Paddy Power Betfair Report Shows How FanDuel Sportsbook Is Winning In NJ
The strength of FanDuel Sportsbook in the NJ sports betting market is underscored in a Q1 trading update issued by parent company Paddy Power Betfair (PPB).
Results for the first three months of 2019 showed total sports wagering stakes amounted to $598 million, which generated $33 million of gross revenue. This was more than double the revenue the sports betting brand achieved in Q4 2018.
PPB also hailed the fact FanDuel Sportsbook, which operates via the Meadowlands Racetrack license in New Jersey, was the leading operator in Q1 after grabbing a 50% share of the NJ market based on revenue.
FanDuel distances from sports betting rivals
According to revenue numbers released by NJ’s Division of Gaming Enforcement, FanDuel Sportsbook is lapping the competition in the Garden State in online betting after early dominance by DraftKings Sportsbook.
While FanDuel Sportsbook shares the Meadowlands license with rising star PointsBet, FanDuel is thought to be responsible for the lion’s share of online revenue.
The pair generated a combined total of more than $13.3 million of revenue in March, which equates to 54% of the overall digital revenue accrued across the market by more than a dozen operators.
The nearest online rival in March was Resorts Digital and the betting brands operating on its license – DraftKings Sportsbook and BetStars NJ – with nearly $7.3 million in revenue.
Leveraging the FanDuel brand and database
In addition to a well-received mobile product, much of FanDuel Sportsbook’s market-leading position can be attributed to its strong daily fantasy sports brand and large customer database.
Indeed, PPB revealed in March that FanDuel Sportsbook had amassed more than 100,000 online customers, with almost half acquired through cross-selling of players from the DFS product.
One major upside of this is that cost per acquisition of DFS players is significantly lower than the expense incurred when a sportsbook casts its marketing net to snare sports bettors.
A well-oiled gambling machine
In addition, FanDuel Sportsbook benefits from the expertise, product development and financial firepower provided by London-listed PPB, not to mention the other brands within the group.
PPB acquired a majority stake in FanDuel in May 2018 and, two months later, formed the FanDuel Group through the merger of PPB’s US assets, including Betfair Casino and TVG.
PPB currently owns 58 percent of FanDuel Group, which amassed more than 8.5 million customers and achieved $313 million in net revenue last year. Group revenue soared by 47% year-on-year in the first quarter of 2019 to £78 million ($102 million).
Online revenue for the whole of the global PPB group increased by 4% year-on-year to £228m ($298 million). Despite gaming revenue rising 31%, sports betting declined by 6%.
PPB bosses encouraged by progress so far
Although it’s still early days for regulated US sports betting, PPB CEO Peter Jackson said in the trading update that FanDuel “remains well positioned to generate good returns on ongoing sports betting investment.”
Referring to the performance of the wider US business, he said:
“In the US, FanDuel Group is making huge progress, with our unique proposition of brand, product offering, existing fantasy customer base, US market experience and global sports betting expertise driving a Q1 New Jersey sports betting market share of 50%.”
It's not just sports betting performing well; FanDuel Sportsbook’s growth combined with active cross-selling of players also gave Betfair Casino a lift in NJ during Q1, PPB announced.
Gaming revenue shot up by 83% year-on-year to £9 million ($11.7m), while the online casino increased its market share from 11 percent to 14 percent in what is a particularly crowded and competitive arena.
FanDuel gears up for online PA sports betting
Elsewhere, Jackson singled out Pennsylvania and referenced the opening of the FanDuel PA Sportsbook at Boyd Gaming’s Valley Forge Casino Resort near Philadelphia in March.
This facility joins the company’s sportsbook at the private The Greenbrier resort in West Virginia and the aforementioned 10,000 square-foot sportsbook at Meadowlands Racetrack in NJ.
Pennsylvania currently still only offers retail sports betting, although PA online sports betting will launch within two weeks. FanDuel Sportsbook is sure to be right in the mix when the market goes live.
And if the manner by which this brand has grabbed the NJ online market by the scruff of the neck is anything to go by, rival operators in the Keystone State seem set to have a tough fight on their hands later this year.
The post Paddy Power Betfair Report Shows How FanDuel Sportsbook Is Winning In NJ appeared first on Legal Sports Report.
Andy has been writing and posting about offshore sportsbooks for over 15 years. He's also an active sportsbook bonus seeker and seasoned online gambler on US sports.
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