The market for sports betting apps in the United States is getting larger, while the market share of its two dominant players, FanDuel and DraftKings, is getting smaller. Don't hear what I'm not saying though...both FanDuel Sportsbook & Casino and DraftKings Sportsbook & Casino are continuing to grow, it's just that some new entrants are elbowing their way in.
FanDuel and DraftKings had a combined market share of 84.2% in June 2020. As of March 2021, that share has sunk to 58.7%. We're measuring market share by daily active users. Market share data is iOS only as Google Play sportsbook apps in the US only launched a few weeks ago.
PointsBet: Sports Betting is the fastest growing app year-over-year in 1Q21 by average daily active users at 712%. Keep in mind that BetRivers Sportsbook and Barstool Sportsbook & Casino had not launched in 1Q20 and so they are not in consideration here. Since September 2020, BetMGM has consistently increased its market share, now sitting at 15%.
If you are an Apptopia customer doing your own research, keep in mind that I have aggregated these apps for this analysis. For example, if you want to analyze William Hill, there are actually three separate apps to combine for a holistic view. Much like how Starbucks has a different app for each country, sportsbook apps have a different app for each state because each state treats the legality of sports betting differently.
As more states in America legalize sports betting, it looks like new user acquisition for sportsbook apps in the US will overtake that of the UK this calendar year. While downloads of sportsbook apps in the UK have stagnated, this year appears to be on pace to grow from 2020.
One advantage the UK has held over the US is eligibility on Android. Google Play allows for sports betting apps in the UK but did not in the US. However, Google recently changed its tune and opened up to the US and other countries, starting March 2021. We expect this to grow sportsbook app users exponentially in the US this year.
If you'd like to create your own analysis inclusive of the Google Play apps, you can do so here with a custom free report. If you're an investor, you should know that we've found our data to correlate with publicly reported revenue from many of these companies.