EGR US Power Rankings 2020

Welcome to the second edition of EGR’s US Power Rankings. Considering the major consolidation and marketing efforts made in the last year, the list has indeed matured with some new names joining the ranks.

Please note, the following rankings are solely comprised of online operators and do not take into account land-based revenues.

1) FanDuel Group (2)

FanDuel has seized this year’s number one spot, eclipsing fellow gaming giant DraftKings’ combined 2019 revenue across New Jersey (NJ), Pennsylvania (PA) and Indiana by 32%. The two battle states but FanDuel has taken the lead in NJ and PA.

Judges gave both companies near enough top marks across the board, with FanDuel taking a tiny lead on customer acquisition and core product functions. For now, it is almost impossible to imagine a US market without FanDuel or DraftKings at the top, especially considering both account for 74% and 30% of NJ’s sports betting and igaming markets respectively. However, FanDuel took a clear lead in PA after securing a 35% market share in the state’s first full month of mobile betting. It also made significant casino revenue of $65m in 2019, up 160% on the previous year.

Parent company Flutter Entertainment has extended its betting and gaming platform deal with Scientific Games (SG) to include FanDuel, although it is unclear what the full extent of the deal is. In time it could be the case that Flutter chooses to shift more of its brands onto SG (including The Stars Group) to homogenize the products. “Our online market share during 2019 of 44% in the states where we have gone live is testament to the quality of our products, brand and team,” Flutter CEO Peter Jackson said in the firm’s FY19 earnings report.

2) DraftKings (1)

The crown has slipped from DraftKings’ head as last year’s winner drops to second spot on the rankings behind perennial DFS adversary FanDuel. Nevertheless, the Boston-headquartered company continues to be the leading player on the online sports betting front since launching the Kambi-powered DraftKings Sportsbook app in August 2018.

According to estimates by Eilers & Krejcik Gaming (EKG), DraftKings racked up sports betting revenue of over $76m in the Garden State last year, grabbing a 31% slice of the market. Much like FanDuel, it has been able to capitalize on its DFS customer database and its brand power to put daylight between itself and the competition.

However, it’s DraftKings’ casino product has turned out to be a real tour de force. Soft launched in December 2018 with just blackjack and precious little marketing, the offering has proven a hit with customers. In December 2019, DraftKings revealed how 98% of its gaming players had been cross sold from other products.

In what is a more evenly split, but equally competitive, vertical compared to sports betting, EKG estimates DraftKings’s casino in NJ generated revenue of almost $49m throughout 2019. This puts the firm’s casino in third position with a 10.6% share of the market. Finally, DraftKings recently announced a statement of intent by acquiring sportsbook supplier SBTech in a three-way merger involving Diamond Eagle Acquisition Corp. DraftKings believes owning its own sportsbook platform will propel future growth.

3) Rush Street Interactive (6)

Leaping three positions on last year’s rankings to secure a coveted podium position is Rush Street Interactive (RSI), the eight-year-old online arm of Chicago-based Rush Street Gaming. Ever since launching its distinctive, in-house-built PlaySugarHouse online casino with its lauded rewards system in NJ in September 2016, RSI has shown it’s not there to make up the numbers.

In 2019, PlaySugarHouse was the fifth-biggest casino brand in the state with revenue of almost $36m and a 7.8% market share, according to EKG estimates. Two years after the online casino launched, RSI was quick out of the blocks to roll out its Kambi-powered sportsbook, becoming the first operator to launch an integrated sportsbook/casino app in NJ. The brand recorded estimated revenue of $10.3m, says EKG, putting its sportsbook also in fifth position in terms of market share.

RSI, which was crowned Mobile Operator of the Year at last year’s EGR Operator Awards, expanded into PA by launching PlaySugarHouse last summer and, more recently, BetRivers. Furthermore, RSI unleashed the BetRivers product in Indiana last October through its partnership with French Lick Resort.

A stellar product, an astute management team, and the ability and desire to expand into PA and Indiana in 2019 underscores RSI’s credentials and explains why the operator leads the chasing pack hot on the heels of the front two.

