Consumer Spending Trends in Online Sports Betting & Gambling Uncovered by Transaction Data
Online gambling and sports betting is BIG business, with roughly $127 billion waged digitally in 2023 alone. While hawk-eyed regulations provide transparency in tracing every dollar gambled online, the sources of this consumer spending — and online gambling trends associated with different generations of consumers — have historically been much more elusive to nail down.*
As a novel solution to this issue delivering unmatched clarity, Facteus alternative data reveals far deeper insights regarding:
Who online gamblers are
How and where they’re placing wagers
Which online betting sites are more (and less) popular among different consumers.
Here’s the story that the latest alternative data tells about online gambling, uncovering several previously unknown insights about “spending” on digital bets and wagers.
Where Online Gambling & Sports Betting Happens
About 93% of the money spent on online gambling and sports bets in the U.S. goes to one of three digital platforms. Specifically, the winners who attract the most consumer spending in terms of online bets include FanDuel, DraftKings, and.BetMGM
FanDuel Users & Gambling Spend
Over the last year, roughly 50% of all online gambled dollars went to FanDuel, according to the latest banking and transaction data. As a prominent gambling platform, FanDuel offers daily fantasy sports (DFS), sports betting, and online casino games. Initially popular for its fantasy drafting and sports betting, FanDuel has expanded its offerings since its debut in 2009, now providing:
A near-comprehensive sportsbook for betting across a broad range of events and sports activities
An online “casino,” with digital slots, blackjack, roulette, and other casino games
A seamless and inviting user experience
Notably, FanDuel beats out its competitors by a longshot when it comes to both the number of people using its platform and the amount of money those consumers spend on FanDuel. In particular, FanDuel has:
Taken the lead as the most popular online gambling and sports betting platform as of August 2022
More than twice as many users as the second most popular online gambling platform (DraftKings)
More than 2.25 times more consumer dollars being bet on its platform than DraftKings
Upwards of 3.3 times more consumer spending than BetMGM over the last year
More than 8.7 times more consumer dollars gambled on its platform than PrizePicks
Seen consumer spending on its platform nearly triple over the past year (since July 2023)
Also unearthed by recent transaction data are the facts that:
FanDuel is the most popular online betting platform across every generation, including Gen Z, Millennials, Gen X, and Baby Boomers.
FanDuel draws in the most spending across each generation as well, with Millennials spending the most on online gambling and giving more of their dollars to FanDuel than any other online gambling platform.
FanDuel is somewhat equally popular in the MidWest, the Northeast, and the South. It’s far less popular along the West coast, where only 4% of its customers come from.
DraftKings Customers Insights & Spending
Competing with FanDuel is DraftKings, the second most popular digital gambling platform, according to the latest transaction data and industry reports. Also offering daily fantasy sports and betting, DraftKings is a leader in the DFS space, with a loyal fanbase and an ever-expanding array of casino-style games for wider appeal and a larger footprint in the gambling industry.
Founded in 2012, today, DraftKings takes in roughly 25% of the dollars gambled online while also shaving off roughly a quarter of all online gamblers for its customer base. Critically, the transaction data also indicates that:
DraftKings became the 2nd most popular online gambling platform in March 2023, outpacing BetMGM in customer spending for the first time despite having more online users than this competitor.
DraftKings ranks 2nd across each generation, both in terms of user numbers and customer spending.
When looking at per-customer spend, DraftKings barely beats out FanDuel with Millennials, who tend to spend slightly more betting on DraftKings than FanDuel. For the per-customer spend with Gen Z, DraftKings and FanDuel are neck and neck.
More than 2 out of every 3 DraftKings customers are from the MidWest or Northeast. Like FanDuel, DraftKings is least popular among West Coast gamblers.
Consequently, while the aggregate totals put FanDuel miles ahead of DraftKings in terms of spending and dollars bet, the transaction data highlights a key opportunity for DraftKings to get ahead of its number one competitor in per customer spending with younger generations.
BetMGM Users & Wallet Share
Taking the bronze in the fierce fight to win over online gamblers is BetMGM, a online sports betting platform launched in 2018 as a joint venture between MGM Resorts International and Entain Holdings. Offering an extensive range of sports betting, BetMGM lets users place wagers on live pro games and college sports while giving them access to several casino games, including table games, slots, and poker.
With this setup and an engaging interface, BetMGM has carved out its spot as the third most popular online gambling platform, with Facteus alt data unmasking the facts that:
BetMGM claims about 18% of the wallet share for online gambling.
In November 2023, PrizePicks beat out BetMGM in terms of customers. Despite that, BetMGM still surpasses PrizePicks in terms of dollars brought in.
For 3 of the 4 generations analyzed, BetMGM outpaced both FanDeuls and DraftKings for per customer spend, seeing higher bets per customer among Millennials, Gen Xers, and Baby Boomers (but not Gen Zers).
More than 3 out of 4 people who place bets on BetMGM are from the MidWest or Northeast.
On the heels of FanDuel and DraftKings in a few key areas, BetMGM could turn the tides with some strategic maneuvering to increase its market and wallet share.
PrizePicks Customers & Competitive Edge
Also a major DFS player, PrizePicks focuses on player prop bets, rather than traditional fantasy sports formats, letting gamblers predict individual athletes’ performance across various sporting events.
Founded in 2018, PrizePicks became the fourth most popular online gambling platform in February 2023, enjoying relatively steady growth in consumer spending since then.
According to the latest transaction data, PrizePicks has accounted for roughly 6.5% of consumer spending on online gambling over the past 12 months. Even more remarkable are the facts that:
Gen Zers are about two times more likely to gamble on PrizePicks than any other platform.
More than 71% of PrizePicks’s customers are from the South. In fact, PrizePicks is especially popular in Texas and Florida.
PrizePicks is the most popular online betting platform on the West Coast, beating out FanDuels, DraftKings, and BetMGM in this region, both in terms of customer numbers and overall customer spending.
Greener to the scene, PrizePicks has made some outstanding strides over the past 12 or so months, giving it a sharper competitive edge in certain key niches, regions, and markets.
The Bottom Line
Offering a unique perspective into online gambling, transaction data can unpack essential nuances about who’s placing bets, where their money goes, and how key spending trends are evolving in the realm of online gambling. While that can distinguish the top dogs from the underdogs, it also has the potential to highlight what it may take for the underdogs to get ahead and outseat FanDuel for that number one spot in 2025 and after.
About Facteus
Facteus is a premier alternative data provider and industry leader known for its unmatched data sets and innovative data tools. Specializing in turnkey solutions and value-focused insights, Facteus has an ongoing mission to democratize data and unlock greater intelligence from bank data, debit and credit card transaction data, SKU-level data, CPG data, and more.
That’s why more corporations, analysts, investors, and key decision makers rely on Facteus data when it’s time to turbocharge strategy and unleash unprecedented growth.
*Disclaimer: The transaction data herein generally aligns with official reporting and is intended for the purposes of comparative and competitive analyses, market research, and consumer intelligence. It should not be relied on for definitive results, compliance, or KPI reporting needs.
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