Analyst: “Encouraging” start to 2025 for FanDuel and BetMGM
Jefferies Equity Research analyst James Wheatcroft has reported “a much stronger start to 2025” for online sports betting, citing weekly data from New York State.
In a January 26 investor note, Wheatcroft said BetMGM was the standout provider, its handle growing 67% in early January, against 26% for the overall Empire State market.
Margins for operators were also said to be potent, “back in line after a weak December” in which operators were pummeled by bettors.
The Jefferies analyst further reported that the first week of the year witnessed 33% online-handle growth, reaching US$601 million in New York. This was, he said, the first time that weekly sports betting handle for a state had transcended the US$600 million mark.
“Strong underlying trends then continued through the following weeks … potentially benefiting from the recycling of customer winnings accumulated through December,” Wheatcroft wrote.
Sports books were also helped with playoff upsets in the NFL, where favored teams like the Detroit Lions and Tampa Bay Buccaneers were upset by underdog rivals.
BetMGM was singled out for consistent growth of handle that exceeded 60% week over week. “The most recent week saw BetMGM reach a milestone US$50 million weekly handle for the first time in its history,” Wheatcroft observed.
Also experiencing a bounce-back in its margins was FanDuel, which Wheatcroft said was “among the worst hit” by football scores in December, as favorites won predominantly. FanDuel’s revenue margins had rebounded to over 13%.
With December igaming data in across the board, online-casino revenues were up 9% from November and 35% year over year. “At +35%, this is the highest rate of igaming growth in over two years, with December a record month across each state and each major operator,” Wheatcroft reported.
New Jersey was cited as an especially durable market, showing 25% revenue growth despite being in its thirteenth year of igaming. Evincing the most robust growth among U.S. markets, New Jersey igaming had swelled over 25% for seven straight months.
Former daily fantasy providers dominated igaming, with FanDuel displaying a 25% market share and DraftKings 19.9%. BetMGM also enjoyed a 19.9%share.
“BetMGM continues to show strong signs of improvement, narrowing the market share gap vs. the DraftKings brand … and delivering its highest growth rate in almost three years (+40%), Wheatcroft observed.
He further noted early legislative interest in igaming, on the docket in Indiana, Massachusetts, Maryland, New York and Wyoming. By contrast, Virginia had already raised the topic and tabled it until 2026.
“The bill in Maryland has garnered particular attention, given that the state has only recently proposed a doubling of the OSB tax rate to 30%,” Wheatcroft wrote, adding that Maryland could raise triple that amount of tax money by introducing igaming with a 20% levy on revenue. He observed that New Jersey sees 72% of its online gambling tax revenue from igaming, as it represents more than double the sports betting market.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
Verticals:
Sectors:
Topics:
