FanDuel Approaches $800 Million In Q3 Revenue As DraftKings Begins To Close The Gap

Flutter Entertainment, the parent company of FanDuel Sportsbook, reported its Q3 2023 numbers that include almost $800 million in revenue in the U.S. market. When comparing these numbers with betting markets outside of the U.S, FanDuel totaled $2.04 billion revenue for the quarter. While these numbers are nothing to scoff at, it’s interesting to note that DraftKings is beginning to inch closer to FanDuel’s totals after the platform finished first in September gross gaming revenue.

FanDuel Reaches Nearly $800 Million In Q3 U.S. Revenue

The Q3 revenue report for FanDuel shows around $799.5 million in unaudited revenue for the third quarter of 2023. This is an uptick from the $715.7 million that was reported for Q3 of 2022.

$1.6 billion in revenue was also generated from non-U.S. areas. The overall revenue from the quarter, including the U.S., Irish, U.K., Australian, and International markets, totaled $2.04 billion.

The U.S. market was strong for FanDuel throughout the period, as the platform reported 40% in gross sports revenue share. The kickoff of the NFL season was also a major driving force for Q3 success. According to the report, FanDuel had a record number of new U.S. users, with a 37% increase in signups in comparison to 2022.

States that had already launched legal sports betting markets before 2022 still saw new signups, with a 13% jump from last year. FanDuel Casino is also beginning to gain more of a fanbase, with 23% in iGaming market share.

FanDuel also saw a consistent userbase in the U.S. market, with 2.5 million Average Monthly Players (AMPs), a 38% increase from the previous year. Customer retention was a big focus for FanDuel with further developments of Same Game Parlay offerings and the introduction of the Parlay Hub.

Q3 Numbers Highlight DraftKings Rivalry

DraftKings also released its third quarter financial results this week, and the similarities between the two companies is fascinating. DraftKings reported $790 million in the quarter, just slightly below FanDuel’s $799.5 million. The platform also had 2.3 million Monthly Unique Players (MUPs) compared to FanDuel’s 2.5 million AMPs.

However, the biggest difference between the two companies can be seen with year-over-year differences. While Fanduel’s Q3 revenue grew 12% from 2022 to 2023, DraftKings had a 57% revenue increase from year to year. On a smaller scale, DraftKings had a 40% increase in MUPs from year to year compared to FanDuel’s 38% increase in AMPs.

The release of FanDuel’s Q3 2023 numbers comes just weeks after it was revealed that DraftKings had overtaken the sports betting operator in terms of gross gaming revenue in September. The report, which came from research firm Eilers & Krejcik, showed that DraftKings had grown to 32.5% in terms of U.S. market share compared to FanDuel’s 29.6%.

Keep in mind that these numbers are reflective of both sports betting and iGaming, meaning that DraftKings Casino and FanDuel Casino are also factored in. DraftKings and FanDuel have had a rivalry going back years, with the two originally battling it out for daily fantasy sports market share.

Sports betting market share between FanDuel and DraftKings, as well as other competitors such as Caesars and BetMGM should continue to be fascinating to watch for the rest of 2023 and beyond. The recent launch of Fanatics Sportsbook, as well as the upcoming relaunch of Barstool as ESPN Bet, should continue to make competition in sports betting more interesting.