DraftKings drubs FanDuel in July Missouri online sports betting revenue
An 11.8% hold percentage helped sportsbooks in Missouri in July, as they grossed US$29 million on handle of US$247 million. Sports wagering in the Show-Me State went live on 1 December.
DraftKings gained handle share, partly at the expense of FanDuel. DraftKings’ share of handle grew from 40% to 44%, while that of FanDuel dwindled from 30% to 27%.
The former also was predominant in revenue, grossing US$14.3 million, holding at 13.1%. That was the second-highest hold in the state.
FanDuel held 11.7% of monies wagered, grossing US$7.8 million. It attracted handle of US$67 million to DraftKings’ US$109 million.
The tightest hold was registered by theScore Bet, which retained 14.1% of all bets. However, it won only US$800,000, the second-lowest tally in the state and experienced smaller handle share: 2%, as opposed to June’s 3%.
Caesars Sportsbook had the lowest gross in Missouri, a mere US$600,000 on US$8 million wagered. It suffered a state-low 6.9% hold percentage.
Grossing US$1.7 million on US$17 million in bets, BetMGM held at 10.2%. It was exceeded by Bet365, which experienced handle of US$21 million and win of US$2.1 million, holding at 9.9%.
Also in the mix was Fanatics Sportsbook, which won US$2 million off US$18 million in betting volume. It held at 11.2%.
Promotional spending was down to US$6 million. Most operators reduced or stood pat on their promotional spending. Those increasing their outlays were Fanatics Sportsbook and theScore Bet. All promotional outlays are tax-deductible.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
Missouri’s launch set a high bar for hold and spending
Missouri’s July online sports betting results fit a pattern established almost immediately after the market opened Dec. 1: strong operator hold, intense competition between DraftKings and FanDuel and promotional spending that can quickly reshape taxable revenue. The July figures, with sportsbooks generating US$29 million from US$247 million in handle, showed a more mature market than the one that debuted seven months earlier. Operators held 11.8% in July, still a favorable margin by industry standards, while promotional spending fell to US$6 million.
The state’s first month was far more volatile. In December, Missouri online sportsbooks posted a 19.2% hold on US$538 million in handle, generating US$103.4 million in revenue. Yet the launch month was defined as much by incentives as betting volume. Operators gave away US$125.1 million in promotions, more than they won from customers, producing a net loss of US$21.6 million. That early imbalance, detailed in coverage of how Missouri books held tightly in their debut month, showed how aggressively national brands were willing to spend for early market share.
FanDuel led that opening month with US$212.5 million in handle and US$46 million in revenue. DraftKings followed closely, taking US$195.1 million in bets and US$31.6 million in revenue. The launch numbers established the two-company structure that has defined the state since then, but they also masked the cost of customer acquisition. FanDuel spent US$53.2 million on promotions in December, while DraftKings spent US$48.5 million. Those outlays exceeded the promotional budgets of all other operators combined and signaled that Missouri would become a direct test of whether spending could convert into durable share.
Promotions began to normalize after the opening rush
The early months after launch showed operators pulling back from the December surge, even as Missouri’s rules allowed promotional deductions that softened the tax impact. In February, promotional allowances fell to US$11 million, or 36% of revenue, compared with 61% of winnings in January. That decline was a sign that the first wave of acquisition offers was giving way to more selective retention spending. Coverage of how online sports betting promotions slowed down in Missouri in February captured the market’s shift toward more typical post-launch behavior.
February also showed DraftKings gaining an early revenue edge. It generated US$13 million from US$105 million in handle, while FanDuel produced US$12 million from US$93 million in handle. FanDuel had the stronger hold at 12.9%, compared with DraftKings’ 12%, but DraftKings’ handle advantage mattered. The company was not only acquiring customers, it was beginning to translate a larger wagering base into top-line leadership.
J.P. Morgan analyst Daniel Politzer characterized the period as typical early-market handle and hold noise tied to promotions and state accounting, with signs of normalization. That normalization is central to the July result. By July, promotional outlays had dropped to US$6 million, well below the early-month totals and down from June’s US$9 million. With fewer giveaways diluting results, operator rankings became more dependent on betting volume, hold performance and the quality of each book’s customer base.
DraftKings built its lead through spring
By March, DraftKings and FanDuel were nearly even on revenue, but the market share trend favored DraftKings. Missouri sportsbooks produced US$36 million in revenue from US$329 million in handle that month, a 10.9% hold. DraftKings held 36% of handle, compared with FanDuel’s 33%, and narrowly led in revenue, US$13.3 million to US$13.2 million. The results reported in Missouri sportsbooks’ tight March performance showed that FanDuel could still extract more from each dollar wagered, but DraftKings was winning the volume contest.
