FanDuel Sportsbook Expects To Build An $8.3 Billion Market In The US

• FanDuel Sportsbook has signed up over 100,000 users in New Jersey.
• The company has seen a near 50% market share for the 1st quarter of New Jersey mobile sports betting.
• Already in WV, FanDuel is prepping its Pennsylvania online sports betting launch.

EAST RUTHERFORD, N.J. – The FanDuel Sportsbook has been nothing short of spectacular since it entered into the New Jersey sports betting market in September of last year.

Parent company, Paddy Power Betfair, went on to explain how the power of FanDuel in the New Jersey market will only help continue operations and build expansion plans into the Pennsylvania and West Virginia markets.

In a trading update provided by the company, Peter Jackson, the Chief Executive, explored these expansion plans after seeing FanDuel hold a near 50% market share for the first quarter of 2019.

FanDuel operates through the Meadowlands Racetrack, as New Jersey requires online operators to pair with a gambling venue of the state. Aside from FanDuel, the Meadowlands also has a mobile betting license with PointsBet, though it is believed that FanDuel carries most of the weight.

With over $25.75 million in revenue accumulated through the first three months of 2019, these two online platforms have given Jackson the belief that their company will remain on top.

In a presentation at the investor day in March, Paddy Power Betfair was able to show that FanDuel had signed up more than 100,000 sports bettors, mainly from cross-sales on the daily fantasy app.

Jackson’s hope is that in a few years, over 4 million existing FanDuel customers will sign up with various FanDuel sportsbooks, accumulating a market size of over $8.3 billion. Of course, this will take time, as this requires access into 15 states that hold nearly 42% of the US population; however, projections show that the states will move forward with sports betting legalization sooner than later.

Cross-selling is the goal when it comes to signing up customers. In the same report, it was shown that 28% of all casino revenue in 2019 so far has come from customers who signed up at the sportsbook. Having a platform that permits access to all features of the Paddy Power Betfair brand makes bringing money in even easier.

“FanDuel remains well positioned to generate good returns on ongoing sports betting investment and for rest of the Group we remain on track to meet our full-year profit expectations,” said Jackson in the trading update.

The entire Paddy Power Betfair Group includes FanDuel Sportsbook, TVG, Betfair Casino, and the FanDuel daily fantasy app. The group plans to be renamed to Flutter Entertainment Plc, assuming approval from the shareholders, in a week at the annual general meeting.

News tags: FanDuel Sportsbook | New Jersey | Pennsylvania | sports betting