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.*
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
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.
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.
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.
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.