FanDuel’s position as US market leader could be facing tougher competition than ever after its sportsbook revenue growth slowed to 11% in Q2. 

The company’s quarterly results boasted strong growth in total revenue, up 16% from last year, but its sportsbook performance paled in comparison to competitors such as BetMGM, Fanatics and Caesars. 

Speaking on the latest episode of the iGaming Daily podcast, SBC Americas Senior Journalist Tom Nightingale suggested the figures indicated that the market in the US is beginning to change. 

Nightingale said: “The idea of that historic duopoly in sports betting of FanDuel and DraftKings, that is still the case, but the gap is definitely narrowing.

“It’s hard to say they’re slipping but they’re certainly slowing and now they’re in a position where they are having to look over their shoulder, more than ever before.”

How FanDuel can stay ahead

FanDuel remains the industry leader for Flutter Entertainment in the US market and continues to grow significantly year-on-year but there are more opportunities that it is exploring for the future. 

Major integration products in Brazil, Serbia and Italy, potential for prediction markets and daily fantasy sports, all represent opportunities and it could help it keep ahead of the trailing pack which have all made positive moves in the past year. 

Nightingale said: “They’re going to have to continue to innovate on product because some of the stuff that their competitors are doing has really come a long way in the last 12 months.”

Flutter CEO Peter Jackson cited the decades of experience it has been working with the Betfair Exchange would allow it to come into the prediction market with a degree of confidence, but it remains an unknown regulatory quantity.

For now, FanDuel can reflect on a record quarter of EBITDA and a strong position as market leader, but slower growth in the sports betting market when compared to its rivals could place greater importance on innovating its  product to stay ahead.