- Daily fantasy sports revenue continued to bounce back in July.
- Total entry fees collected were almost flat year-over-year at $12 million.
- Operators spent more on promotions and contest prize pools to recapture interest in fantasy sports.
Daily fantasy sports revenue in Pennsylvania continued to bounce back in July. Revenue of $926,000 is down 26% year-over-year, but it is the best performance in five months and continues a streak of four months of sequential after it bottomed out in April.
Total entry fees did even better, almost flat year-over-year at $12 million.
The implication here is that operators spent more on promotions and prize pools to recapture interest in fantasy sports. Indeed, gross win margins were down in July. Market leader DraftKings reported an 8.3% margin, its lowest in market history, and FanDuel 6.6%, its second lowest month.
Between these big two, DraftKings continues to pull away from its rival—July revenue of $673,000 was over 2.5 times larger than FanDuel’s $250,000.
Traditionally less than 20% separates the pair, but DraftKings has shown itself to be much more adept in the post-Covid environment. It represents almost three-quarters of the market in terms of revenue and two thirds of all entry fees collected.