4) Roar Digital

The MGM/GVC JV consolidates all brands that previously fell under either of the two firms’ umbrellas, including PartyCasino and Borgata in NJ. It also marks the introduction of BetMGM (formerly PlayMGM) to the betting masses, bringing with it a new interface and a host of national marketing deals to broaden the app’s appeal among sports fans.

Roar has surely benefited from relocating a handful of GVC traders and marketing folk to NJ to replicate the success of the UK group’s Ladbrokes, Coral and bwin brands. Last year it penned a unique affiliate deal with Yahoo Sports, granting Roar access to the fantasy platform’s 60 million monthly users. Similarly, its odds and branding are being displayed in Buffalo Wild Wings sports bars across the country.

Transferring BetMGM onto GVC’s bwin sports betting platform in NJ has allowed users to transition between sportsbook, poker and casino apps seamlessly, boosting cross-sell between verticals and cleaning up the front-end. Although it currently only has 2% of the NJ betting market, GVC CEO Kenny Alexander said last year that he expects that share to grow to 10-15% this year. Meanwhile, MGM president William Hornbuckle revealed recently the JV would likely turn a profit by 2025 with additional investment of $60m to fund expansion into new states. MGM came fifth in last year’s rankings, as it was counted separately to GVC (which came 14^th).

5) Golden Nugget (3)

Despite Golden Nugget being Atlantic City’s smallest casino, this hasn’t prevented the Landry’s owned property from becoming the runaway leader when it comes to online casino. Indeed, Golden Nugget’s online license has a 35% share of NJ’s online casino market and has now topped the monthly revenue charts for 43 consecutive months.

As for GoldenNuggetCasino.com, EKG data suggests that when it comes to market share the brand occupies second spot (13.9%) – behind license partner Betfair- FanDuel – and amassed revenue of $64m over the course of 2019.

The operator’s sportsbook hasn’t fared as well as its casino, though. The offering was hindered by a ban on taking NBA wagers due to the ownership’s ties to the Houston Rockets.

However, NJ’s regulator relented last September and allowed Golden Nugget to book NBA bets except on games involving the Rockets. Perhaps realizing the need to shake things up, Golden Nugget recently announced that its sportsbook will migrate from SBTech to Scientific Games’ platform.

6) Caesars Interactive (4)

Caesars drops two spots this year as RSI steals some of its casino market share in NJ. Conversely, it has climbed the sportsbook ranks and was the sixth-largest revenue generator in 2019. Its partner in the WSOP, 888 Holdings, said the 2019 series experienced a record field for online players.

The casino giant scored relatively poorly compared to other top-10 firms, with an online product that is perhaps considered slightly clunky. Yet Caesars is still the fourth-largest casino operator in NJ when combining the Harrah’s brand.

Under Eldorado’s ownership, Caesars’ sportsbooks will be powered by William Hill once the deal is finalized. The changeover is likely to drive more traffic to the brand with a new, simplified interface and in-house technology behind it.

7) William Hill (8)

The 86-year-old UK bookmaking giant currently takes one in four bets in the US, group CFO Ruth Prior told investors in February, yet its strong retail presence in states like Nevada isn’t taken into account for these rankings. Hence why William Hill is in seventh position. However, William Hill scored highly across the board with the judging panel, while management revealed during the London-listed operator’s full-year 2019 results that the business generated $157m in online betting handle for NJ alone.

EKG suggests William Hill has grabbed an 8.75% share of the market in the Garden State with approximately $21.4m in revenue accumulated during 2019. Meanwhile, the launch last year of its proprietary, purpose-built technology platform specifically for the US market was a prudent move in order to scale and stand out from ‘me-too’ products. And the media partnership deal William Hill recently inked with CBS Sports, allowing the operator to market its products to CBS Sports’ 80 million users per month, could prove to be a particularly shrewd play.

8) Resorts Digital (7)

Although Resorts’ casino market share has slipped slightly to 6.5%, the operator scored higher than others in the top 10 on brand exposure, marketing efforts and customer acquisition. With DraftKings falling under its NJ license, Resorts Digital was the second highest casino earner in the Garden State in 2019, closing the year with $11.4m in casino revenue for December.

