If Prop 27 passes in California this November, expect DraftKings, FanDuel, and BetMGM to dominate the California online sports betting market. At least in the early stages.
That’s according to a report published by Eilers & Krejcik Gaming, an independent research and consulting firm, in mid-August. In their report, the experts at Eilers & Krejcik Gaming predicted that DraftKings California, FanDuel California, and BetMGM California would own at least 70% of the state’s online sports betting market share in its early stages, according to Business Insider. That is only, of course, if Prop 27 passes and California online sports betting is legalized.
DraftKings, FanDuel, and BetMGM have donated boatloads of money to the Prop 27 campaign in California. Specifically, DraftKings has contributed just north of $25 million, and FanDuel and BetMGM have each donated exactly $25 million. Two other sports betting companies — Fanatics (FanaticsBet) and PENN Gaming (Barstool Sportsbook) — have also donated $25 million. Bally Bet and WynnBET have each donated $12.5 million.
Most Popular Sportsbooks in the US
This potential sports betting outlook in California reflects a national trend. A July report from Eilers & Krejcik Gaming revealed that, from March 2022 through May 2022, FanDuel led all sportsbooks with 46.6% of the US sports betting market, according to iGamingNext.
DraftKings was second with 20.2 %, BetMGM had 14.1%, Caesars Sportsbook had 7.5%, and BetRivers rounded out the top five at 2.9%.
Among the other interesting items from the August Eilers & Krejcik Gaming report:
- Prop 27 would generate $2.8 billion in annual California sports betting revenue. That number would jump to $3.1 billion if Prop 26, which would allow in-person sports betting at California tribal casinos and horse racetracks, also passes.
- There is a “less than 50%” chance that Prop 26 or Prop 27 passes in California this November, due in large part to potential voter confusion between the two measures.
- Companies may merge in order to gain access to the California sports betting market. The report mentioned Fanatics, ESPN, Bet365, and FTX as potential merger or acquisition candidates.