The newer kids on the block are steadily chasing down two of the big boys in the US online sports betting market. And a leading industry analyst is projecting that it’s only a matter of time until Bet365 and Fanatics overtake two of the giants in the gambling game, Caesars and BetMGM.
Analysis undertaken by gambling market research experts Eilers & Krejcik Gaming, LLC is showing that both of these so-called smaller sportsbooks are closing the gap between BetMGM and Caesars. Those two sportsbooks have traditionally held down spots three and four in the US online sports betting market, behind FanDuel and DraftKings.
Lately, though, that market share is slowly shrinking. In the meantime, Bet365 and Fanatics are gaining ground. It may not be in leaps and bounds, but it is definitely proving to be a steady upward progression.
Research conducted by Eilers & Krejcik showed that Bet365 and Fanatics combined for a 6% share of state-level online sports wagering net gaming revenue (NGR) in April. That’s a record market share for the two sportsbooks. And it’s market share that the sites are taking away from the duo of Caesars and BetMGM.
“The data now points to a potential Fanatics-(Bet)365 overtake,” Eilers & Krejcik projected in their report. “(It’s) an inflection that, in our view, underscores the momentum behind these ascendant challengers, and raises questions for BetMGM and Caesars about product parity and strategic identity.”
Bet365 Growth An Impressive Feat
While Fanatics is present in 22 states and Washington, DC, Bet365 is only operating in 13 US states – Arizona, Colorado, Illinois, Indiana, Iowa, Kentucky, Louisiana, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee and Virginia. That makes the gains made by the British-owned sportsbook all the more impressive.
Bet365 has taken a measured approach toward entering the US market, not rushing to expand. That’s the path many of its rivals have chosen to take, but Bet365 is providing proof that bigger isn’t always better. Bet365’s vast offering of regular sportsbook promotions has made the site popular with sports bettors. Some of those promotions, like an early payout offer on many sports, are unique to Bet365.
Bet365 recently opened a US headquarters in Colorado, hiring some 1,000 employees. There’s also been recent speculation that the Coates family, owners of Bet365 since it launched in the 1970s, are considering going public with the company, or at the very least, having a private equity firm take control of the US end of the operation. Such a move could only serve to further ramp up the growth potential for the Bet365 brand in the US gambling sites market.
Headaches For Major Players betMGM And Caesars
Caesars has recently cut back expenditures in the promotions area, which could be impacting the site’s customer growth. On the other hand, BetMGM is leaning into a bigger promotional spend in 2025, but so far, it isn’t producing the desired results.
On top of that, earlier this year BetMGM’s reputation took a hit. The Pennsylvania Gaming Control Board fined BetMGM $260,905 for allowing individuals on the self-exclusion list to gamble. There were 152 recorded instances of BetMGM and sister site Borgata allowing accounts on the site’s self-exclusion list – meaning they are supposed to be prohibited from gambling – to make bets.
It was the fourth-highest fine ever levied against a gambling operator in Pennsylvania.
