Sports Betting Leader Affirmed by Jefferies Once More
In the bustling world of online sports betting, the top players continue to dominate the market, with FanDuel and DraftKings maintaining their leading positions. According to the latest data, the top 10 online wagering brands in March were FanDuel, DraftKings, BetMGM, bet365, Penn Entertainment's ESPN Bet, Rush Street Interactive's BetRivers, Bally's, Hard Rock Casino, Fanatics Sportsbook, and Caesars Sportsbook & Casino.
While smaller competitors like Caesars Sports and Rush Street Interactive are demonstrating the potential to make inroads and drive growth and profitability in the market, the giants remain unshaken. Jefferies analyst, David Katz, notes that there is a positive monthly momentum for Caesars Entertainment, given its aim to establish earnings power in 2025 from its digital business.
Rush Street Interactive, with a market share of approximately 9%, is a significant player in the North American online sports betting and iGaming market. The company reported strong growth in the first quarter of 2025, with a 21% year-over-year revenue increase, driven by a 25% rise in online casino operations and an 11% boost in sports betting. RSI's trailing twelve months revenue stands at around $969 million, with a modest net income of $8.43 million and an EPS of $0.10.
However, compared to FanDuel and DraftKings, RSI's growth is solid but somewhat slower. JPMorgan highlighted that RSI trades at a premium valuation relative to DraftKings and Flutter but has comparatively slower revenue and EBITDA growth expectations. The broader online sports betting market, led by FanDuel and DraftKings, continues to grow robustly, supported by strong hold rates and increasing handle volumes; overall online sports betting revenue is forecasted to reach $18.9 billion in 2025, up 25% from 2024.
FanDuel, a unit of Flutter Entertainment, maintained the top spot among sports betting brands in March. Some estimates suggest that FanDuel and DraftKings control around 80% of the US online sports betting market. While Rush Street Interactive is making progress, it remains behind FanDuel and DraftKings in market dominance and growth velocity.
Caesars Entertainment's Caesars Sports is also among the smaller operators gaining momentum in brand awareness. Hard Rock Digital, a tribal-owned internet gaming business, is estimated to be worth $8 billion, primarily due to its sports betting monopoly in Florida and expectations for iGaming legalization in its home state.
Cracking the FanDuel/DraftKings duopoly is a difficult task, but some smaller operators are making progress. RSI's BetRivers operates in fewer states compared to FanDuel and DraftKings, but is available in North America in Colorado, Delaware, Illinois, Indiana, Iowa, Michigan, New Jersey, New York, Pennsylvania, Virginia, West Virginia, and Ontario, Canada. The analysis conducted by Jefferies also reveals clear correlations between market share and performance at the two operators, FanDuel and DraftKings.
In summary, while Rush Street Interactive is a significant player in the online sports betting market with steady growth and expanding revenue, it remains behind FanDuel and DraftKings in market dominance and growth velocity in the US online sports betting industry.
- Rush Street Interactive (RSI), with a market share of approximately 9%, is a notable player in the North American online sports betting and iGaming market.
- According to JPMorgan, RSI trades at a premium valuation compared to DraftKings and Flutter, but has relatively slower revenue and EBITDA growth expectations.
- While Caesars Sports is among the smaller operators making progress in brand awareness, FanDuel, a unit of Flutter Entertainment, and DraftKings control around 80% of the US online sports betting market.
- Hard Rock Digital, a tribal-owned internet gaming business, is estimated to be worth $8 billion, primarily due to its sports betting monopoly in Florida and expectations for iGaming legalization in its home state.
