Will Any Sportsbook(s) Compete With DraftKings For Massachusetts Dominance?

Massachusetts is preparing to launch retail sports betting in January and mobile betting by March of 2023. Boston-based DraftKings has a chance to make a splash in its home state. FanDuel is the leader in market share nationally, claiming 42% of sports betters. Draft Kings is second with 24%.

Massachusetts is preparing to launch retail sports betting in January and mobile betting by March of 2023. Boston-based DraftKings has a chance to make a splash in its home state. FanDuel is the leader in market share with 42% of sportsbetting users in markets where it is active. Barstool is also local, but player acquisition often requires intense capital investment in the market.

Sports betting operators are trying to get new customers for the least amount of money. They use promotions, offers and advertisements to attract new players. Long-lasting customers help to pay for system improvements and the acquisition of additional new users. With a larger national presence, sportsbooks get a leg-up on acquisition through advertising. For example, potential customers in Massachusetts could see ads from Connecticut, New Hampshire, Rhode Island, or New York during their regular travel.

FanDuel is planning to be profitable next year. DraftKings has a smaller market share and is losing money. FanDuo has more capital to spend to attract new customers. Draft Kings plans to lose an additional $500 million next years. It has lost more than $3 billion in the past three years, but can be more flexible with its choices if there's intense competition.

FanDuel has a financial advantage over DraftKings in the new Massachusetts market. BetMGM is headquartered in New Jersey and Caesars is based in Nevada. Neither company has taken a lead in market share in its home state.

DraftKings has a better chance of striking deals with local sports teams and having better reception when ads are played at stadiums. It's up to the company's marketing department to put together partnerships with teams.