That distinction became more pronounced in April. DraftKings booked US$102.5 million in wagers and won US$13.2 million, leading the state in both handle and revenue. FanDuel followed with US$88.5 million in bets and US$12.3 million in win. FanDuel again posted the state’s top hold among major operators, at 13.9%, but DraftKings’ larger base kept it ahead. The April figures, outlined in coverage of how Missouri sportsbooks held tightly in April, also noted that DraftKings had led in revenue in every month except March.
That spring progression matters because July was not a one-month reversal. DraftKings’ July handle share rose to 44% from 40% in June, while FanDuel’s slipped to 27% from 30%. The spread between the two widened from a competitive gap into a clear lead. DraftKings handled US$109 million in July, compared with FanDuel’s US$67 million, and converted that advantage into US$14.3 million in revenue. FanDuel’s US$7.8 million in revenue remained substantial, but it was barely more than half DraftKings’ total.
June showed the cost of defending share
June provided the clearest prelude to July’s margin and spending dynamics. Sportsbooks took US$258.3 million in wagers and kept US$24.6 million, a 9.5% hold. Promotional outlays reached US$9 million, equal to 37% of operator revenue and 3.5% of handle. As reported in coverage of heavy Missouri online sports betting promo activity in June, DraftKings and FanDuel each spent more than US$3 million on promotions, together accounting for most marketwide incentive spending.
DraftKings led June with US$103.4 million in handle and US$9.8 million in revenue. FanDuel followed with US$76.3 million in handle and US$8.2 million in revenue. The June comparison was narrower than July’s because FanDuel held better, at 10.7% to DraftKings’ 9.4%. But the underlying volume gap was already meaningful. DraftKings had roughly US$27 million more in wagers in June. By July, that gap expanded to US$42 million.
The promotional reduction in July added another layer. Most operators reduced or held steady on spending, while Fanatics Sportsbook and theScore Bet increased outlays. Lower marketwide promotions may have amplified the advantage of operators with entrenched customer bases and stronger organic betting activity. DraftKings appears to have benefited most. Its hold improved to 13.1% in July, the second-highest in the state, while its handle share also rose. That combination of more wagers and stronger retention of those wagers produced the decisive revenue result.
Second-tier books remain relevant but constrained
Missouri’s market is broader than DraftKings and FanDuel, but the July results reinforced how difficult it is for smaller competitors to alter the top of the table. Bet365 has consistently occupied a meaningful second-tier position. It posted a remarkable 31.7% hold in the launch month, then settled into steadier results through spring and summer. In July, Bet365 handled US$21 million and generated US$2.1 million in revenue, holding 9.9%. That kept it competitive with Fanatics, BetMGM and Caesars, but far behind the leaders.
Fanatics Sportsbook has shown flashes of handle growth. It was one of the only operators besides DraftKings to grow handle share in April and generated US$20.2 million in June handle before slipping to US$18 million in July. Its July revenue was US$2 million, supported by an 11.2% hold. Fanatics also increased promotional spending in July, suggesting it is still willing to buy visibility and repeat play in a state where the two leading brands have already created separation.
BetMGM and Caesars have had more mixed results. BetMGM posted the tightest hold in March at 12.7%, but its July revenue was US$1.7 million from US$17 million in bets. Caesars, which had a state-best 12.5% hold in June, fell to the lowest July gross among reported operators, with US$600,000 in revenue from US$8 million in handle and a 6.9% hold. TheScore Bet had July’s highest hold at 14.1%, but with only 2% handle share, it won US$800,000.
The July stakes are market share and tax base
July’s outcome matters because Missouri is moving from launch volatility into a more stable competitive phase. Early results were distorted by unusually high promotional spending, especially in December. By midyear, operators were spending less, handle was more stable and leadership depended more on product engagement and customer retention. In that environment, DraftKings’ widening lead over FanDuel is significant.
The stakes extend beyond company rankings. Because promotional outlays are tax-deductible in Missouri, the level and timing of free bets affect how much revenue ultimately reaches the tax base. A market dominated by heavy launch promotions can produce impressive gross revenue but limited taxable value. A market with lower promotional intensity and sustained double-digit hold can generate more predictable public returns.
For FanDuel, July raises the question of whether lower share reflects a temporary sports calendar fluctuation or a more durable shift toward DraftKings. For DraftKings, the month suggests that early spending and spring momentum are translating into a larger active wagering base. For rivals, the numbers show the challenge of competing in a market where strong hold alone is not enough. Without scale, even theScore Bet’s July-best hold and Bet365’s steady performance leave them far behind the leaders.
Missouri’s first eight months have therefore moved through three phases: a promotion-heavy launch, a normalization period and now a clearer test of operator strength. July’s results indicate DraftKings has emerged from that sequence with the advantage.
