DraftKings Gains Edge Over FanDuel
DraftKings and FanDuel have dominated the US sports betting market, owning over 80% of the market share. That has led rivals to seek an edge constantly, and the Massachusetts-based sportsbook just scored a big one.
ESPN has dominated the US sports landscape for decades. They have TV deals with most major pro and college leagues, and are one of the most prominent players in the fantasy sports industry. The ESPN+ streaming app is also integrated with the Disney+ and Hulu apps, allowing ESPN to advertise in these prediction markets on those platforms.
That exposure will make a big difference for DraftKings in competing against FanDuel and the rest of the growing industry.
ESPN Airing AGA Ad Opposing Prediction Markets
While ESPN has entered the sports prediction market with DraftKings, it may not be as committed to the industry. ESPN videos and channels are airing a public-awareness advertisement from the American Gaming Association (AGA) that warns about the dangers of prediction markets.
DraftKings and FanDuel recently resigned from the lobby group after talks regarding prediction markets went south. While the two sides were publicly amicable, they are clearly lined up on opposite sides.
Here Comes Fanatics
DraftKings didn’t have much time to celebrate its deal with ESPN, as Fanatics stunned the industry by beating both sports betting giants with a prediction platform of its own. It is already live in 10 states, with another 14 likely coming soon.
Fanatics still trails the industry leaders in the sports betting world, but has been closing the gap far faster than any of its rivals. That includes New York, where Fanatics has seen its handle level with FanDuel and DraftKings.
While that will help Fanatics win over customers from their sportsbook rivals, it could also provide them with crucial information. By going first, Fanatics is entering the unknown. No other major sportsbook has accomplished the feat, and the fallout from state regulators and tribes remains a significant concern. How they react to Fanatics could help the two sportsbooks better prepare for their own launches.
