Posted: December 4, 2024, 04:55.
Last updated: December 8, 2024, 10:21am.
DraftKings and FanDuel are giants in the U.S. online sports betting market, with a duopoly that controls more than 70% of total wagers, but some rivals are making inroads into key segments.
Sportsbook bettor. Young bettors are driving growth in the sports betting industry, according to a new report from Morgan Stanley. (Image: Getty)
In Morgan Stanley’s recently released triennial sports betting survey, the investment bank noted that Penn Entertainment’s ESPN Bet is popular among bettors in the 21- to 34-year-old age group. Morgan Stanley surveyed 3,000 sports bettors across a range of ages and other demographic factors and found that ESPN Bet had the highest percentage of users in the 21-34 age group at 44%. It turns out that it narrowly beats bet365’s 43%.
At the other end of the age spectrum, BetMGM and Caesars Sportsbook are popular with baby boomers, and Morgan Stanley noted that this is a result of these operators combining online sports betting services with land-based casinos. Customers at both sportsbooks can earn tier credits and points in the industry’s largest corporate rewards programs, which can be redeemed in-store.
Why young bettors are praised
The industry has made no secret of its desire to involve more young bettors, with much of the marketing directed towards the 21-34 age group. There are good reasons for this approach.
According to Morgan Stanley, 60% of bettors in the 21-34 age group bet on sports at least three times a week, significantly higher than the average of 47% for all age groups. The bank also noted that the average wager amount for 21- to 34-year-olds was higher, at $58 compared to $49.50 overall. Baby boomers are the most modest, placing an average of $31 per sports bet.
Another reason why young bettors are highly valued in the industry is that they tend to prefer parlays that include the same game types. About 60% of 21- to 34-year-olds surveyed by Morgan Stanley said parlays or same-game parlays are their favorite type of bet.
The bank says high hold rates for parlays are a good sign of the long-term trajectory of the industry, so operators should consider selling these bets to a wider group than just young bettors. said.
Female bettors are on the rise
According to Morgan Stanley, more women are participating in sports betting, which is good news for Fanatics. The operator has a 39% market share among women, slightly ahead of Caesars Sportsbook’s 38% market share, according to Morgan Stanley. The bank added that women make up 22% of both DraftKings and FanDuel’s customer base.
According to Morgan Stanley, women now account for nearly a third of the total domestic sports betting market, with their average bet of $51.10 slightly higher than the average bet of $48.60 for men.
As for Fanatics gaining share among female bettors, the news drew ridicule on social media platforms, with some bettors claiming that these accounts are limited in stake size by the operator. It claimed to be founded by women who are partners of men. To be fair to Fanatics, this is one of the many sportsbooks that has been accused of limiting winning bettors.
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