGaming profits. According to Jordan Bender, an analyst at JMP, this leaves “the remaining 36 active operators competing for a small pool 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 first part of this year, according to the lottery committee’s filing.
“We expect exits to slow, especially in the coming years, with increased capital loading, increased customer protection/regulation, and consolidation of market share among the largest players,” Bender wrote.
Further restructuring in the market is not due to exits, but to the plan of one of the two largest operators to impose a surcharge on winning bettors in states with higher tax rates.
DraftKings announced last week its idea to implement a “gambling surtax” on winning bets starting next year, helping it take back the overhead 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 coming back, the add-on 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 results 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.