DraftKings Inc Ordinary Shares - Class A DKNG

DraftKings Seeing Growing Engagement and Revenue Share Amid a Crowded Competitive Landscape

DraftKings has extended its leading daily fantasy sports position, first established in 2012, into one of the top positions in the North American sports betting and iGaming market, with the company, along with FanDuel and no-moat MGM, holding a combined 75%-80% revenue share. While sports betting and iGaming are currently legal in around 40 and seven states, respectively, we expect another handful to be added to each market the next few years, as governments look to capitalize on tax revenue generated from the growing activity, which is benefiting from an improved product (parlay and in-play wagering) and technology (customized content) offering across the industry. As a result, we estimate the North American sports betting and iGaming market to reach more than $40 billion in revenue in the early part of the next decade from over $16 billion in 2023.