As the last Atlantic City casino to come online, it has done well to secure a 6.5% share of the market. Resorts Digital’s casino site features 24/7 live dealer games which are not widely offered in NJ, as well as a healthy portfolio of slots. Its sportsbook efforts have improved in the past year and it has shown in growing NJ numbers, but like others it has suffered in the shadow of rising DraftKings and FanDuel casino revenue.

9) The Stars Group (11)

Last year could be best described as transformative for The Stars Group (TSG) as the Toronto-listed business struck a landmark media and sports betting partnership with Fox Sports. The deal in May led to the launch of Fox Bet –supplanting BetStars – in NJ and PA, and the nationwide roll-out of free-to-play app Super 6 (over 1.3 million downloads in 2019).

Fox Bet has targeted recreational bettors and sports fans generally, yet it hasn’t exactly been pulling up trees in NJ so far. With an estimated market share of 1% in 2019, it underscores just how competitive the state has become on the online sports betting front in the 18 months since the very first app launched.

TSG’s full-year results for 2019 revealed performance had been in line with expectations, plus the fact its brands had 65,000 quarterly active users in NJ and PA for Q4. Meanwhile, in early November, PokerStars launched in PA as the state’s sole poker operator and went on to secure a decent $4.4m in revenue for November and December combined.

10) Hard Rock (10)

Relative to its peers, Hard Rock has had a quiet 2019 as it focused on establishing an in-house trading team and building on its casino app. Nevertheless, the brand managed to maintain its 5% share of the NJ casino market despite growing competition. Product innovation has been a priority, resulting in the release of a unique live slots feature that digitizes slot machines located in its Atlantic City property.

Meanwhile, Hard Rock has shied away from any expensive marketing deals, instead counting on its far-reaching brand awareness across the US to acquire customers. The operator launched retail and mobile betting in Iowa in an extension of its platform deal with European supplier Gaming Innovation Group (GiG). GiG’s recent pledge to build on its platform with increased US investment will likely improve Hard Rock’s position in time.

11) Tropicana (9)

Tropicana slides two spots despite maintaining a large casino presence in NJ. The app is good for around 7% of the market after falling from third to sixth-biggest casino site by revenue in 2019. And although judges ranked it among the lowest in terms of product and growth, its income is still significant.

Its site is managed by Gamesys and, as part of a deal between the casino-owner and Spin Games, has increased its gaming offering to include additional slots and free-to-play virtual betting game NBA Last 60 incorporating real historical game data. Last year’s uncertainty over the product’s future remains as few (if any) improvements have been made.

12) PointsBet (17)

Jumping an impressive five spots up the rankings, PointsBet has been a rising star in 2019, with its expectations far exceeded in NJ. The Australian bookmaker notably established a new HQ in Denver, Colorado last year to leverage huge pools of tech talent. Judges once again scored PointsBet among the top-three firms for its slick product and effective marketing efforts.

The operator leans entirely on the weight of its sportsbook, and despite a lack of accompanying casino product, it has proved that investing everything into wagering has paid off. It continues to be a favorite among sharps and recreational bettors alike, with revenue in Q3 2019 increasing by 81% year over year. The firm is also listed on US securities exchange OTC Market Group’s Best Market as it targets more US investment to continue expanding.

13) Pala Interactive (13)

Pala continues to maintain a solid position in NJ as a multi-vertical B2C offering and a thriving B2B business supplying its in-house player account management system, online casino game portfolio and integration with other content providers to other power operators like Kindred.

It sits just under MGM in terms of casino performance, as the 11th-largest casino brand. Its biggest strengths are in its proprietary technology platform and team of industry veterans with careers spanning bwin and Dafabet.

14) Parx

Parx makes its debut at 14th position on weighty casino and sports wagering gains in PA. The group has the fourth-largest online sportsbook in the Keystone State and is competing very closely against RSI and PokerStars in the casino space.

