Sports betting is a competitive endeavor. Staying relevant requires a lot of working capital. It appears one of Indiana’s online sportsbooks doesn’t have to worry about that, as a FanDuel revenue growth report is positive for the brand.
FanDuel’s income from its sportsbook went up 54% in the 2019 fiscal year. Launching online sports betting in the Hoosier State certainly played a role in that growth.
The numbers on FanDuel revenue growth this year
Isolating the revenue to just what FanDuel took in from its sports betting products, that number amounts to $480 million this fiscal year. That was the result of over three billion in handle.
The overwhelming majority of that handle, 80% to be exact, came from online wagers. FanDuel estimates the current volume of all legal wagering in the United States to be worth around $10 billion, so it has a solid share of the market.
Indiana has definitely contributed towards that. From September of last through this January, FanDuel’s online and retail handle in Indiana approached $132 million.
While the brand may not do much more expansion in Indiana anytime soon, that doesn’t mean its growth should hit a snag. There are many similar opportunities around the nation right now.
New jurisdictions on the horizon for FanDuel
New markets mean new revenue and fiscal year 2020 could be full of that for several sportsbook brands. Two of them are neighbors to Indiana.
Michigan has legalized sports betting. Sportsbooks there could launch as soon as next month. FanDuel has yet to announce entry into that market, however.
Michigan is especially promising because that state not only legalized sports betting but online poker, slots, and table games as well. The impact of that this year could be minimal if at all, however.
That may be because the state likely won’t authorize online gambling until 2021. There are other jurisdictions that are more turn-key, however.
FanDuel already has a retail sportsbook presence and accepts online daily fantasy contest entries in Iowa, for example. It may start to accept online bets there soon, although there have been no announcements of any kind about that. Two other operators are now taking online bets in Iowa though, so it seems on the horizon.
FanDuel has announced a market access deal into Colorado, which could see action as soon as May 1. As in Michigan, it’s uncertain whether that will include online wagering right away.
The other neighbor to Indiana which presents an opportunity for FanDuel is Illinois. Like Michigan, it could launch retail sportsbooks next month. Again as in Michigan, there is no news about FanDuel entering that market yet.
While those markets may help FanDuel replicate its overall growth year-over-year, that’s going to be a tall order in Indiana. The thing about a new product launch is that opportunity only comes once.
Why FanDuel may not replicate its growth in Indiana
FanDuel will never go from zero to $132 million in revenue from sports betting in Indiana again. There is some good news on that front, however.
The year 2020 represents FanDuel’s first full year in the state, giving the brand several opportunities it missed out on last year. That includes March Madness and the start of the college football/NFL seasons.
Because of that, FanDuel’s total handle in FY2020 should easily surpass its FY2019 total. The margin of growth may not be as large, but the total action could be even bigger.
Overall FY2019 was a great year for FanDuel. The company has residents of and visitors to Indiana to thank for that.
