Recent Sportsbook Closures Threaten A Possible US Duopoly

• DraftKings and FanDuel sportsbook hold nearly 75% of the market share for US sports betting.
• While MGM and Caesars make up another ~15%, the remaining 10% is split between way too many operators.

PHOENIX – Recent withdrawals from the legal sports betting market from SaharaBets and Betway highlight the increasing concern about consolidation within the sector.

SaharaBets, an Arizona sportsbook affiliated what used to be the NHL’s Coyotes, and Betway, an internationally recognized brand, have both decided to retreat from the US market in recent days.

• More On SaharaBets closing down
• More On Betway Sportsbook closing operations.

These exits follow a broader trend of market contraction that has already seen major players like Barstool, Fox Bet, and PointsBet fall by the wayside. Despite their international reach and substantial investments, these brands struggled to gain a foothold in a fiercely competitive market dominated by FanDuel and DraftKings.

FanDuel and DraftKings continue to dominate, leaving little room for smaller or newer entrants. Their sports betting revenue and significant market share – 38% for DraftKings in Q2 2024, 36% for FanDuel in Q2 2024 – bolstered by aggressive marketing and advanced technology, has set a high bar that many competitors are struggling to meet.

Heading Toward A Duopoly?

Recent analysis indicates that the consolidation trend is likely to lead to a duopoly, with FanDuel and DraftKings at the forefront. Other major casino brands like MGM and Caesars are working hard to improve their positions.

Caesars, for instance, recently acquired ZeroFlucs, an Australian data science company, to enhance its sports betting app and information. This move underscores Caesars’ strategic pivot towards leveraging advanced technology to remain competitive.

As the market consolidates, concerns about an oligopoly — where a few large firms dominate — are growing. The dominance of FanDuel and DraftKings, combined with the exit of numerous smaller operators, suggests that the legal US sports betting market may be heading towards a more concentrated structure.

This could potentially limit consumer choices and impact betting odds and sportsbook promotions available to users.

The future of the sports betting industry will depend on how well existing giants adapt and whether any new entrants can break through the dominant duopoly. As consolidation continues, regulators and industry stakeholders must focus on monitoring the market closely to ensure it remains competitive and consumer-friendly.

News tags: Arizona Coyotes | Barstool | Betway | Caesars | DraftKings | FanDuel | FOX Bet | MGM | PointsBet | SaharaBets | ZeroFlucs