FanDuel knew that the legalization of sports betting across the United States would mean a considerable increase in wagers, but they never imagined that it would be an avalanche of players looking for action. For example, in New Jersey, the largest sports betting market in the US, FanDuel has generated a revenue of $2.4 million in its digital operation in October and has achieved a growth in the number of bets received, handling 2.5 times more bets than in September. The demand has focused on football bets and FanDuel attributes the growth to the excellent promotions and odds offered to the customers of their sportsbook. As far as its retail operation is concerned, it also reports good figures with $1.1 million in revenue for the month of October.
The appreciation that FanDuel has for New Jersey is not limited to serving the market with excellent betting options, since they recently signed a partnership agreement with the New Jersey Devils, this as part of the expansion strategy that FanDuel is executing in hockey. They also signed an agreement to be the official sports betting and daily fantasy sports partner of the NHL. This sports league has been very enthusiastic about the alliance, since they see FanDuel as a key partner to innovate and offer hockey fans new experiences, technologies and platforms so they can better enjoy the sport.
As part of its expansion into new markets, FanDuel has also partnered with Valley Forge Casino, who recently filed the paperwork to obtain a sports betting license with the Pennsylvania Gaming Control Board (PGCB). It is estimated that by 2019 FanDuel and Valley Forge can offer sports betting in Pennsylvania, since in addition to the time it takes the PGCB to process the paperwork, they also require the casinos to open a retail sportsbook before being able to offer apps and other types of mobile betting solutions, so FanDuel will have to adapt to these regulations. It is highly probable that FanDuel will offer a similar service to the retail sportsbook they operate in New Jersey in partnership with The Meadowlands Racetrack.
FanDuel has around a 30 percent share of the sports betting market and is fighting for the leadership of the market with two other companies. If they continue to grow at the current rate, they will become the market leaders and one of the most powerful brands in the sports betting industry.