Since the United States Supreme Court struck down the Professional and Amateur Sports Protection Act in 2018, the sports betting industry has undergone a transformation unlike anything the country has seen before. What was once confined largely to Nevada has now expanded across dozens of states, creating a multibillion dollar market that continues to grow at a remarkable pace. The question on everyone’s mind is simple: who is coming out on top in this new age of competition.
The growth has been rapid and relentless. Sports betting revenue in the United States has climbed each year since legalization began spreading, with billions of dollars wagered every month. More states continue to legalize online and retail sportsbooks, driving unprecedented levels of activity. As this has happened, a handful of companies have emerged as clear leaders, each fighting for the largest possible share of the action.
At the center of this battle are two familiar names: FanDuel and DraftKings. These companies, both of which started as daily fantasy sports platforms, have successfully pivoted into full scale sportsbooks. Their early entry into the market, brand recognition, and aggressive marketing have allowed them to seize the lion’s share of betting volume. Collectively they account for the vast majority of all online sports bets placed in the United States. While their exact market share fluctuates month to month, FanDuel has consistently held a narrow but meaningful lead over DraftKings in recent years.
FanDuel’s rise has been powered by a combination of strong product offerings, competitive odds, and seamless integration with its daily fantasy sports platform. Its mobile app is widely considered one of the most user friendly in the industry, offering everything from pre game bets to live in play wagering. FanDuel was actually rated 2nd in best sportsbooks by WSN. They have a strong 4.5/5 rating and a very enticing welcome offer for new customers!
DraftKings has matched that level of innovation and often matches or exceeds its rival in promotional spending, offering generous sign up bonuses, odds boosts, and loyalty rewards. This aggressive approach has made the competition between the two as much about customer acquisition as about betting technology.
The competitive picture is not entirely static. Other major players are steadily gaining ground and could disrupt the duopoly. BetMGM, a joint venture between MGM Resorts and Entain, has expanded its reach through partnerships with casinos and sports leagues. Bet365, a global giant in online betting, has begun establishing a stronger foothold in the U.S. market. Fanatics, best known for its dominance in sports merchandising, has entered the space as well, leveraging its existing customer base to attract bettors. While none of these companies has yet matched the scale of FanDuel or DraftKings, they represent credible threats over the long term.
State level dynamics also play a significant role in shaping market share. New York, New Jersey, Illinois, Ohio, and Pennsylvania are among the largest and most lucrative sports betting markets in the country. New York, in particular, has quickly become the leader in total betting handle, despite imposing one of the highest tax rates on sportsbook operators. Success in these high volume states can significantly influence a company’s national position, making them critical battlegrounds for customer acquisition.
While the growth has been impressive, the business is not without its challenges. Betting margins can be volatile, particularly during high profile events like the NCAA basketball tournament or the Super Bowl. A series of results that favor bettors can quickly turn a profitable quarter into a loss. Operators also face the challenge of high taxation in certain states, which can significantly reduce profitability. In response, some companies have experimented with surcharges or adjusted promotions to offset these costs, a move that can risk alienating customers.
The technology driving the industry continues to evolve at a rapid pace. Live betting, also known as in play wagering, has become one of the fastest growing segments, allowing customers to place bets as the action unfolds in real time. Micro betting, which lets bettors wager on highly specific events such as the outcome of the next play, is gaining popularity among younger audiences. The integration of data analytics and artificial intelligence is helping sportsbooks refine their odds, personalize promotions, and better manage risk.
One of the defining features of the U.S. market is the symbiotic relationship between sportsbooks and professional sports leagues. Once wary of betting, leagues now actively embrace partnerships with operators, exchanging official data for sponsorship deals and revenue sharing arrangements. This alignment has not only legitimized the industry in the eyes of many fans but also created new channels for customer engagement.
Looking ahead, the race for market share will likely intensify as more states legalize sports betting and as technology continues to transform the customer experience. FanDuel and DraftKings are well positioned to remain at the top due to their scale, brand loyalty, and deep marketing budgets. However, the presence of strong challengers like BetMGM, Bet365, and Fanatics means the competitive landscape is far from settled. As operators vie for customer attention, expect to see even more innovation in app design, promotional strategies, and integration with sports media.
The U.S. sports betting industry is now a cornerstone of the entertainment economy, blending technology, sports culture, and financial opportunity. In just a few short years it has grown from a fledgling market into a massive and still expanding sector. For the companies leading the charge, the rewards are substantial, but so too are the risks. The battle for market dominance is fierce, and with billions of dollars at stake, the war for the top spot shows no sign of slowing.