Judging DraftKings’ Chances To Stay No. 1 Over FanDuel In Massachusetts

In the initial month of online sports betting, Massachusetts bettors widely favored DraftKings as their go-to sportsbook.

It wasn’t exactly surprising, but it would definitely be unexpected for DraftKings to maintain their position as the leader in the Massachusetts market in the future.

The Massachusetts Gaming Commission recently disclosed the online sports betting handle and revenue figures for the initial month of online sports betting in Massachusetts. DraftKings emerged as the leader in handle, capturing 47% of the market share with a staggering $257.6 million.

The Boston-based company considered the news to be significant, as it allocated additional resources to ensure its dominance in the local market. However, whether this achievement can be maintained in the long run remains uncertain.

What led DraftKings to the top in Massachusetts

DraftKings proudly originates from Massachusetts, with deep-rooted connections to the state. The company was established within the Bay State and presently calls Boston its home, where its headquarters are located.

DraftKings’ intention to leverage its home-field advantage is evident. Within a brief period, DraftKings has allocated a significant amount of resources to its Massachusetts launch, surpassing its efforts in other states.

That effort included a significant role played by commercials. One notable commercial, titled “Bet Local,” featuring Boston icons Lenny Clarke, David Ortiz, Zdeno Chara, and Brian Scalabrine, was sponsored by DraftKings and started airing in Massachusetts on March 10. The commercial has received positive feedback thus far.

In Massachusetts, DraftKings has saturated the airwaves and social media platforms with numerous ads. During the Celtics vs. Rockets broadcast on March 13, there were a total of nine sportsbook ads, with DraftKings being responsible for four of them.

Furthermore, the DraftKings welcome bonus plays a significant role in the platform’s successful debut in the Commonwealth. This gesture also exemplifies the company’s commitment to Massachusetts triumph, setting it apart from FanDuel.

On March 10, when DraftKings MA was introduced, new customers were given the opportunity to receive up to $1,250 in bonus bets as a welcome promotion. However, the current bonus amount has now decreased to $1,200, which is still quite attractive. In comparison, FanDuel had initially offered a bet of $5 for $250 in bonus bets, but this offer has now diminished to $150.

What DraftKings can do to stay at No. 1

While a larger welcome bonus may attract more customers, it is not the sole factor for maintaining a dominant position in a state’s market.

When comparing March revenue to handle, it is evident that DraftKings had a 47% share of the Massachusetts market in terms of handle. However, their market share in revenue was relatively lower at 34.5%. On the other hand, FanDuel emerged as the top player in terms of revenue, capturing 35.9% of the market.

This indicates that DraftKings did indeed receive a higher amount in sports wagers during March. However, they also incurred greater losses through promotional credits. In a mature market where the number of new bettors utilizing welcome offers significantly declines, the importance of promo credits for market share diminishes significantly.

Make sure to pay attention to how DraftKings handles its welcome bonus in MA going forward. Will it scale back to increase profits, or will it persist in offering abundant bonuses and odds boosts to maintain the momentum of DraftKings’ success for as long as it can?

Massachusetts Sportsbook Bonuses for April 2023 are available.

More ads?

DraftKings’ success in Massachusetts is heavily reliant on their continuous effort to saturate online feeds and airwaves, surpassing mere promos.

New advertisements featuring popular athletes from Boston’s rich sports history could potentially bring more success to DraftKings, considering the positive reception of their Massachusetts-themed commercials. It would not be unexpected for the company to introduce fresh ads into their marketing mix.

Furthermore, under the newly established NBA collective bargaining agreement, there is provision for existing NBA players to secure sponsorships from sports gambling enterprises. This presents an opportunity for various members of the Boston Celtics, such as Jayson Tatum and Jaylen Brown, to potentially serve as brand ambassadors for DraftKings, a renowned sportsbook.

The current DFS partner of the Celtics is DraftKings.

DraftKings trying to fend off FanDuel

There is no denying that FanDuel is the predominant force in sports betting within the United States. Among the 19 states where it conducts business, the company commands the largest market share in 15 of them. As of Q4 2022, FanDuel holds a remarkable 50% share of the entire US market.

DraftKings had a significant achievement in Massachusetts, being the leading company for the initial 21 days, as stated in the MGC’s report which covers the period from March 10-31.

However, FanDuel has the potential to surpass DraftKings as the top platform, particularly as the significance of welcome bonuses diminishes over time.

The extent to which DraftKings’ March triumph will be repeated in April, the inaugural month of online sports betting, will provide valuable insights. The MGC is expected to unveil this data on May 15.