DraftKings tops bank sports betting survey, ESPN betting surprises
A recent Truist Securities survey of consumers' iGaming and online sports betting habits found that users prefer DraftKings (NASDAQ: DKNG ).
Flutter Entertainment's (NYSE: FLUT ) DraftKings and FanDuel have established an enviable duopoly in the U.S. sports betting market, controlling roughly 70% of the market. However, DraftKings has become a leading provider in the iGaming space. Truist's survey shows more people use DraftKings (29%) than FanDuel (22%), and of those who use both mobile apps, 61% prefer the former to the latter.
The reasons for this preference are often complex, leading us to believe today’s consumers generally view the two as roughly equivalent,” noted Truist analyst Barry Jonas.
DraftKings and FanDuel are both the best known and most valuable gaming brands, but Jonas noted that while the two companies could find ways to compete in the iGaming/sports betting market, the former will likely end up in a marketing war win in. Living together in the landscape.
Good news for ESPN betting
Even though Penn Entertainment (NASDAQ: PENN ) is still less than six months old on ESPN Bet, it's doing well in the Truist survey.
"(This) reinforces our belief in our potential for long-term success," Jonas added. “Consumer responses to health are in line with our expectations, as higher cost of living appears to have a moderate impact on betting frequency among ESPN Bet users”.
That could ease concerns about the app's ability to gain market share against established players like DraftKings and FanDuel. Some analysts believe ESPN Bet could gain market share in states where it enters a market alongside its competitors, rather than following competitors into markets after they have established themselves.
44% of people surveyed by Truist said ESPN Bet is their preferred destination for checking scores, and 64% said they would like the app to improve integration for betting purposes beyond what is currently available. Another 52% told the research firm that they expect ESPN Bet to be their preferred mobile betting app in the future.
It is crucial for operators to keep profits together
Unsurprisingly, agreement is vital to gambling operators as they are highly profitable and increase profits. The good news for bookmakers in the Truist survey is that 75% of respondents said they rely primarily on parlay betting.
However, 39% said they did so less often, while 20% used such bets more frequently. The remaining 41% neither decreased nor increased their use of parlays.
On the iGaming side, DraftKings (27%) was the top performer in the Truist survey, followed by FanDuel (18%) and BetMGM (14). An encouraging sign for Caesars Entertainment Inc. (NASDAQ: CZR ) is that both its iGaming and sports betting apps garnered 15% customer preference.
“This is positive for the implementation of his dual strategy. ...The majority of players (62%) said they prefer to play Icasino on the same platform on which they bet, highlighting the importance of cross-selling and customer loyalty ." Jonas concluded.
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Source: www.casino.org
