Gaming_ What the latest state data tells us about US gaming

Summary of US Gaming Industry Conference Call Industry Overview - The report focuses on the US online sports betting (OSB) and iGaming sectors, analyzing data from 29 states to provide insights into market dynamics, growth trends, and competitive landscape [2][21][22]. Key Insights - Market Growth: November 2024 saw a year-over-year (YoY) growth of +78% in same-state OSB GGR, rebounding from a -14% decline in October. Including new state launches, the growth was +89% YoY [3][12]. - iGaming Performance: iGaming same-state GGR growth was +30% YoY, outperforming the 2024 year-to-date average of +27% YoY [7][12]. - Market Share Dynamics: - Flutter's market share increased by approximately +2 percentage points (pp) YoY, while DraftKings remained stable YoY. DraftKings gained +4pp month-over-month (MoM) in November, while FanDuel's market share contracted by -3pp MoM [3][10][54]. - Flutter and DraftKings together hold about 77% of the OSB GGR market share year-to-date (YTD) [10]. Competitive Landscape - Flutter: Despite unfavorable sports results impacting EBITDA expectations by $205 million for FY24, Flutter's underlying trends remain strong. The company has improved customer acquisition and product offerings, maintaining a stable market share of 28% in iGaming [9][12]. - **DraftKings**: The company has shown resilience with stable market share and strong customer acquisition metrics. DraftKings' NGR market share was reported at 34% in November [10][12]. - **BetMGM**: After experiencing share losses, BetMGM has begun to stabilize its market share, with a +1pp increase in OSB GGR market share in November. However, it still lags behind Flutter and DraftKings in customer perception metrics [12][13]. Promotional Intensity and Customer Perception - The report highlights the impact of promotional intensity on market dynamics, noting that higher promotional activities can inflate market share figures for smaller operators [12][13]. - Customer feedback indicates that FanDuel and DraftKings maintain a strong lead in Net Promoter Score (NPS) and Net Purchase Intent (NPI) metrics, while BetMGM's scores have softened in the fourth quarter [12][13]. Future Outlook - The US gaming market is projected to grow significantly, with GGR expected to reach over$ 16 billion in 2023 and forecasted to approach $40 billion by 2028 [21]. - The competitive landscape remains concentrated, with Flutter and DraftKings dominating the market. New entrants like ESPN Bet and Fanatics are beginning to gain traction, but they still hold less than 5% of the GGR market share [12][13]. Conclusion - The US gaming industry is experiencing robust growth, driven by favorable market conditions and competitive dynamics. Flutter and DraftKings continue to lead the market, while BetMGM is working to regain its footing. The focus on customer acquisition and product innovation will be crucial for sustaining growth in this rapidly evolving sector [2][21][22].