Market Monitor: Pennsylvania Fantasy Sports August 2021
Key Takeaways
  • It is the first negative annual growth reported this year.
  • The market is lapping an irregular 2020, when the coronavirus disrupted major sporting seasons.
  • Compared to 2019, the market is up 15.9%, equivalent of a CAGR of 7.7%.
  • In a surprise switch, FanDuel took the market lead from rival DraftKings last month.

Daily fantasy sports revenue in Pennsylvania fell in August by 25% year-over-year to $1.61 million. It is the first negative annual growth reported this year.

The market is lapping an irregular 2020, when the coronavirus disrupted major sporting seasons, so annual comparisons misrepresent the market’s overall health.

Compared to 2019, the market is up 15.9%, equivalent of a CAGR of 7.7%. This is down slightly on 12.3% PRO reported last month and July’s 8.9%, but still suggests robust underlying growth in the market.

In a surprise switch, FanDuel took the market lead from rival DraftKings in August, with its revenue ticking up to $854k. It is only the second time in two years that FanDuel has led the market, and it is one of the widest margins it has ever enjoyed.

Its market share last month was 53.1%. Only once before in market history—May 2019 (53.3%)—did it take such a large market share. Its entry fees also spiked last month, leading the market by that metric too. It maintained a gross win margin of 9.3%, lower than the historic average but close to that of DraftKings’ 9.6%.

Once again, the big two control practically the entire market, with all other operators combined generating less than half a percentage point to overall market revenue.