In Parx’s case, DraftKings’ late sportsbook entry in PA has been hugely favorable. Last year Parx’s SVP of interactive gaming and sports, Matt Cullen, said it intended to be “the online leader in the state” and he was not far off. The operator’s online growth has been undoubtedly driven by its long-standing land-based presence in one of the US’ largest and most populous cities, Philadelphia. Capitalizing on its retail success, Parx has developed unique omni-channel features for its sportsbook, including a Betslip Builder that can be filled out on the move.

15) 888 Holdings (12)

European operator 888 slips three places if only on an increase in competition and a lack of significant sportsbook growth compared to its peers. As others around it have scrambled to secure media partnerships and build on their sportsbook products, 888 is taking its usual stance of biding its time, a strategy that secured it success in other markets.

Much work is being done behind the scenes to grow its NJ operations, with a marketing executive being hired to properly push the sportsbook next football season, once the product is shifted onto the BetBright platform. It is also eyeing poker and casino launches in PA having re-launched a new casino platform and is experiencing a surge in first time depositors in NJ. 888 has also extended its casino marketing deal with the NFL’s New York Jets, using unique fan experiences to grow the brand’s exposure in NJ.

16) Mohegan Sun (15)

The Connecticut casino’s presence in the Garden State has shrunk with DraftKings, FanDuel and Golden Nugget now making up over 40% of the vertical. Mohegan is left with a small 2.4% slice of the casino pie. It is the sister site of Resorts but maintains only a third of its revenue. It failed to wow the judges, who rated the firm 57 out of 110. Mohegan partnered with European operator Kindred to launch Unibet-branded casino and betting products in PA last year, although the revenue is attributed to Kindred.

17) Gamesys (16)

Although Gamesys’ Virgin brand sits one place below Pala Interactive for casino revenue, its lack of growth and expansion has landed it one spot lower than last year. But as with Tropicana, it has amped up its casino content recently in a deal with Spin Games. A number of the UK firm’s assets, including its NJ Virgin Casino site, were acquired by bingo group JPJ last summer. JPJ CEO Lee Fenton told EGR: “We do want to progress to more states, but our focus today is casino, so we’ll be patient as we need to consider carefully how we can expand our operations in the US.”

18) Penn National Gaming

Penn National enters the list for the first time thanks to its Hollywood casino app’s revenue in PA, which came in at almost $8m between August and December 2019. The expansive retail group has expressed major ambitions for its sportsbook product which will sit on Kambi’s back-end, combined with an in-house-built front-end. Penn National laid down a marker in January by signing a $163m media deal with online sports media platform Barstool Sports, a tie-up that will place the Barstool brand at the forefront of its betting and casino products.

19) Ocean Casino Resort (18)

Ocean Resort, which only just maintains a spot in the rankings on respectable casino revenue, failed to wow the judges across a number of criteria. It was anticipated that the casino would launch an accompanying online sportsbook offering considering the success of its William Hill retail book, but nothing has yet come to fruition. Its NJ market share has shrunk to approximately 1%.

Joint 20) Churchill Downs (19)

Despite having launched its BetAmerica wagering app in PA, Churchill Downs (CDI) has failed to make significant progression compared to others. The operator suffered a 16% drop in earnings across all online verticals in 2019, including its horseracing brand TwinSpires, while revenue was flat at $291.6m. BetAmerica comes 13 out of 17 in NJ sportsbooks, according to EKG, with a tiny 0.3% share of the market. The business holds a similar market share for online casino. However, CDI’s luck could turn in 2020 as new launches in PA and Indiana could help to extend its appeal.

Joint 20) Kindred Group

Kindred Group only just makes the list but considering the noise the operator has made since entering the US, it seemed only right to include the Swedish powerhouse. Kindred is known for its customer-focused approach and heavy leaning towards sports ambassadors, and the US business is no different. Kindred’s NJ presence is still small but growing thanks to numerous local marketing campaigns. It is also seeing some success in PA, with January casino revenue jumping 46% on its entire 2019 income. A growing team is split between offices in NJ and New York City’s Financial District, with some European expertise driving the business.