FanDuel and DraftKings Set to Benefit from Established DFS Userbase

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: June 19, 2023

The General Assembly of North Carolina has approved legislation to authorize mobile sports betting, which is a big development for the sports wagering sector and the investing community. The measure is anticipated to be signed into law by Governor Roy Cooper, opening the door for the launch of online sports betting in the state ahead of the next Super Bowl.

FanDuel and DraftKings, two of the top online sportsbooks, anticipate significant gains from legalization. These two massive companies were singled out by a JMP Securities analyst as prospective winners because of their established positions in the daily fantasy sports (DFS) sector in the region. The analyst pointed out that FanDuel and DraftKings are in a good position to cross-sell their databases into the sports betting app because they have essentially comparable customer bases. Currently, these businesses collectively account for over 75% of American sports betting income.

Flutter Entertainment’s FanDuel Ownership Gives Competitive Edge

Flutter Entertainment owns a 95% ownership in FanDuel, the leading US online sportsbook operator, and Boyd Gaming holds the remaining 5%. Given the previous failure of legislation of a similar nature in places like Georgia and Texas, the passing of mobile sports betting legislation in North Carolina is a welcome surprise.

The significance of North Carolina comes from its population, which makes it the tenth-largest state in the US, as well as from the fact that it is represented in all of the top North American sports leagues. With Major League Baseball (MLB) being the lone exception, the state is host to clubs from the National Basketball Association (NBA), National Football League (NFL), and National Hockey League (NHL). North Carolina also has several notable college athletic teams. With college basketball, including Duke and the University of North Carolina, having an especially unique place in the hearts of the people who live there. The industry’s and the state’s efforts to generate money rely heavily on the mobile sports betting debut that is scheduled for January 2024.

Genius Sports Positioned to Thrive with Increased Wagering Activity

The absence of legal casinos gives DraftKings and FanDuel in North Carolina another advantage. However, Caesars Entertainment may potentially profit since it oversees two tribal casinos in North Carolina that operate under the Harrah’s name.

Genius Sports, a company that provides statistics for sports betting, was also singled out as a possible winner in North Carolina. Genius Sports was cited by the analyst from JMP Securities as the best option in the sports betting market. The analyst said that the company’s income creation is correlated to the number of wagers, thus a rise in betting activity results in additional revenue for the business.

Overall, the legalization of mobile sports betting in North Carolina opens a lot of possibilities for major industry companies like FanDuel, DraftKings, Caesars Entertainment, and Genius Sports. These businesses are ideally situated to take advantage of the potential revenue growth in the North Carolina sports betting industry thanks to a favorable demography and a robust sports culture in the state.