The outcome of the presidential election may remain up in the air, but voters in three states have approved ballot measures to authorize sports betting. As the largest sportsbooks in the country, DraftKings (NASDAQ:DKNG) and Flutter Entertainment's (OTC: PDYPF) FanDuel look like they will be the big winners.
Maryland, Louisiana, and South Dakota now join 21 other states in allowing wagers on sporting events.
FanDuel has about a 40% share of the national sports betting market while DraftKings has approximately 35%. The weighting is skewed depending upon the state.
New Jersey, for example, has become the leading state in sports betting, taking in a record $748 million in September, or some $3.3 billion year to date. Through its partnership with the Meadowlands Racetrack, FanDuel hauled in almost $119 million in revenue, or 53% of the month's total (handle is how much bettors wager; revenue is how much the gambling companies keep).
Sandwiched between the New York and Philadelphia sports markets, it's not surprising New Jersey's market has grown so large. Also, the state is densely populated so it has a larger pool of bettors to pull from.
That suggests the newly authorized states might not be nearly as big of a market. For example, most of South Dakota's casinos are located in the city of Deadwood, and analysts estimate sports betting would add $6.1 million annually to the total currently bet there, while creating 152 additional jobs. It would ultimately provide a 15% boost to gambling in the city.
Louisiana, on the other hand, is forecast to bring in some $330 million just in tax revenue each year, while Maryland would bring in an estimated $18 million in taxes from sports betting.