It seems that other states with online casinos are reaching similar conclusions as West Virginia. DraftKings, the number-one online casino in West Virginia, announced $770 million in revenue during their Q1 2023 earnings call on Thursday, representing an 84% year-over-year increase from $417 million in Q1 2022.
Regarding the news, DraftKings CEO Jason Robins stated that the company has become the leading iGaming operator, capturing an estimated 26% market share of gross gaming revenue (GGR). Robins said, “In the iGaming segment, we have been chasing down BetMGM. And for the first time, in Q1, we are able to surpass them as the number one operator in iGaming, which we are very proud of.”
DraftKings CFO Jason Park added that the company performed better than Q1 expectations and is raising the midpoint of its FY ‘3 revenue guidance from $2.95 billion to $3.185 billion. The FY adjusted EBITDA guidance midpoint also improved from -$400 million to -$315 million, and the company expects to achieve breakeven adjusted EBITDA by the end of Q1 2023.
DraftKings Casino outpacing nationwide expansion
DraftKing’s growth comes alongside industry growth in iGaming and online betting nationwide.
New markets continue to emerge, and new competitors are entering existing markets. However, consolidation is happening naturally rather than through mergers and acquisitions.
The most recent data comes from Massachusetts, which legalized online betting on March 10 and saw DraftKings ($257.6 million) and FanDuel ($181.1 million) capture 80% of the total handle ($568.1 million) in the first few weeks.
Park said the industry has a lot of momentum, which has contributed to successful launches in recent states like Massachusetts, Ohio, and Maryland. National advertising played a role in acquiring early sign-ups in the past year, especially during football season, compared to 2020 and 2021.
While FanDuel remains the number-one sportsbook in the US, DraftKings leveraged its hometown advantage in Massachusetts as a Boston-based company.
DraftKings Casino previously on top throughout West California
West Virginia is one of just six states with legal online casinos and online sports betting. BetMGM and FanDuel are the respective leaders in iGaming and sports betting in most markets, but not in West Virginia.
Although the West Virginia Lottery does not disclose individual revenue numbers for each operator, it still provides segmented data for the state’s land-based casinos.
West Virginia’s 2023 iGaming revenue:
| Land-Based Traditional casino | CY 2023 Wagers | CY 2023 Earnings | FY 2023 Wagers | FY 2023 Earnings |
| Hollywood Traditional casino | $586. additional million | $19. 1 zillion | $1. 5 billion | $42. 5 zillion |
| The Greenbrier | $631. a couple of million | $22. 8 zillion | $1. some billion | $54. 6million |
For wagering, Hollywood Casino includes DraftKings, PointsBet, and Barstool.
| Land-Based Casino | CY 2023 Bets | CY 2023 Revenue | FY 2023 Bets | FY 2023 Revenue |
| Showmanship Casino | $72 million | $4. 6 , 000, 000 | $181. a few million | $15. 6 , 000, 000 |
| The Greenbrier | $73. several million | $9. 1 , 000, 000 | $187. 2 million | $23 million |
DraftKings online casino WV is the only iGaming operator under Hollywood Casino. Meanwhile, The Greenbrier’s license accounts for FanDuel and BetMGM.
Hollywood falls just short of the combined numbers of FanDuel and BetMGM in both verticals. Given the prominence of each, this suggests that DraftKings is outperforming its top two competitors in terms of iGaming and betting handle in the West Virginia market.
Since January 1, DraftKings has also increased its market share of iGaming revenue. However, a lower sportsbook hold percentage has affected the GGR in relation to The Greenbrier’s operators.
Keep an eye out, FanDuel?
Robins talked about surpassing BetMGM in iGaming and aiming to do the same with FanDuel in online sports betting.
“First, we don’t take anything for granted. And we believe that there’s always going to be a very competitive market and that we don’t assume we’ve won anything or that we have something that we can bank on yet. And I think that keeps a lot of the edge and the competitive drive with the company. Certainly having a strong competitor in FanDuel is also helpful,” he said.
He continued to say that FanDuel provided DraftKings with a target to chase down, similar to BetMGM in iGaming.
Looking forward, Robins said the company has begun to refine its playbook, customizing it through launches in more than 20 states. DraftKings has also expanded its live betting and same-game parlay offerings, adding even more to its bottom line and helping to cement itself as a leader in emerging markets.
However, being the leader and the frontrunner are two different things.
As DraftKings innovates and evolves, FanDuel and others will do the same. And BetMGM will strive to improve its position in iGaming.
“We always have to be serving the customer and innovating and creating new products and experiences,” said Robins. “And over time, we believe that’s the key to driving loyalty… just best product, best customer experience.”
Over the next year or two, FanDuel’s lead will be challenging to surmount. That could be different in five or 10 years, though.
Even if DraftKings fails to achieve or maintain the top position, it remains the favorite to hold second place in both verticals. Many companies would love to make that claim.
Hill Kirby comes from a background related to poker, sports activities, and thinking. He uses all of this experience in his articles where he adds content to the growing legalized sports betting, online casino, and betting industry.
