Four closed (and closed) bookmakers had a combined market percentage of less than a share of the percentage in Virginia.
The loss of several online sports operators in Virginia and other states might not constitute much of a gain for those still holding out.
Figures submitted to the Virginia Lottery Board on Wednesday showed that FanDuel and DraftKings are the largest operators in the Commonwealth, with market shares of 39. 9% and 27. 4%, respectively, during the first part of 2024.
BetMGM ranks a remote third, with a market share of 10. 7% from January to June, according to the board’s filing. No other operator had a double-digit market share in the state, with fourth-place sportsbook Caesars accounting for 5. 8%, followed by bet365 at 5. 2%.
Virginia also lost several operators. But figures presented to the lottery committee on Wednesday suggest that their exits probably wouldn’t generate much business to win, as they all had small market shares.
888 (SI Sportsbook), Betway, and SuperBook have announced plans to close their online sportsbooks in the Commonwealth (among other jurisdictions), and the lottery is working with operators on its exits, or contemplating doing so. DO. Meanwhile, Unibet has already let its license expire and shut down its operations in Virginia in April.
888 had only a market share of 0. 06% in the first part of 2024, according to the lottery committee’s filing, while Betway controlled 0. 26% and SuperBook 0. 11%. Unibet’s market share over 3 months of activity was 0. 04%.
In other words, the four closed and closed sportsbooks had a combined market percentage of less than a share of a percentage in Virginia. Even if a single operator monopolized all of those activities, this would have little effect on the existing hierarchy of the state.
888 (now Evoke) recently sold its consumer-facing assets in the U. S. The U. S. site has signed Hard Rock Digital, while SI Sportsbook’s site in Virginia is now urging visitors to turn to Hard Rock Bet. Nonetheless, the Virginia figures also recommend that the departure of operators such as Betway, SI, and SuperBook from other states may have little effect on the festival in those jurisdictions.
A note from Citizens JMP Securities to clients last month said the seven largest corporations in the US online gambling industry account for about 98% of sports betting revenue and 90% of from iGaming. According to JMP analyst Jordan Bender, this leaves “the remaining 36 active operators competing for a small group of players. “
Bender added that exits are outpacing new entrants, but that Fanatics has managed to regain a market share of around 3-4% without a “first-mover advantage,” albeit with the acquisition of PointsBet’s U. S. assets and promotional spending.
In Virginia, however, Fanatics accounted for just 1. 65% of the market in the first part of this year, according to the lottery committee’s filing.
“We expect exits to slow, especially in the coming years, with increased capital loading, increased customer protection/regulation, and consolidation of market share among the largest players,” Bender wrote.
Further restructuring in the market is not due to exits, but to the plan of one of the two largest operators to impose a surcharge on winning bettors in states with higher tax rates.
DraftKings last week announced its idea to implement a “play surcharge” on winning bets starting next year, helping it regain the top spot of doing business in Illinois, New York, Pennsylvania and Vermont.
While the Boston-based sportsbook is confident that the quality of its product will keep its consumers coming back, the add-on plan opens the door for other operators looking to attract DraftKings users by following suit.
BetRivers operator Rush Street Interactive Inc. announced Monday that it plans to impose a visitor surcharge, “reaffirming its commitment to offering an exceptional price to its players. “
A note from Jefferies to clients on Tuesday revealed a bearish-bullish split among investors over the concept of DraftKings, with the negative camp involved in the company giving in to FanDuel.
Flutter Entertainment PLC, the parent company of FanDuel, is expected to release and discuss its latest financial effects next week.
“FanDuel can simply oppose the market [the DraftKings surcharge] and earn more percentage with new customers, whether it leads to more EBITDA, which would be negative for DKNG’s percentages,” Jefferies analyst David Katz recently wrote.