FanDuel Dominates US Sports Betting Market, Faces Little Threat from New Entrants Like Fanatics and ESPN
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FanDuel has achieved dominant 47% market share in US sports betting by leveraging experience and retaining loyal customer base.
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New entrants like Fanatics face challenges in gaining share due to customer habits and loyalty factors. At best, Fanatics may get 2.5-3% share.
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ESPN entered sports betting very late, 4 years after legalization. We see single-digit market share for BetESPN at best.
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Flutter plans a FanDuel IPO soon, likely catalyzed by new entries, which will reinforce FanDuel's leadership.
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We rate Flutter a STRONG BUY due to FanDuel's market dominance and growth prospects, especially with upcoming FanDuel IPO.