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FanDuel has 350,000 sports bettors and 42% of them have crossed over from its database of fantasy sports players. This was recently announced by the company as part of its financial highlights from 2019.
FanDuel also reported that revenues from online casino play tripled in the fourth quarter of last year. A spokesman stated that the company had “materially benefited from sports betting cross-sell”. It also helped that FanDuel invested $60 million in a marketing campaign in the United States. The firm’s growth was further underlined when it recently surpassed 1,000 employees.
FanDuel has a 44% share in the market for online sports wagering in the states where such industries exist. New Jersey in 2018 was the first to grant FanDuel a sports betting license, followed in 2019 by Pennsylvania, Indiana, and West Virginia. The company has come out and stated that it is in “the lead position” in those aforementioned jurisdictions, although recent figures from the Indiana Gaming Commission suggest DraftKings is the top sportsbook in the Hoosier State.
FanDuel is now so much more than a daily fantasy sports (DFS) operator. The firm is a subsidiary of Flutter Entertainment, which is listed on the London Stock Exchange and is part of the FTSE. Flutter also operates Betfair US and a major player in the horse racing industry in TVG.
FanDuel recently announced, “Cross-sell between these products materially lowered acquisition costs and increased customer retention.”
The FanDuel Sportsbook is twofold, consisting of land-based retail betting at the Meadowlands Racetrack and the popular mobile betting platform. Together, those entities had revenue growth in 2019 of 54% and the net revenue for last year came to the tune of $480 million.
Only 24% of the US population is in the 14 states where sports betting is legal. FanDuel has made an estimation that 23 additional states, which account for 44% of the nation’s people, “have active online sports betting or casino bills in progress”. FanDuel also stated that in 2020 it “expects to go live” in the states of Iowa, Colorado, and Tennessee.
Matt King, who is the FanDuel Group CEO, said the demand potential for DFS, sports wagering, online casino gaming, and horse racing “exceeds $10 billion per annum”. He went onto say, “We are proud of our second successful year since the launch of legal sports betting in the United States.”