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February 13, 2024

The Future of Online Betting: Key Players, Growth Opportunities, and Legalization Potential

Emily Patel
Written byEmily PatelWriter
Researched byAmara NwosuResearcher

Introduction

The recent Super Bowl LVIII may not have been a profitable event for regulated sportsbooks, but the long-term outlook for online betting stocks remains positive. In this article, we will explore some key players in the online betting industry and discuss the potential growth opportunities.

The Future of Online Betting: Key Players, Growth Opportunities, and Legalization Potential

DraftKings and Flutter Entertainment

DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT) are two major players in the online betting market. Despite facing competition from new entrants like Bet365, ESPN Bet, and Fanatics, these companies have maintained a duopoly, accounting for approximately 70% of the US market. Flutter Entertainment's recent listing on the New York Stock Exchange is seen as a positive move by analysts, as it could open up new markets and financing opportunities.

Market Value and Competition

Flutter Entertainment is now the second-largest gaming company trading on a US exchange, following Las Vegas Sands (NYSE: LVS). FanDuel, a subsidiary of Flutter Entertainment, holds the number-one spot in US sports betting revenue share, with DraftKings in second place. Other notable players in the market include BetMGM, Caesars Sportsbook, and ESPN Bet.

The Impact of ESPN Bet

The launch of ESPN Bet in November has had an impact on the market share of FanDuel and DraftKings. While FanDuel's market share has remained steady, DraftKings has ceded a modest share. However, DraftKings sees this competition as an opportunity to attract more participants to regulated sports betting.

Potential for Legalization

Although the chances of California, Texas, and Florida legalizing sports wagering in the near term are slim, other states like Georgia and Missouri are more likely to approve mobile sports wagering this year. The potential tax revenue generated by sports betting is a major incentive for states to legalize it, as it can contribute significantly to state budgets.

Conclusion

Despite the challenges and competition in the online betting industry, companies like DraftKings and Flutter Entertainment continue to dominate the market. With the potential for new markets, financing opportunities, and legalization in certain states, online betting stocks have the potential for further growth. Investors should consider these key players when wagering on the future of the online betting industry.

About the author
Emily Patel
Emily Patel
About

Emily "MobiMaven" Patel is the UK's rising star in the mobile casino writing arena. Fusing her tech acumen with a sharp wit, she brings the world of mobile gaming to readers' fingertips, ensuring every tap leads to top-tier content.

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