![[object Object] Logo](https://sportshub.cbsistatic.com/i/2020/04/22/e9ceb731-8b3f-4c60-98fe-090ab66a2997/screen-shot-2020-04-22-at-11-04-56-am.png)
When it comes to sports betting in the United States, FanDuel and DraftKings are the two sportsbooks that immediately stand out. Although there are plenty of other outfits to emerge over the last decade, FanDuel and DraftKings are the clear market leaders in this space. Let's take a closer look at the two of the best sportsbook apps.
DFS operations
FanDuel was founded in 2009 by Nigel Eccles, Lesley Eccles, Tom Griffiths, Rob Jones and Chris Stafford in Scotland. The company eventually made New York City its headquarters. It originally started as a daily fantasy sports operation. DraftKings launched in Boston in 2012 as a DFS operator as well, competing with FanDuel. The companies actually attempted to merge in 2016 and would have served nearly five million users as a combined entity, but the merger fell through due to the threat of litigation from the Federal Trade Commission. The FTC believed the combined company would end up serving 90% or more of the DFS market, which would have given the entity monopoly status.
These companies continue to have robust DFS offerings for users. This is the primary differentiator for FanDuel and DraftKings in comparison to other sportsbooks. There are companies like betr, Underdog and PrizePicks that have DFS operations, but they are not as strong as the offerings from FanDuel or DraftKings. These companies also do not have the sportsbook arm of FanDuel or DraftKings.
Sportsbook operations
In 2018, the Supreme Court declared the Professional and Amateur Sports Protection Act of 1992 unconstitutional. Also known as PASPA or the Bradley Act, this legislation outlawed sports betting nationwide outside of the Montana, Oregon and Delaware lotteries, as well as most betting in Nevada. The Supreme Court made its decision in May 2018.
Paddy Power Betfair, an Irish-based sportsbook, acquired FanDuel. Paddy Power Betfair has since changed its name to Flutter Entertainment and owns a little over 77% of FanDuel Group. FanDuel opened its first branded sportsbook in New Jersey in July 2018. It opened a second sportsbook in Pennsylvania in March 2019. Bettors can access the sportsbook in 26 states plus Puerto Rico in various capacities. Some states offer online or retail betting only, while others have both available.
DraftKings launched its first online sportsbook in New Jersey in August 2018. It had operations in West Virginia, Indiana, Pennsylvania and New Hampshire by the end of 2019. In 2020, DraftKings became a publicly traded company on the NASDAQ index. Bettors can access DraftKings in 24 states plus Washington, D.C. DraftKings does not have operations in Nevada, while FanDuel does have a retail location in the state.
Key statistics
While it's hard to know for sure how many users are active on each platform, FanDuel claims more than 12 million registered users. DraftKings reported 4.8 million average monthly unique paying customers in the fourth quarter of 2024. The DraftKings app was reportedly downloaded 9.9 million times in 2024, while FanDuel reportedly had 10.8 million downloads in 2024.
A whopping $50.8 billion was wagered on FanDuel in 2024, with the company reporting a revenue of $5.79 billion. Flutter Entertainment did report a $162 million profit in 2024, which is a huge jump from a reported $1.2 billion loss in 2023. Most of that $162 million came in the fourth quarter of 2024. DraftKings had a revenue of $4.76 billion per Business of Apps, but reported a $507 million loss. While that's a substantial number, it still represents the best performance for the company since 2019.
FanDuel reportedly has a 43% market share in the United States while DraftKings holds a 25% market share. FanDuel and DraftKings are the most prevalent sportsbooks in the country, yet outfits like BetMGM, Caesars, ESPN BET and Fanatics aren't far behind when it comes to availability. These brands all have a big edge on more niche outfits like BetRivers, bet365 and Hard Rock.
Uniqueness
As mentioned above, the key differentiating factor for both FanDuel and DraftKings is the presence of DFS offerings in addition to traditional sports betting. Some sportsbooks offer traditional betting and some new platforms have DFS offerings, but only FanDuel and DraftKings possess the combination to appeal to a wider user base. While most sports betting outfits now have content arms, FanDuel and DraftKings have arguably the top ones with FanDuel TV and DraftKings Network.
Differences between FanDuel and DraftKings
It's hard to find major differences between FanDuel and DraftKings, outside of availability in some locations. DraftKings tends to offer more markets on niche sports and speciality bets, such as a player's next team. Odds don't vary much at either sportsbook. Promotions tend to be similar too, although FanDuel tends to lean more toward bonus bets while DraftKings offers more profit boosts. FanDuel seems to have a better user experience when cashing out of a bet or withdrawing money from the account. FanDuel also offers live streaming within the sportsbook app across a wider range of sports than DraftKings.
