Sports betting is not cannibalising DFS, says FanDuel
Paddy Power Betfair-owned group reports DFS revenues up 14% in Q3
The launch of sports betting in New Jersey has shown “no indication” of cannibalising fantasy revenues, FanDuel Group said today.
The Paddy Power Betfair-owned group today published its Q3 financial results, with overall revenues up 22% to £52m ($68m), and revenues ex. sports betting up 14%.
Within that, fantasy sports, including FanDuel and DRAFT was up 18%, TVG was up 7% and Betfair Casino was up 40%.
The operator said it was seeing good cross-sell from DFS to betting, with a “significant percentage” of customer activations coming from the existing customer base and almost half of those from previously inactive customers.
“To date, there has been no indication of cannibalisation of fantasy revenues with continued good customer acquisition and New Jersey player activity levels performing in line with national trends,” the operator added.
PPB said the fantasy performance benefited from a soft comparative period but was also driven by product enhancements and good execution in promotions and marketing for the new NFL season.
ON sports betting, the firm said it was encouraged by wider demand for sports betting and the initial market share FanDuel has obtained.
“We continue to believe that the key US market opportunity lies online,” PPB said. “This is evident in New Jersey where, in October, our online stakes were 40% higher than our retail operation. Our objective for sports betting in the USA is to launch within key regulated states and quickly achieve online scale.”