The news: DraftKings is set to launch a new marketing campaign featuring comedian Kevin Hart and former NFL quarterback Ryan Fitzpatrick to promote an offer awarding new users $200 in “bonus bets.” The campaign comes as competition in the emerging US sports betting market is heating up with last week’s announcement of a new ESPN-branded sportsbook.
Behind the numbers: DraftKings and FanDuel dominate the sportsbook market with a combined 75% share, according to sports betting analyst Dustin Gouker.
The opportunity: DraftKings has bounced back from 2022 lows; its stock has risen approximately 156.29% year to date. Some of that is performance-related, while some is tied to its total addressable market.
What's working: DraftKings is capitalizing on the increasing popularity and legalization of sports betting across the US.
Why it matters: DraftKings is a major player in the sportsbook market, and its new campaign is an attempt to further solidify its position. But ESPN Bet and Fanatics are both poised to enter the market with strong branding and reach, which will increase the pressure on incumbents.
Our take: The entrance of new competitors with strong name recognition and marketing capabilities signals a significant shift in the sportsbook market—but it remains to be seen how effective ESPN Bet and Fanatics will be in capturing market share from DraftKings and FanDuel.
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