Amy Howe, CEO of FanDuel, underlined her confidence that the company, recognized as the largest online sportsbook operator in the U.S., will turn a profit this year despite the increasingly fierce competition in the market.
FanDuel, a division of Flutter Entertainment, has already posted profits for the initial portion of this year. Howe suggested that by the close of 2023, FanDuel is poised to achieve profitability according to EBITDA calculations. This would mark the sportsbook giant as the first online betting operator to achieve this notable milestone in the U.S.
During the recent CNBC Global Evolve virtual summit, Howe highlighted FanDuel’s readiness to compete with the entry of new players such as Fanatics and ESPN Bet by Penn Entertainment into the sports betting scene.
She emphasized the unarguable significance of the quality of the user experience, stating that even the most recognizable brands would misfire if the product were unable to deliver a superior experience. Combined, FanDuel and DraftKings currently command over 70% of the online sports betting market in the U.S.
Addressing the early stages of the U.S sports betting industry, Howe highlighted the critical importance of scale, drawing parallels with e-commerce undertakings. Scale has the potential to streamline operations, a strategy that has propelled FanDuel and DraftKings to the forefront of the industry.
FanDuel currently operates online or retail sportsbooks in 21 out the 36 states and Washington, DC, that currently permit regulated sports betting. The resilience and loyalty of the customer bases of FanDuel and DraftKings underscore the companies’ standing as market leaders.
Despite the relative newness of sports betting in the U.S, barriers to entry remain high. This is compounded by the significant lead that market leaders FanDuel and DraftKings have established. Howe stressed the complexity surrounding licensing, navigating regulatory environments, investing heavily in superior products and technology platforms and maintaining an ethical approach to consumer engagement.
Looking back at the evolution of the domestic sports betting industry over the past five plus years reveals that numerous operators have either exited the industry or sold their assets. Other participants have reevaluated the viability of their operations, opting against further financial investment in pursuit of incremental market share.
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